PensionDanmark and EKF (Denmark’s export credit agency) enter an innovative partnership which strengthens Danish export. The agreement entails that PensionDanmark makes DKK 10 billion (USD 1.8 billion) available for the funding of Danish export orders. This means that foreign enterprises can obtain loans to place orders with Danish companies. The loans are provided in collaboration with EKF, who provides security to ensure that the loans will be paid back.
Both parties expect that wind farms will account for a major part of the common projects, but as a rule, a wide range of industries and investments may be considered relevant.
Minister of Business Affairs and Growth Ole Sohn says: “It is very positive that a public-private partnership now helps to strengthen Danish export with no less than DKK 10 billion, including not least the export of climate technologies. I therefore welcome this new initiative from PensionDanmark and EKF. It will help strengthen Danish export and thereby create new jobs in Denmark.”
Torben Möger Pedersen, CEO of PensionDanmark, says: ”At PensionDenmark, we are very pleased with the new partnership. Not only will it allow us to support Danish export and employment in a time, when it can be difficult for many companies to obtain bank financing. It is also a sound investment for the members of PensionDenmark, as it will secure a return above the interest of a Danish government bond, while at the same time EKF’s guarantee provides security for the repayment of our loan.”
EKF’s CEO Anette Eberhard says, “Danish growth and Danish export are closely connected. EKF makes Danish companies more competitive and since the financial crisis, we have doubled our exposure. The agreement we are announcing today creates a new, strong tool for supporting not just future growth but also primarily green growth”.
First billion kroner loan already in place
The first agreement is already in place. Arise Windpower AB and Platina Partners LLP are building a wind farm in Jädraås in Sweden with Vestas as the Danish supplier of 66 wind turbines. The total value of the investment is DKK 2 billion (USD 360 million). PensionDanmark funds approximately DKK 1 billion (USD 180 million), while the banks DnB NOR and SEB cover the rest.
In practice, the partnership means that PensionDanmark will be responsible for funding large Danish export orders together with one or several banks, while EKF’s contribution is to provide security for the money. The investments will be based on market terms. The agreement between EKF and PensionDanmark, signed today after six months of negotiations, is set to run for three years, but with the possibility of extension.
EKF: CEO Anette Eberhard through Communications Consultant Ole Lindhardt, tel. +45 20 18 39 52 or +45 35 46 61 78.
PensionDanmark: CEO Torben Möger Pedersen through Head of Communications, Michael Carlsen, tel. +45 29 49 46 85.
EKF secures small and large Danish companies against commercial and political risks when they trade and invest in international markets. EKF is owned by the Danish state but is operated on commercial terms. In 2010 EKF reached a total exposure worth DKK 56 billion (USD 10.1 billion).
PensionDanmark is a not-for-profit labour market pension fund offering defined contribution pensions, insurances and health care products on the basis of collective agreements covering 609,000 individuals employed in 24,000 companies within the private and public sector. In 2010, premiums were USD 1.9 billion and assets under management now exceed USD 20 billion.