Today, PFA Pension, Denmark´s largest pension fund, and EKF, Denmark´s export credit agency, have entered an ambitious partnership. The aim is to strengthen growth and create jobs in Danish export companies and their sub-suppliers. PFA Pension is making a total of DKK 10 billion available for the new partnership.
The partnership means that in future, foreign enterprises can obtain loans from PFA Pension to place orders with Danish companies. The loans will be arranged by EKF who provides security to ensure that the money will be paid back.
”The most important task in the Danish society right now is to promote growth and create jobs in the private sector. PFA Pension wishes to make an active contribution to this process and at the same time making sure that our customers obtain a sound return on their investments. This can be achieved through our partnership with EKF”, says Henrik Heideby, Group CEO and President of PFA Pension.
EKF is equally satisfied. CEO of EKF Anette Eberhard says, “The partnership between EKF and PFA Pension increases the Danish export companies´ chances of winning new orders. Therefore, at EKF, we look forward to making the billions from PFA Pension work for the benefit of Denmark. We know that the demand is there; in the second half of 2011 alone EKF helped to secure loans worth more than DKK 5 billion”.
The price of EKF´s guarantees is based on market terms. EKF will introduce PFA Pension to possible new investments on an ongoing basis. But as a rule the parties expect the projects to involve loans worth minimum DKK 250 million with long credit periods, i.e. large projects such as wind farms and activities within the oil- and gas industry or similar.
New ideas provide more options for companies
Since the beginning of the financial crisis it has been increasingly more difficult for companies to secure financing from the traditional capital markets. Thus, innovative thinking is required. The agreement between the privately owned pension fund PFA Pension and the state-owned EKF is a good example. When pension funds step in as funding sources, Danish export companies and their customers are given more options. This helps to secure an efficient and flexible capital market.
About PFA Pension
PFA Pension is Denmark´s largest customer-owned pension fund. The company administers a pension fund worth DKK 335 billion involving more than half a million customers. Approximately 10,000 companies have a pension scheme from PFA Pension.
PFA´s aim is to ensure that customers obtain the best possible pension scheme with the highest return. However, PFA Pension also contributes to growth and development in Danish trade and industry through the company´s investments. Thus, in 2011 PFA participated in the establishment of Dansk Vækstkapital, which is a private investment fund making commercial investment in Danish companies with growth potential.
EKF strengthens the competitiveness of small and large Danish companies. Partly by securing these companies against the risks involved with trading and investment in international markets. And partly by helping their foreign customers obtain financing and thus making it attractive for them to place orders in Denmark.
In 2011 EKF´s efforts helped to secure new orders worth more than DKK 30 billion for Danish export companies and their sub-suppliers. This improved Denmark’s balance of payments by DKK 12 billion and helped to create or maintain 20,000 jobs in Denmark. EKF is owned by the Danish state, but is operated as a modern financial institution on commercial terms.
See also our partnership with PensionDanmark