Stena Atlantic has closed a $574 GIEK/K-sure/Kexim-backed facility to finance the purchase of a semi-submersible drilling rig. MLAs on the ECA tranches are Citi and Kexim, with AB Svensk Exportkredit, Bank of America, DNB Bank, Nordea, Citi, Skandinaviska Enskilda Banken and Handelsbanken Capital Markets and Svensk Handelsbanken as MLAs for the commercial facility. Watson, Farley and Williams acted as legal counsel to the lenders.
KazakhExport and VTB Bank (Kazakhstan) have signed an agreement on conditional bank deposits that will open up new opportunities for Kazakh exporters. KazakhExport will be able to place conditional deposits with VTB for further provision by the bank of pre-export financing. “Now exporters can replenish their current capital on the most favorable terms, and along with that insure risks when conducting export transactions,” says Dmitry Zabello, chairperson of VTB Bank (Kazakhstan).
Desjardins Capital and Siparex Group, a French private equity firm, have launched their Transatlantic Fund, raising an initial $120 million. Bpifrance, Capital Regional et Cooperatif Desjardins (CRCD) and Export Development Canada (EDC) have signed on as sponsors. The Transatlantic Fund will invest in French and Quebec small and mid-sized businesses, facilitating North American opportunities for the former and European opportunities for the latter.
From modernising the OECD consensus, creating an international exporters' forum to linking deal margin grids to borrowers sustainable development goals, there were a number of exciting takeaways from two days of forward thinking debate at TXF Global in Prague last week.
Ghana EXIM Bank – founded in 2016 – is making significant project funding inroads with SMEs after just one year of operations. The development bank has approved GHS417 million ($88.5 million) to support SMEs in Ghana’s One District, One Factory (1D1F) Initiative – designed to accelerate Ghana's industrialization and socio-economic development – and has backed a number of projects in the agri and pharmaceutical sectors.
KazakhExport has agreed to provide 90% cover for Agricultural Credit Corporation (ACC) working capital loans to Kazakh farmers. In addition, ACC will be significantly cutting due diligence times on future lending decisions.
Singapore is preparing to launch a collateralised loan obligation (CLO) consisting of dozens of project financings across Asia Pacific in a bid to boost institutional investment in Asian infrastructure.
Several key project finance banks have transferred assets totalling slightly under $500 million into the pool to kick-start the CLO fund, which is denominated in US dollars, according to a banker familiar with the matter.
The fund would consist of 37 project loans spread across a range of industries including energy, liquid natural gas, transport and resources. One fifth of the assets are from Australia, another 14% each from Indonesia and Vietnam and the balance from other countries including Singapore and Oman.
The fund is to be split into different tranches of varying credit profiles with the top-ranking AA1 piece comprising loans provided by various export credit agencies.
Zimbabwe-based mobile telecoms provider NetOne is set to secure a $71 million loan from Chexim for the upgrading of its infrastructure within the next three months. NetOne chief executive officer Mr Lazarus Muchenje said: "The $71 million will go towards the data, 3G+ and 4G as there has been a huge uptake of data services in Zimbabwe, this is expected to bridge the digital divide."
KfW IPEX-Bank has structured long term non-recourse financing for Genneia's 101.4MW Pomona wind project in Argentina. The bank is providing a tranche of around $120.9 million which is backed by cover from Euler Hermes. Deutsche Investitions- und Entwicklungsgesellschaft (DEG) is providing an additional $20.7 million in debt. The project is backed by a 20-year PPA and has Nordex as EPC contractor and maintenance provider for 10 years.
Germany's KfW IPEX-Bank is providing €23.4 million in debt financing to India-headquartered IL&FS Transportation to be used towards the Rapid Metro South Extension Project in Delhi.
The project involves an extension of the dual-track metro line by about 7km and five stations connecting the IT industrial park in Gurugram to Delhi's metro system and the southern part of Gurugram. KfW is serving as Hermes agent.
Now the dust has settled after the roaring success of TXF Global in Prague last week, the world’s leading export and agency finance conference, we highlight 15 of the most significant trends in the market over the past year.
Swedish tidal energy company Minesto has appointed two board members in a bid to boost the company's project finance capability.
Javier Sanz, chief technological officer renewable energies at European investor InnoEnergy, and Jonas Millqvist, senior underwriter at Denmark's EKF with project finance experience from wind turbine maker Vestas Wind Systems, are joining Minesto's board of directors.
Sanz will focus on the commercialisation of Minesto's technology via reducing risks, improving the business case and shortening the time to market. Millqvist will help the company obtain project finance for the development of marine energy projects based on its Deep Green technology.
Nippon Export and Investment Insurance is to underwrite Overseas Investment Insurance covering political risk of Panama to support investment by ITOCHU Corporation in Ricardo Pérez a distributor for Toyota and Lexus in Panama.
Equatorial Guinea has become the 50th member state of African Export-Import Bank (Afreximbank). The country is a leading exporter of oil, natural gas, timber, cocoa and fish. Membership of Afreximbank gives Equatorial Guinea access to the products and facilities offered by Afreximbank, including trade and project finance facilities, guarantees, trade information and advisory services, support in the development of a local content policy, and assistance in developing and implementing industrial parks and special economic zones.
Sponsors of the Formosa 1 offshore wind project – Orsted (35%), Macquarie Capital (50%) and Swancor (15%) – in Taiwan have reached financial close on a TWD18.7 billion ($626 million) 16-year ECA-backed project financing for the scheme. The lender line-up comprises ANZ, BNP Paribas, Credit Agricole, DBS Bank, Deutsche Bank, ING Bank, MUFG, Societe Generale, Cathay United Bank, EnTie Commercial Bank, Taipei Fubon Commercial Bank, KGI Bank and ECA support from Danish export credit agency EKF. Macquarie is said to be looking to sell of part of its stake in the project.
Malaysia's Finance Ministry has discovered dubious payments made in two pipeline projects, with nearly 90% of the contracts worth RM9.4 billion (S$3.2 billion) being paid out but only 13% of the work being completed.
The projects - one multi-product petroleum pipeline running from Melaka and Negeri Sembilan to Kedah, and a gas pipeline from Kimanis to Sandakan and Tawau, all in Sabah - were handled by Suria Strategic Energy Resources (SSER), a wholly owned subsidiary of the Ministry of Finance. The projects were awarded to China Petroleum Pipeline Bureau in November 2016.
SSER secured 85% of funding for both projects from the Export-Import Bank of China in March 2017, while the remaining 15% was to be raised by issuing sukuk, or Islamic bonds.
The Export-Import Bank of Korea (Kexim) has agreed to provide P9.1 billion ($172.64 million) for the construction of a new container port in Cebu, the Philippines.
The loan has an interest rate of 0.15%, payable over 40 years, with a ten-year grace period. The new loan is part of the $1 billion official development assistance that South Korea committed last May to provide to the Philippines.
Sri Lanka's Hatton National Bank (HNB) has syndicated a Rs. 9.0 billion loan to Western Power Company to finance the country's first waste to energy plant which will convert all of Colombo Municipality's solid waste to generate 10MW of power. Hatton National Bank was the lead arranger, together with People's Bank, DFCC and Bank of Ceylon.
The US Ex-Im political quagmire continues. So Michael Whalen, managing director at Berkeley Group and former vice president of structured finance at US Ex-Im, asks what a new US export finance agency vision might look like.
Kuwait Integrated Petroleum Industries Company, owned by Kuwait Petroleum Corporation, plans to borrow up to $2.6 billion from banks and export credit agencies to build a liquefied natural gas import terminal.
The company will use the money raised to develop the terminal at Kuwait’s Al Zour complex, which also has a refinery and a petrochemical facility. Japan’s Sumitomo Mitsui Banking Corporation (SMBC) is advising KIPIC on the financing, which will also include a loan denominated in Kuwaiti dinars and backed by local banks.
The $2.6 billion international debt facility, with a maturity of around 15 years, is coordinated by four banks, and will partly be backed by the Export-Import Bank of Korea (Kexim) and Korea Trade Insurance Corporation. Hyundai Engineering, Hyundai Engineering & Construction and Korea Gas Corporation are building the project.
Brazilian state-run oil company Petrobras has received $900 million of a $1 billion loan from the Export-Import Bank of China (Chexim). The group will receive the remaining $100 million by May next year. The loan, part of Petrobras' effort to diversify its sources of finance, was signed two years ago to be used to pay for goods and services already contracted with Chinese firms.
TXF's second export finance podcast of 2018 asks whether the industry is, or can be, a force for good? This is the final discussion before our 2018 live show at TXF Global in Prague on the 6 June, where we will also be joined by EKN’s Anna-Karin Jatko and Euler Hermes’ Thomas Baum.
The Export-Import Bank of Thailand has launched 'CLM Trade Insurance' to help the country's small and medium-sized enterprise exporters hedge risk of non-payment by buyers in Cambodia, Lao and Myanmar (CLM) by offering insurance coverage for export worth up to 1 million baht per transaction under payment term of not exceeding 90 days.
The protection covers such cases as buyer's bankruptcy, buyer's non-payment, buyer country's warfare, riot, revolution, coup d'etat, or prohibition of outward transfer of money.
The Indonesian Export Financing Agency - Indonesia Eximbank - is set to provide a Rp 354 billion ($25.5 million) export credit facility to state-owned aircraft maker PT Dirgantara Indonesia (PTDI).
PTDI will use the credit facility to export CN-235 turboprop aircraft to Nepal and Senegal. The loan is for one year. State-owned train manufacturer PT Industri Kereta Api has also received a credit facility to support the export of its trains to Bangladesh.
Cambodia's Amru Rice will be the recipient of the first loan to Cambodia's private sector that has been guaranteed by the Export-Import Bank of the United States.
The $345,400 loan will be disbursed by US-based Atrafin, and will be used to purchase a grain storage system from SCAFCO, a manufacturer of agricultural equipment in Washington State.
Topi Vesteri, Deputy CEO, Group CCO at Finnvera and President at the International Union of Credit & Investment Insurers (Berne Union) is to be honoured with the TXF Industry Fellowship Award in recognition for his exceptional service to the international export finance sector.
Telecom Egypt and Huawei have signed a $200 million long-term financing with Chinese financial institutions including the Bank of China and China Export & Credit Insurance Corporation (Sinosure). Huawei facilitated financing to Telecom Egypt for the roll-out of the 4G network and the deployment of transmission and core networks. The tenor of the facility is 48 months with a grace period of 24 months.
The presale report for the $1.2 billion private activity bond (PAB) issue backing LAX Integrated Express Solution's (LINXS) Automated People Mover Project at Los Angeles International Airport is out. Proceeds of the series 2018 A&B bonds, along with a $263 million design-build loan facility, $1 billion in milestone payments from Los Angeles World Airports (LAWA) and $96 million in developer equity will be used to pay project costs as well as capitalized interest during construction. The private activity bonds (PABs) are expected to price on or about 5 June 2018.
The project is being procured as an availability-based 30-year DBFOM public private partnership (P3) concession. Under the terms of the project agreement, LAWA will make regular construction period milestone payments as certain percentage thresholds are met and additional design and construction payments followed by availability-based payments during the operating phase. Project costs total approximately $2.7 billion.
Germany's KfW IPEX-Bank is financing the reinforcement of the Afsluitdijk dam project in the Netherlands, alongside DekaBank Deutsche Girozentrale, Landesbank Baden-Württemberg, Belfius Bank NV/SA, Coöperatieve Rabobank, and the European Investment Bank.
Within the framework of a PPP financing structure, the banks are together providing borrowed funds of around €815 million for the project. KfW IPEX-Bank is making €124 million available. The total investment volume is valued at around €830 million.
The design, construction and long term maintenance of the flood defense project will be completed by BAM Infra and Van Oord Nederland.
Spanish renewable energy company Grenergy Renovables has closed financing with Germany's KfW IPEX-Bank for the 24MW Kosten wind project in Chubut, in Argentina's Patagonian region.
The financing involves a 15-year export credit, guaranteed by credit insurance firm Euler Hermes. The project, which is part of Argentina's RenovAr renewable energy auction programme and will sell its output under a 20-year power purchase agreement, also includes a World Bank guarantee. The wind farm will be built by German wind turbine manufacturer Senvion.
China Energy Reserve & Chemicals Group has not paid a $350 million bond that matured earlier this month - the latest example of China's deleveraging campaign choking off financing for some companies.
The oil and gas producer, which has $1.8 billion of offshore notes outstanding, cited 'tightening in credit conditions' for the default. The company plans to suspend this year's interest payments on bonds due in 2021 and 2022 while it considers asset sales and seeks to restructure the notes.
The African Export-Import Bank is arranging up to $2 billion in financing support to Angola. The bank also announced proposals for $1 billion to be offered under its Investment Guarantee Refinancing Facility (ICREF) to facilitate private sector investments in industrial and non-oil productive activities, including export manufacturing, fishing, agri-business and tourism. ICREF will be offered through designated banks.
Turkmenistan plans to soon secure all the necessary funding to complete the construction of an $8 billion natural gas pipeline to Afghanistan, Pakistan and India. The Central Asian nation is building the TAPI pipeline to diversify its gas exports, which have mostly gone to China.
Muhammetmyrat Amanov, chief executive of TAPI Pipeline company, said the group was in talks with several export credit agencies, including Italy's SACE and France's Hermes, as well as Greek export credit insurer ECIO.
The African Export-Import Bank (Afreximbank), the Finance Center for South-South Cooperation, and the Made-in-Africa Initiative have announced a joint effort to mobilise $1 billion in equity fund. The platform is expected to attract investment capital from the public and private sectors and to facilitate the flow of foreign direct investment from China and other South economies into manufacturing and other value-added activities in Africa.
The groups will also explore the establishment of e-commerce trading platforms to facilitate the transformation from traditional offline business-to-business and business-to-customer transactions to online mode, especially with regard to small and medium-sized enterprises in Africa.
Ghana becomes the first West African country to have a representative of UK Export Finance (UKEF) stationed in-country. Steve Gray, who will be taking up office at the British High Commission in Accra as the UKEF Country Manager, will work with the Department for International Trade team to strengthen trading relations between Ghana and the United Kingdom.
Whether you’re an insurance buyer, provider or simply looking to learn more about political risk and trade credit insurance as a risk management tool, this event is a unique opportunity to network with senior decision makers and discuss the key issues impacting the private insurance industry.
A one-day event bringing together Italian exporters large and small, and the stakeholders that do business with them. Network with your peers and potential clients and uncover the latest trends and opportunities.