On 1st of July 2021, Export Credit Norway and The Norwegian Export Credit Guarantee Agency (GIEK) will merge into Export Finance Norway (Eksfin), Eksportfinansiering Norge in Norwegian.
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GIEK (The Norwegian Export Credit Guarantee Agency) has had a strong focus on working conditions at shipyards for over a decade, and in many cases have observed labour rights related risks and issues at the yards. Having poor controls of labour rights, as well as poor working conditions at a shipyard should not be a competitive advantage. We have therefore seen a need for a practical guidance on labour rights risks and working conditions in the sector, as well as guidelines for assessing such risks.
For the first time GIEK has provided financing for the installation of battery packs onboard two platform service vessels (PSVs). The hybrid propulsion helps secure new contracts for the ships, Norwegian companies deliver the hardware and installation, and Norwegian emissions are reduced. The industry appreciates GIEK’s support. (Photo: Gunder Tande Sandersen)
By Kamil Zabielski, Head of Sustainability at GIEK
Sustainability, including environmental, social and financial aspects, is a key part of GIEK’s due diligence work. GIEK has been an active contributor to ECA guidelines and the regulatory framework that promotes sustainable business. GIEK’s work on sustainability is aimed both at reducing our clients’ business risks, as well as contributing to Norway’s work on the Agenda 2030 and the Sustainable Development Goals (SDGs).
State-backed Export Credit Guarantee Agency GIEK hits another milestone as it close to doubles its guarantee tally to the burgeoning sector.
Norwegian supplier Aibel is set to supply high-voltage transformer platforms for the North Sea mega-project as it muscles up in offshore wind, while sector newcomer OHT (Offshore Heavy Transports Alfa Lift AS) will deliver freight and installation services using its purpose-built installation vessel Alfa Lift.
GIEK (the Norwegian Export Credit Guarantee Agency) welcomes this decision and considers it to be good news for Norwegian exporters.
“I would very much like to congratulate Nexans Norway AS for winning yet another supply contract for a major offshore wind project. A number of Norwegian companies are becoming increasingly visible in this sector. When GIEK’s guarantees contribute to contracts for Norwegian exporters, this is very gratifying,” says Norwegian Minister of Trade and Industry Ms. Iselin Nybø.
2019 was characterised by commercial policy uncertainty, and 2020 has got off to a difficult start. In a challenging business policy climate, GIEK is even more important to exporters as a reliable and stable tool. During the year, GIEK provided new guarantees for NOK 22 billion NOK, the highest activity in one individual year since 2013: 178 new guarantees to 31 countries.
Banks will perform credit assessment and disburse loans to small and medium-sized enterprises under the new scheme. Businesses in need of credit must contact their banks directly. GIEK’s role is to administer the new scheme on behalf of the Norwegian state, and handle future claims.
The Norwegian Government has proposed a guarantee scheme in the amount of six billion Norwegian kroner (USD 522 million) for loans to airlines with a Norwegian operating license.
GIEK has issued a buyer credit guarantee worth 130 million USD (1,2 billion NOK) on behalf of Fred. Olsen Windcarrier’s service deliveries to an offshore wind project off the coast of Changhua County in Taiwan. The project doubles GIEK’s offshore wind portfolio to 260 million USD.
Norwegian maritime suppliers are looking to strengthen their position among shipyards in Norway and abroad. The suppliers have several cruise yards as clients, they operate internationally, and they plan to invest for future growth, according to a new report presented today by The Norwegian Export Credit Guarantee Agency (GIEK) and the Norwegian Maritime Exporters (NME) trade organisation.
GIEK is a member of the UN Global Compact Action Platform on Sustainable Ocean Business and was involved in the drafting of the Sustainable Ocean Principles.
In a competitive business climate GIEK's guarantees are important to the Norwegian shipping industry. GIEK’s buyer credit guarantee is a key factor to shipbuilding in Norway but also to exports of Norwegian equipment placed on foreign-built vessels.
Ukraine is utilizing Norwegian solar power to reduce its use of coal and nuclear energy. The Norwegian state guarantees NOK 145 million of the funding for a new 54 MW solar power plant located south of the capital Kiev. GIEK has provided NOK 1 billion (EUR 100 million) in guarantees for a number of solar projects in Ukraine in 2019.
In June, Brazil’s oil company Petrobras received guarantees from GIEK, the Norwegian Export Credit Guarantee Agency, for a total amount of USD 500 million. The guarantees, covering loans from a number of international banks, will finance services from Norwegian offshore support vessel companies operating on behalf of Petrobras in Brazil.
GIEK has participated in the financing of “Color Hybrid”, the celebrated Ship of the Year at the NorShipping exhibition in June. The ship will be delivered from Ulstein Shipyard in July. 70 per cent of the ship's value consists of deliveries from specialised sub-suppliers in the Norwegian maritime cluster.
Teekay Offshore has secured long-term financing from the Norwegian Government for four new shuttle tankers being built at Samsung Heavy Industries (SHI) in South Korea.
In 2018 GIEK issued new guarantees worth NOK 14 billion, a 17 percent increase from 2017. Adding to this was an even larger increase in new applications received, 21 percent. GIEK outstanding guarantee liabilities at the end of 2018 totalled NOK 88 billion, and GIEK made a total profit of NOK 1 billion.
«Kontaktpunktet for ansvarlig næringsliv» has developed an introduction to OECD’s guidelines for assessment for responsible business conduct. The guidelines are based on an internationally acknowledged method to assist companies to act responsibly.
GIEK played a key role in financing the vessel, that contains substantial Norwegian exports for the Norwegian shipyard and dozens of sub-suppliers.
The Indonesian market is large and growing steadily: 5.1 per cent growth in 2017, aiming for 5.3 per cent in 2018. This strong economic performance has attracted new investments in recent years. Resolute politicians, led by President Joko Widodo, have effectively cracked down on corruption and improved the business climate for domestic and foreign investors alike.
A new long-term power purchase agreement has been entered into between Guleslettene Vindkraft and the aluminium producer Alcoa Norway ANS. GIEK has contributed by guaranteeing Alcoa Norway's payment obligations. This is GIEK's third power purchase guarantee issue since October 2017.
June 15 Le Laperouse was delivered, the first cruise ship in a series of several new ships from Vard Group. Vard Søviknes yard now has full capacity utilization, and the group’s shipyards will supply cruise ships to several well-known actors on a continuous basis until 2021. GIEK is central to the funding of all vessels and in the conversion of Norwegian shipyard from mainly offshore vessels to other types of vessels to new markets.
GIEK is proud to be one of the participating members of the new UN Action Platform on Sustainable Ocean Business, along with other members such as DNB, NBIM, Equinor and ABN Ambro.
A strong export credit scheme and normalised relations with China are creating new opportunities for Norwegian exporters. Supported by financing from Export Credit Norway and GIEK, the Oslo-based company Alfsen og Gunderson has won a EUR 3 million contract with the Chinese company Anhui Taipingyang Special Mesh Industry Co.
(Press release) GIEK is the Norwegian Government’s largest financial institution for exports, with total exposure limits of NOK 183 billion. In 2017, the volume of applications increased by 27 per cent to 38.6 billion. While the oil service portfolio fell from 86 to 79 percent, renewable energy, aquaculture and other industries increased from 14 to 21 percent. New guarantees totalling NOK 11.8 billion triggered contracts worth NOK 21.5 billion for Norwegian companies and helped maintain 9600 jobs. "GIEK facilitates industrial transition and innovation throughout Norway, a process that continues in 2018," says Ms. Wenche Nistad, GIEK CEO.
Eolus Vind Norge AS will build a new wind power station at Øyfjell in Vefsn municipality, Nordland County. The generated electricity will be sold to the aluminium producer Alcoa Norway ANS under a long-term contract, for use at the company’s Mosjøen smelting plant. Electricity purchases under the contract are expected to total around 1.2 TWh per year for the next 15 years. GIEK is providing a EUR 256 million (approximately NOK 2.5 billion) state guarantee in respect of Alcoa Norway ANS’s contractual payment obligations.
The American expedition cruise and adventure travel company Lindblad Expedition Holdings Inc. (“Lindblad”) has received financing from Export Credit Norway and GIEK for a new polar expedition vessel from Norway based Ulstein Verft shipyard.