17 June 2010
In 2010, export loans from EKF have so far helped three major Danish industrial companies with important deals around the world. FLSmidth, Siemens Wind Power and Vestas have all been able to offer their customers a credit through the export lending scheme as part of the final agreement regarding delivery of the companies´ products.
”With the issuance of the three latest export loans we have now seriously begun to use the funds granted by the Danish government in 2009. It is a very time consuming process to arrange the financing of large projects and export orders, therefore, it is positive that we have now managed to close these three major projects in quick succession. In the current economic climate, where the financial market has not yet fully recovered from the financial crisis, an export loan can be crucial to the companies´ chances of winning orders . The three new cases indicate that there is a need for the export lending scheme”, says EKF´s CEO, Anette Eberhard.
FLSmidth is going to supply equipment and design to a cement factory in Jordan. Through the export lending scheme, EKF will lend the buyer, the Jordanian Modern Cement and Mining Company, 45% of the purchase price or DKK 380 million with a five year credit period. Siemens Wind Power and Vestas Wind Systems are going to supply wind turbines to wind farms in New Zealand and Australia respectively.
EKF will grant the New Zealand buyer of 28 Siemens wind turbines, Meridian Energy Limited, a loan of DKK 590 million to finance the purchase. This is equivalent to 85% of the total purchase price, and the tenor of the loan is 16.5 years. In Australia, Collgar Wind Farm, the buyer of 111 Vestas wind turbines, will borrow DKK 1.06 billion to finance the purchase. This loan covers around 45% of Collgar’s total loan to finance the project, the tenor of the loan being 17 years plus the construction period.
Until the end of December 2011 EKF can make export loans up to a total of DKK 20 billion available for Danish export companies. The export lending scheme offers a helping hand to companies who find it hard to arrange financing because the financial crisis has reduced the banks´ ability and willingness to grant credit facilities. All businesses, no matter what their size or sector might be, can be considered for an export loan. There is no minimum amount to the size of the loan; the only requirement is a credit term of more than two years.
CEO Anette Eberhard via Communications Consultant Søren Weber Stendal tel. +45 20 19 45 21.