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.
For the first time ever, Export Credit Norway, GIEK, GIEK Credit Insurance and Innovation Norway will participate with a joint stand at Nor-Shipping, offering both Norwegian and international businesses a common gateway to the entire export-oriented public support system.
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.
In the new online hub for responsible business, you will find information on available guidelines and corporate social responsibility requirements expected by GIEK, Export Credit Norway, Innovation Norway, Norfund, Norad, Ministry of Foreign Affairs, The Research Council of Norway, and the OECD National Contact Point Norway. The OECD National Contact Point for Responsible Business Norway manages the website.
The Norwegian seafood industry is expected to growth extensively in the years to come. The total marine value creation can potentially reach NOK 550 billion in 2050. The same year, the supplier sector of the industry could alone reach a turnover value of NOK 124 billion. With a new set of tools better suited for the seafood industry, GIEK hopes to take on a greater role in the industry’s further growth in Norway and abroad.
In 2016, China imported goods and services for USD 1.95 trillion and is one of the fastest growing markets in the world. China represents a huge opportunity for Norwegian exporters, and GIEK and Export Credit Norway already work on several large projects within land-based Norwegian export industry in China.
(Oslo, 26 October 2017) Aluminum company Alcoa Norway has secured renewable power from the wind power plants at Raudfjell and Kvitfjell, to be built by Prime Capital on Kvaløya, 30 km west of Tromsø. GIEK issues a guarantee for the power purchase contract.
Innovation Norway, Export Credit Norway and GIEK supported Inrigo in closing a deal for a drinking water facility in Cameroon. The supply of four complete drinking water facilities to the state-owned company Camwater in Cameroon is one of the largest Norwegian export contracts to an African country, excluding the oil industry, in recent years.
13-15 September, GIEK and Export Credit Norway invited environmental and social rights experts, from the practitioners of the OECD Working Party on Export Credits and Credit Guarantees, to Svalbard to discussions on the conditions in the Arctic.
June 29, 2017, Monica Mæland, Minister of Trade and Industry, launched GIEK's new lender guarantee for export-related investments in Norway. The Federation of Norwegian Industries had advoacted the need for this scheme and participated in the launch. The guarantee shall contribute to the realignment in Norwegian industry, and expands GIEK's services towards a broader set of industries.