Competitive Export Financing to the Maritime and Oil & Gas Industry. «LNG Powering the Future in INDIA» Mumbai 23JAN2015

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1 3 Competitive Export Financing to the Maritime and Oil & Gas Industry «LNG Powering the Future in INDIA» Mumbai 23JAN2015 1

2 Our mission To provide competitive financial solutions to buyers of Norwegian Capital Goods and Services 2

3 Export Credit provides loans to the clients of Norwegian exporters New Export Credit Lending NOK28bn 2013 NOK13bn 2012 NOK8bn 2011 NOK23bn 2010 NOK24bn Legal set-up: Ownership: Funding: Credit risk: Total Lending Portfolio : Export Credit Norway Limited liability company Created by a special law Norwegian Government State Treasury GIEK Acceptable banks NOK 60bn ( USD 8bn) 0 Disbursements from the export credit system in Norway 3

Credit risk: Total Lending Portfolio 31.12.

4 Export Credit Norway offers STABLE LONG TERM FINANCING FUNDING FROM THE NORWEGIAN GOVERNMENT COMPETITIVE INTEREST RATES GENERAL TERMS Repayment period: Generally up to 8.5 years For ships 2-12 years Renewable energy projects up to 18 years Loan Amount: Capital goods: financing for up to 85 % of contract value Ship financing: financing for up to 80 % of the contract value Norwegian content: must account for at least 30 % of the contract amount. OECD All loans must comply with the OECD Arrangement on Officially Supported Export Credits THE LOAN APPLICATION MUST BE SENT BEFORE COMMERCIAL CONTRACT IS SIGNED.

5 years For ships 2-12 years Renewable energy projects up to 18 years Loan Amount: Capital goods: financing for up to 85 % of contract value Ship

5 Maritime financing Ship Parts of Ships Retrofit 5

6 Three types of financing within the Maritime industry Ship financing New vessels «Parts of Ship» Retrofit 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 A. For Norwegian content in ships to be built by yards outside Norway Repayment period up to 12 years. Retrofit equipment is defined as capital goods considered as depreciable capital equipment Repayment up to 8 ½ years. Minimum 30% Norwegian content. Export Credit Norway can finance up to 80% of the shipbuilding contract. Export Credit Norway can finance up to 80% of the contract amount of Norwegian Ship equipment and Services. Export Credit Norway can finance up to 85% of the retrofit contract. Credit Frame Agreement. 6

For Norwegian content in ships to be built by yards outside Norway Repayment period up to 12 years.

7 Oil & Gas financing 7

8 Oil & Gas financing Drillship FSRU For Norwegian content in drillships FSRU to be built by yards outside Norway Repayment period up to 12 years. Minimum 30% Norwegian content. Financing equipment to oil & gas installations FPSO FNLG Jackups For Norwegian content in FPSO FNLG FSRU and Jackups to be built by yards outside Norway Repayment up to 8 ½ years. Minimum 30% Norwegian content. Export Credit Norway can finance up to 80% of the contract amount of Norwegian Equipment and Services. Export Credit Norway can finance up to 85% of the contract amount of Norwegian Equipment and Services. 8

Financing equipment to oil & gas installations FPSO FNLG Jackups For Norwegian content in FPSO FNLG FSRU and Jackups to be built by yards outside

9 Competitive interest rates CIRR-rates Market rates 9

10 Two attractive choices between interest rate alternatives 1 2 CIRR MARKET LOAN CIRR loan (Commercial Interest Reference Rates) The rate is adjusted by OECD on the 15th of every month Export Credit Norway quotes CIRR rate before contract award a free-of-charge fixed interest rate option All OECD currencies available CIRR qualified market loan Priced in accordance with prevailing market conditions Floating rate (IBOR) Most convertible currencies available Compliance with state aid regulations The interest rate choice may remain open until shortly before final drawdown of the loan. The borrower may compare the fixed CIRR rate to the market-based interest rate and choose the most attractive option. 10

accordance with prevailing market conditions Floating rate (IBOR) Most convertible currencies available Compliance with state aid regulations The interest rate choice may

11 An attractive interest rate option: The CIRR rate 7,00 6,00 5,00 CIRR development year tenor CIRR rates Pre-contract CIRR RATES < 5 y y 9-12 y NOK USD EUR ,00 NOK USD EUR 3,00 2,00 1,00 0,00 14.Jan Jan Jan Jan Jan Jan Jan Jan.15 11

5 y 9-12 y NOK 2.21 2.21 2.21 USD 2.26 2.84 3.18 EUR 1.16 1.34 1.

12 A flexible process make your choice 3 to 4 months before delivery 12

13 Market Loans Example of margins above IBOR as of beginning of 2015: Indicative prices levels for loans with 100% ECA guarantee. Indicative Price Levels: Margin over IBOR in basis points (bps) Margin binding period 3 years 5 years 7 years 12 years USD 3 M Libor NOK 3 M Nibor EUR 3 M Euribor

Indicative Price Levels: Margin over IBOR in basis points (bps) Margin binding

14 The application Export Credit Norway must receive the loan application before the export contract has been signed 14

15 The application and the loan process 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 or buyer informs Export Credit Norway about the project and applies for financing before a legally valid and binding contract is. entered into 2 Exporter Exporter and buyer execute commercial contact. 3 or buyer applies for risk coverage from GIEK and/or acceptable financial institution(s). 4 GIEK and/or commercial bank issue loan guarantee(s). The loan application must be sent before commercial contract is signed 5 Export Credit Norway executes loan agreement with buyer and disburses the loan. 15

Exporter or buyer informs Export Credit Norway about the project and applies for financing before a legally valid and binding contract is.

16 Please contact us Export Credit Norway Hieronymus Heyerdahls gate 1 P.O. Box 1315 Vika, 0112 Oslo, Norway. Tel: (+47) MARITIME LENDING: DAGNY ASTRUP dea@eksportkreditt.no OLAV TORE BREILID otb@eksportkreditt.no PÅL N. ANDRESEN pna@eksportkreditt.no STIG GJETHAMMER stg@eksportkreditt.no KAARE HAAHJEM kah@eksportkreditt.no TELLEF TELLEFSEN tkt@eksportkreditt.no OIL & GAS JØRGEN HAUGE jha@eksportkreditt.no LAILA JOHNSEN laj@eksportkreditt.no ANNA MUSIEJ AANENSEN ama@eksportkreditt.no 16

ANDRESEN +47 9285 7379 pna@eksportkreditt.no STIG GJETHAMMER +47 9754 3444 stg@eksportkreditt.no KAARE HAAHJEM +47 4155 4431 kah@eksportkreditt.

COMPETITIVE LONG TERM FINANCING FROM NORWAY

COMPETITIVE LONG TERM FINANCING FROM NORWAY Our Mission: «Competitive financial solutions to buyers of Norwegian Capital Goods and Services, thus contributing to making Norwegian exporters win contracts»