Perspective
31 March 2014
EU keeps pressure on China to develop new common export finance guidelines
Region:
Europe
Guest post, CC solutions: In the context of trade negotiations between China and the European Union, the EU's trade chief reiterated the importance of China committing to working on the development of international guidelines on export financing.
In the context of trade negotiations between China and the European Union, the EU's trade chief reiterated the importance of China committing to working on the development of international guidelines on export financing. China is not party to the OECD guidelines to which most ECA adhere, which results in Chinese companies beating out Western competitors due to the cheaper financing offered by Chinese ECAs.
As part of its plans to increase financing for infrastructure projects, the European Commission will study strengthening and "improving" national ECAs to further absorb exporters' risks.
~Novatek^, Russia's second-largest gas producer, says it will not be affected by the sanctions imposed by the United States to Gennady Timchenko, who owns 23.5% of the company. The company has been developing the USD 27 billion Yamal LNG project. The project has concluded contracts for 78% of the planned gas production.
The Roy Hill project in Australia has finally secured its required USD 10 billion of financing. The remaining USD 7.2 billion financing was secured last week, and it comprises loans and guarantees from five ECAs and 19 commercial banks.
The Cape Wind project in the United States secured an additional USD 400 million in financing from ~Natixis^, ~Rabobank^, and ~Bank of Tokyo-Mitsubishi^. With this deal, the project has secured approximately half of its USD 2.5 billion financing package.
~Enel Green Power^ has secured a EUR 153 million loan insured by Spain's ~CESCE^ that will be used to develop wind farms in Mexico.
The Korea ~Ex-Im Bank^ has agreed to provide USD 200 million financing for Krakatu Posco's integrated steel mill in Indonesia.
EDC extended a USD 10 million line of credit to Turkey's ~AkLease^. Proceeds of the loan will be used to finance Canadian exports in the context of Turkey's EUR 100 billion infrastructure investment program.
~UK Export Finance^ is looking to sell next week the last of 40 aircraft returned after the September 11, 2001 terrorist attacks. The ECA has been acting as operating lessor of these aircraft for the past 13 years.
The ~US Ex-Im Bank^ named Bob Morin as new Senior Vice President for Business and Product Development and Robert Roy as the new Vice President of the Transportation Division. Congratulations to both.
