Doing business in and with #Norway - How to use #Export #Credit #Guarantee Agency

Norwegian Export Credit Guarantee Agency

As a follow up on "Export Credit Financing", Norwegian exporters and foreign buyers can use the Norwegian GIEK -  Garanti-instituttet for eksportkreditt (Norwegian Export Credit Guarantee Agency) to complement their financing terms or as quoted from GIEK:

«The Norwegian Export Credit Guarantee Agency's (GIEK) guarantees provide competitive financing for foreign buyers of Norwegian export – and security for the Norwegian exporter.»

Process

  • Start with export credit can provide upto 85% of loan funding for a buyer
  • Use GIEK to add/get a commercial bank to possibly provide 100% funding for a buyer loan
  • CIRR sets the interest rate. A recent example for Eastern Europe, 2.8% for 12 M €
  • Bank gives tentative termsheet for 120 days
  • Bank requirements for GIEK needs to have at least BBB credit rating
  • Export Credit Norway pays out the money
  • Up to 10% of the contents of a Norwegian product/solution can be sourced locally

Contact Thomas Lidforss International for doing business with Norway

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Thomas Lidforss

Senior Business Advisor & International Business Development Projects

I have a MSEE with MBA in Business and Product Planning. 15 years of experience in complex international projects, consultative business advisor activities in the IT and Telecom industry. Have worked with small (VC funded startups) and large businesses (B2B). Interacted with customers on top levels and project level among vendors and service providers. Managed in a program/multi-project environment. Good at finding cost-effective and sustainable IT solutions for the customer, both through sourcing / procurement and selection of alternative technology.

Doing business in and with #Norway - How to use #Export #Credit #Financing

Export Credit Norway

Export Credit Norway

Export Credit Financing

The Norwegian government offers businesses in Norway to assist their foreign buyers with favorable loan financing backed by the Norwegian state through Eksportkreditt Norge AS (Export Credit Norway). 

The Exporter

Eksportkreditt handles the entire process related to: 

  • Sales/marketing
  • Application
  • Going through loan agreements, documentation, payout and follow up.
  • You can use simplified application for up to NOK 100 M (approx. 12 M USD) 

Focus

  • Industry & Renewable energy
  • Offshore & Shipping

The loans are always guaranteed by the Norwegian government. Export Credit Norway cooperates with GIEK (Norwegian Export Credit Guarantee Agency) and banks. More on GIEK in the next blogpost.

The Borrower

  • You can choose publicly backed fixed rate CIRR-loans (Commercial Interest Reference Rate) or market loans
  • You can borrow up to 85% of the value of the contract
  • You can get credit for up to 18 years
  • You can free up local credit
  • You get access to stable funding backed by the Norwegian Government 

Contact Thomas Lidforss International for doing business with Norway

 

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Thomas Lidforss

Senior Business Advisor & International Business Development Projects

I have a MSEE with MBA in Business and Product Planning. 15 years of experience in complex international projects, consultative business advisor activities in the IT and Telecom industry. Have worked with small (VC funded startups) and large businesses (B2B). Interacted with customers on top levels and project level among vendors and service providers. Managed in a program/multi-project environment. Good at finding cost-effective and sustainable IT solutions for the customer, both through sourcing / procurement and selection of alternative technology.