GIEK is a government institution (ECA) supplementing the commercial financial market. Our AAA-rated guarantees give local and international banks a competitive advantage when financing Norwegian export transactions.
GIEK is Norway's Export Credit Agency (ECA) and issues AAA-rated financial guarantees on behalf of the Norwegian state, promoting Norwegian exports with guarantees in support of the lender or borrower. We partner with banks, Export Credit Norway, other lenders and co-guarantors world-wide.
Our guarantees expand banks' lending capacity and reduce capital requirements, facilitating loans or credits.
A partnership between GIEK and a bank is an advantage for the bank's customers. That wish to export or purchase from Norway. In addition to financial guarantees we can offer skilled analysts, lawyers, financial advisers and social responsibility experts.
Risk coverage – we can cover most of the risk for loans granted in connection with Norwegian export transactions or the construction of vessels or offshore installations at Norwegian yards.
Security – we guarantee the bank will receive payment. We issue guarantees in connection with loans to foreign buyers and a variety of other export-linked guarantees.
Lending capacity – a state guarantee from GIEK, with its AAA/Aaa rating, can reduce capital adequacy requirements and increase lending capacity. With increased lending capacity the bank is able to serve more companies.
Better service to the customer – a lower risk premium allows the bank to offer better financing, so the customers can realise their international ambitions.
Country risk – we conduct ethics and sustainability assessments.
We participate on the same terms as the banks (pari passu on security and financial covenants, etc.).
- We can participate in both secured and unsecured credit facilities.
We follow OECD guidelines on maximum terms, minimum premium rates and repayment schedules, depending on the type of project.
GIEK operates within an international framework of similar institutions.
GIEK charges a fee upon issuing a guarantee. If a bank is participating, the premium will reflect the bank’s price. For long-term buyer credit guarantees we must also take into account the OECD minimum premium rates. When GIEK’s risk point is in countries assigned to OECD categories 1–7, the minimum premium rates are administratively fixed (try our premium calculator), while for high-income countries (OECD category 0) they are are to be based on actual market observations.
In high-income countries, when GIEK participates on the same credit terms as banks in syndicates where there is a first priority mortgage and where the banks assume at least 25% of the risk, the OECD minimum premium is a direct function of the bank margins. If a bank’s margin is fixed for a short term, GIEK must follow the bank’s rate upward in the event of repricing. We are prevented, however, from repricing a guarantee downward during its term.
The minimum premium rate in OECD category 1–7 countries is determined by the repayment period and is also influenced by such factors as:
Country risk: Political, security, legal and macroeconomic factors that may prevent or complicate loan repayment are included here.
Buyer creditworthiness: GIEK assesses the customer’s creditworthiness, i.e. the estimated probability of a customer defaulting on its obligations. In the premium calculator, buyer creditworthiness appears on a standard rating scale from AAA to B-.
GIEK also receives a share of upfront fees and commitment fees.
Calculate a cost estimate for buyer credit and supplier credit guarantees.