OECD rules on export credits regulate how and when EKF can help Danish export companies by guaranteeing their international activities.
The rules already comprised a 'sector agreement' that ensured particularly good terms for export credits for wind turbines, solar cells and other sustainable energy. This agreement has now been expanded to also include, amongst other things, co-generation power plants, waste management solutions and technologies that improve energy efficiency. Areas in which Danish companies have a traditional stronghold.
On the Danish side, EKF has been in charge of the negotiations. Deputy CEO Jan Vassard from EKF says: “The agreement covers 36 countries that share the credit for the good result. However, it is no secret that the original initiative came largely from Denmark and that Denmark has been among the most active in the negotiations.”
Longer-term financing gives more orders
The new agreement contains a number of positive elements. For example, projects that could previously be financed over a maximum of 10 years can now be financed over 15 years. The longer repayment period means that more investments and projects are profitable than was previously the case. And if more environmental investments are made, more interesting orders will be available for export companies to bid for.
At the same time, companies will be able to choose more flexible forms of loans. That makes it easier to devise a financing model that suits the individual project's cash flow. This, too, will improve the finances in a number of projects that then become feasible.
“Danish companies are in the global top class within climate and environmental technologies and we have therefore fought hard to get an agreement in place that will benefit Danish exports. We are very satisfied that years of work are now paying off,” says Deputy CEO Jan Vassard from EKF.
The main elements of the new sector agreement for export credits:
More technologies are covered by the agreement, including:
• Waste management and incineration
• District heating and cooling
• Co-generation power plants and multifuel plants
|More Danish exporters gain access to attractive export credits|
|Longer credit periods for projects involving export credits. From a maximum of 10 years to a maximum of 15 years.
||More projects will become profitable when repayment periods are longer. That means more orders.|
|More flexible financing terms and conditions, for example access to more types of loans, deferred-amortisation periods and the like
||Better conditions will make more investments profitable and attractive. That means more orders. |