Guaranteeing Norwegian exports to Brazilian projects

Transcription

1 Guaranteeing Norwegian exports to Brazilian projects Seminar on Financial Cooperation Brazil - Norway 18th February 2011 Wenche Nistad Managing Director

2 What is GIEK? GIEK offers financial guarantees in order to promote Norwegian exports Guarantees are subject OECD export credit rules GIEK does NOT offer loans, guarantees only GIEKs most important product is guarantees for long term loans 2

3 What is GIEK? Fully owned by the Norwegian state Independent Board There is no subsidy element in GIEK s pricing Main guarantee frame of NOK 120 billion GIEK is located in Oslo, approx. 60 employees 3

4 GIEK s main goals Promote Norwegian exports Guarantee premiums are to cover losses and administrative costs 4

5 What we offer guarantees for: Maritime sector Vessels built in Norway Vessels built abroad with Norwegian equipment Guarantee for ship-owners long-term debt Other export guarantees (for owners advances, performance guarantees, long term to direct users etc.) Maritime sector ships and oilrelated make up for approx. 80 % of GIEK s portfolio 5

6 What we finance types of vessels Offshore vessels: Anchor Handling Tug Supply (AHTS) Platform Supply Vessels (PSV) Construction Vessels Well Intervention Vessels Diving Vessel Subsea Vessels Drilling Vessels Semi Submersible Rigs Jack-ups FPSOs Other vessels: Ferries Luxury Yachts Chemical Parcel Tankers Tugs etc. 6

7 What we finance characteristics Many Norwegian Owners Deep water drilling vessels becoming the single most important vessel for GIEK guarantees Cost of MUSD per vessel Vessels mostly employed Increased GIEK involvement due to financial crisis Mostly pari passu with banks 7

8 GIEK and Brazil Historically: GIEK has guaranteed payment towards Norwegian exporters when selling fish to Brazilian buyers During the last decade, mainly oil service related guarantees for loans to purchasers of Norwegian oil service equipment Brazil is about to become GIEK s most important geographical market, but GIEK financing rules and regulations applicable for Brazil are the same for all geographical markets. GIEK guarantees are mostly guarantees for long term loans taken up by purchasers of Norwegian goods and services 8

9 GIEK s Brazil portfolio: 3 types of guarantee obligors 1. Guarantees for long-term debt to owners of deepwater drilling vessels on the Brazilian shelf, based on Norwegian equipment. Norwegian exports per vessel may be MUSD Brazilian owners: Odebrecht, Etesco & 2-3 more in pipeline Norwegian related owners: Seadrill, Sevan etc. 2. Guarantees for long term loans on offshore vessels in Brazilian waters (DOF, REM, Aker Solutions, Farstad, Havila, Siem, Sevan) 3. USD 1 billion guarantee facility for Petrobras purchases Covers Norwegian deliveries where Petrobras is the contractual partner and borrower Covers both existing and new contracts Petrobras becoming GIEKs most important obligor, when including indirect exposure 9

10 GIEK and Brazil The near future: Brazil s share of GIEKs total portfolio is likely to grow further. GIEK is likely to engage in financing drilling units under the Petrobras tenders for up to 28 new drilling units to be built in Brazil. The USD 1 billion facility does not rule out GIEK participation in other Petrobras financings. 10

11 GIEK and Brazil GIEK and BNDES: Confront the same challenges; financing Brazil s petroleum offshore sector GIEK able to finance Norwegian content, BNDES able to finance Brazilian content BNDES having knowledge of Brazilian financing and Brazilian clients, GIEK having knowledge of maritime and oil service financing A need for GIEK and BNDES to cooperate on cofinancing projects, especially on large projects 11

12 GIEK and Brazil GIEK and BNDES: Today: Signing a Memorandum of Understanding In the future: Signing agreements and guarantee policies? 12

13 How we finance Mostly finance end-user, not direct buyer of equipment Guaranteed amount not to exceed Norwegian content (or 80/85 % of this) Norwegian deliveries normally to contain 30 % Norwegian content in order to be Norwegian Pari passu participation with banks (security, pricing and other terms) Secured by 1 st priority mortgage Per annum premium plus commitment fee plus possibly other fees Often drawdown during construction period 13

14 GIEK s normal practical requirements (for long-term financings): GIEK s formal application form filled in Bank assessment of the project Bank term sheet Reasonable risk Much the same requirements as commercial banks Assessment of projects of high environmental risk 14

15 Thank you for your attention!