New guarantees relating to solar and offshore wind power, shipbuilding and seafood have resulted in a broader portfolio and contribute to a lower overall risk level. More small- and medium sized companies are benefiting from GIEK’s guarantees.
GIEK's guarantees benefit the maritime value chain in particular
GIEK assists Norwegian shipyards and their subcontractors by providing building and long-term financing for cruise ships, fishing vessels, ferries, and cable-laying vessels, for instance, as well as direct assistance to ship-equipment suppliers when they reorganise and start to deliver to shipyards in other countries.
GIEK is actively contributing to the green shift
Aibel's Tenne T and Doggerbank offshore-wind contracts, Scatec Solar's new solar power plant in Ukraine, Color Lines' first hybrid "plug in" passenger ferry and Fjord1's electric ferry building programme are examples of how Norwegian exporters are contributing to a more sustainable future worldwide through the sale of high-tech products.
Power purchase guarantees issued by GIEK have contributed to long-term contracts to deliver renewable wind power at a predictable cost level for power-intensive industry, which is an important export industry in Norway.
Loan guarantees for export-related investments
Loan guarantees for export-related investments in Norway have become important for upscaling seafood companies. Villa Smolt's new plant at Moltustranda and Nordlaks’ sea farm are examples of how a new guarantee product gives companies and industries that have not previously used GIEK better access to financing for fixed investments in Norway. Such financing takes place in close collaboration between GIEK and the banks.
Offshore shipping companies’ debt situation is demanding
Offshore shipping companies have undergone drastic restructuring since 2015. Unfortunately, the market outlook is still weak and further restructuring and debt cuts are necessary. A more sustainable debt level must be established so that new investors will want to contribute new capital. GIEK is continuing to try to find the best possible way of limiting falls in value and losses.
Important in the Covid-19 crisis
Due to the Covid-19 crisis during spring 2020, GIEK has been given new responsibilities by the government. GIEK will administer a new 50 billion NOK loan guarantee scheme for small- and medium-sized businesses. GIEK is also ready to administer a new airline guarantee scheme in the amount of six billion Norwegian kroner (USD 522 million) for loans to airlines with a Norwegian operating license.
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