COMPETITIVE LONG TERM FINANCING FROM NORWAY

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Sherman Hampton
7 years ago
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1 COMPETITIVE LONG TERM FINANCING FROM NORWAY

2 Our Mission: «Competitive financial solutions to buyers of Norwegian Capital Goods and Services, thus contributing to making Norwegian exporters win contracts»

3 Norwegian ECA-financing Export Credit Norway Legal set-up Ownership Funding Lender of record / Loan book Loan products Credit risk Pricing policy Limited liability company, created by special law 100 % The Norwegian Government The Norwegian State Treasury Export Credit Norway Export credits GIEK / Acceptable banks CIRR / Commercial Total lending portfolio year-end 2013: NOK 45 bn (USD 7.5bn)

law 100 % The Norwegian Government The Norwegian State Treasury Export Credit Norway Export

4 Export Credit Norway offers Stable, long-term source of financing Competitive interest rates Repayment period: Generally up to 8.5 years For ships 2-12 years Renewable energy projects up to 18 years Loan Amount: Ship financing: financing for up to 80 % of the contract value Other capital goods: financing for up to 85 % Norwegian content must account for at least 30 % of the contract amount All loans must comply with the OECD Arrangement on Officially Supported Export Credits. The loan application must be sent before commercial contract is signed.

contract value Other capital goods: financing for up to 85 % Norwegian content must account for at least 30 % of the contract amount All

5 In close co-operation with guarantors All loans must be secured by guarantee(s) from The Norwegian Guarantee Institute for Export Credits (GIEK) and/or acceptable bank(s) GIEK is a vital partner and covers political and commercial risks Export Credit Norway co-operates with a wide range of both Norwegian and international banks International banks 13% Norwegian banks 12 % 7.5 billion USD 75 % GIEK Guarantors, total lending portfolio, year-end 2013

commercial risks Export Credit Norway co-operates with a wide range of both Norwegian and international banks

6 The interest rate

7 An attractive interest rate option: CIRR rates currently at low levels 7,00 CIRR development year tenor CIRR rates Pre-contract CIRR RATES < 5 y y 9-12 y NOK USD EUR ,00 5,00 4,00 3,00 NOK USD EUR 2,00 1,00 0,00 14.Jan Jan Jan Jan Jan Jan Jan.14 7

5 y 9-12 y NOK 3.33 3.33 3.33 USD 1.89 2.72 3.35 EUR 1.49 1.97 2.

8 Three types of financing Ship financing Ships built in Norway for Foreign owner Norwegian owner within the offshore sector Ships built at Norwegian owned yard outside Norway Shipyard in Country A Owner/buyer in Country B Export Credit Norway can finance up to 80% of the shipbuilding contract «Parts of Ships» financing For ships to be built by yards outside Norway Repayment period up to 12 years Export Credit Norway can finance up to 80% of the contract amount of Norwegian Ship equipment and Services Financing of Norwegian equipment and services Norwegian content must account for at least 30% of the contract amount. Deliveries from companies based in Norway or companies abroad under Norwegian majority control generally qualify as Norwegian content 8

period up to 12 years Export Credit Norway can finance up to 80% of the contract amount of Norwegian Ship equipment and Services Financing of Norwegian equipment and services Norwegian

9 Financing of parts-of-ships Export Credit Norway can offer financing of a package of Norwegian equipment and services. We offer financing for up to 80 % of the total package of Norwegian equipment and services If there is a series of vessels, Export Credit Norway can provide financing for applicable amount on each vessel, or aggregate all Norwegian content to finance up to 80% of last vessel, or a combination thereof Loan tenor maximum 12 years from disbursement based on a case by case evaluation EXAMPLE: - Total contract price each vessel: USD 100 million - Total Norwegian equipment and services per vessel: USD 20 million - Export Credit Norway can finance up to 80 % of last vessel, or a combination thereof Min. 20 % equity Loan amount: USD 64 million 9

each vessel, or aggregate all Norwegian content to finance up to 80% of last vessel, or a combination thereof Loan tenor maximum 12 years from disbursement based on a case by case evaluation

10 WHAT SHOULD THE APPLICATION INCLUDE? - Name of buyer, borrower and supplier - Type of delivery and time of delivery - Estimated contract value - Estimated Norwegian content in the contract - Type of loan, amount, currencies, tenor 1 Exporter 2 Exporter and buyer execute commercial contract 3 GIEK or buyer applies for risk coverage from GIEK and / or acceptable financial institution(s) 4 Export and/or commercial bank issue loan guarantee(s) 5 Credit Norway executes loan agreement with buyer and disburses the loan Exporter or buyer informs Export Credit Norway about the project and applies for financing before a legally valid and binding contract is entered into

loan, amount, currencies, tenor 1 Exporter 2 Exporter and buyer execute commercial contract 3 GIEK or buyer applies for risk coverage from GIEK and / or acceptable

11 COMPETITIVE FINANCING FROM NORWAY Attractive pricing Access to long-term financing in all market conditions Flexibility within the framework A highly specialised and competent organisation Capacity for more projects moving forward

Flexibility within the framework A highly specialised and

12 Please contact us Export Credit Norway AS Hieronymus Heyerdahls gate 1, entrance Otto Sverdrups gate P.O. Box 1315 Vika, 0112 Oslo, Norway. Tel: (+47) /

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3 Competitive Export Financing to the Maritime and Oil & Gas Industry «LNG Powering the Future in INDIA» Mumbai 23JAN2015 1 Our mission To provide competitive financial solutions to buyers of Norwegian