Competitive financing from Norway Vilde Grnn Larsen, SVP Energy and - PowerPoint PPT Presentation

Competitive financing from Norway Vilde Grønn Larsen, SVP Energy and Industry Ghana-Norway Business Forum Oslo, 26 November 2019

The Norwegian «Export Credit Agency» (ECA) The Norwegian Parliament (Stortinget) Ministry of Trade, Industry and Fisheries (NFD) Financing on behalf of the Norwegian Guarantees on behalf of the Norwegian government: Loans guaranteed by government to Export Credit Norway, banks/financing institutions/GIEK banks and others.

Export Credit Norway offers STABLE, LONG-TERM FINANCING FROM THE COMPETITIVE TERMS FINANCING NORWEGIAN STATE FINANCING AVAILABLE TO ALL INDUSTRIES

Export Credit Norway has a global portfolio 4

Our product offerings Corporate Project Ship loans Financing Finance Intra SME Lease Company Financing Financing Financing Lending to Retrofit Governmental banks Financing Financing («on-lending») 5

Corporate loans ▪ Buyer: Woodside, Australia ▪ Norwegian supplier: OneSubsea Processing -delivers of pumps for installation on the seabed in the Australian «Greater Enfield» oil field. ▪ Loan Amount: USD 100 millions ▪ Financing structure: Loan from Export Credit Norway covered by guarantees from GIEK (90%) and DNB (10%)

Other Oil & Gas borrowers – with Norwegian suppliers

Ship Finance ▪ Buyer: Solstad Offshore (for work in Brazil and West Africa) ▪ Norwegian supplier: Vard Brattvaag shipyard -construction of a 550-tonne offshore construction vessel «Normand Maximus» ▪ Financing structure: Partly financed by loan from Export Credit Norway and guarantee from GIEK, in collaboration with commercial banks.

Governmental Financing ▪ Buyer: Camwater / the Cameroonian State ▪ Norwegian supplier: Inrigo -delivery of four turnkey drinking water plants ▪ Loan Amount: EUR 57.5 millions ▪ Financing structure: Loan from Export Credit Norway covered by guarantee from GIEK

Project Finance ▪ Buyer: « Agua Fria» Solar Plant, Honduras ▪ Norwegian supplier: Scatec Solar -delivery of a 60 MWh solar park. ▪ Loan Amount: USD 51.3 millions ▪ Financing structure: Export Credit Norway and GIEK participated in the financing based on the Norwegian content in the project.

Intra-company financing ▪ Local subsidiary: GC Rieber Compact South Africa ▪ Mother company: GC Rieber Compact Norway ▪ Investment: A new production line to expand its local production of ready-to-use therapeutic foods. ▪ Loan Amount: EUR 2.2 millions ▪ Financing structure: Loan from Export Credit Norway guaranteed by GIEK and GC Rieber Compact.

General terms NORWEGIAN MUST COMPLY REPAYMENT PERIOD LOAN AMOUNT CONTENT WITH: ▪ the OECD ▪ Minimum 30% of ▪ Generally: ▪ Capital goods: Up Arrangement. the contract. Up to 10 yrs to 85% of contract ▪ Policy for anti- value. ▪ Among the more ▪ Ships: Up to 12 yrs ▪ Ship financing: Up corruption. flexible ECAs. ▪ Project finance: to 80% of contract ▪ Policy for Up to 14 yrs value. Environmental and ▪ Renewable energy: Social risk. Up to 18 yrs Local content in Ghana included in the contract must be limited to 30% of the contract value. 12

Competitive interest rates CIRR rates Market rates Free interest rates option

Two attractive choices between interest rate alternatives MARKET CIRR LOAN CIRR loan (Commercial Interest CIRR qualified market loan Reference Rates) • Priced in accordance with • Fixed interest rate for the whole prevailing market conditions • Most convertible currencies period • All OECD currencies available available The interest rate choice may remain The borrower may compare the fixed open until shortly before final CIRR rate to the market-based interest drawdown of the loan. rate and choose the most attractive option. 15

CIRR Loans Fixed interest rates for the period 15.11. – 14.12.2019 in % pa. 5½ – 8½ years < 5 years 9-12 years NOK 2.25% 2.25% 2.25% USD 2.53% 2.53% 2.62% EUR 0.28% 0.34% 0.45% 16

Risk premium and other costs ▪ On top of the interest rate for the loan, GIEK and/or the guarantor(s) will add an additional percentage rate for covering the risk, a so-called «risk premium» . ▪ The risk premium varies in each transaction depending on the perceived risk in the transaction. ▪ The perceived risk depends on: – The borrowers ability to repay the loan – The country – The industry – Environmental & social impacts – Other case-specific factors ▪ Local legal fees, i.e. to ensure the transaction and loan agreement comply with local laws and regulations, have to be covered by the borrower. ▪ The financial institutions involved in the transaction will usually charge a fee for arranging and managing the loan. 17

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