The Citi World Ofﬁcial Agency Guide 2012-2013 Pandit Chief Executive Officer, Citigroup...

TRADE FINANCE

The Citi WorldOfficial Agency Guide

2012-2013Published by TRADE FINANCE

© 2012 Citibank, N.A. All rights reserved. Citi and Arc Design is a registered service mark of Citigroup Inc.

New trade flows create new growth opportunities. That’s why Citi’s trade network spans 128 cities in 72 countries. Our award-winning solutions can provide you with global platforms and innovative financing options wherever you do business. And our long-standing relationships with export credit agencies and multilateral institutions keep things moving. Find out how our global capabilities and on-the-ground experts can help manage your physical and financial supply chains and sustain the flow of commerce at trade.transactionservices.citi.com.

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Export and Agency Finance

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How The Citi World Official Agency Guide 2012-2013 was compiled

• The Citi World Official Agency Guide (WOAG) has evolved from the earlier title of the World ExportCredit Guide (WECG). The new name better reflects changes that are taking place in the export creditand developmental finance arena. In addition, the grouping of multilateral lenders to also includedevelopment finance institutions (DFIs), also reflects the growing roles these agencies play inprojects and major export contracts.

• In compiling this manual we have contacted all of last year’s entrants and asked them to update theirprofiles. These entries are free of charge. Most agencies have responded and we thank you for yourcooperation. Where an agency has not responded we have used last year’s entry. We kindly ask allagencies to provide us with any updates they require and their logos as the WOAG is also on theTrade Finance Magazine website (www.tradefinancemagazine.com). Updating of next year’s hardcopy will commence in July 2013, and any updates should be sent to the managing editor .

• Trade Finance Magazine has made every effort to contact institutions and obtain updatedinformation. As such, Trade Finance Magazine, Euromoney Institutional Investor, and WOAG sponsorCiti do not accept any responsibility for any discrepancies contained within this publication, nor forthe consequences of any business decision taken based on the contents of this publication.

• Special thanks to Donna McNamara at Citi in New York leading the Citi teamwork coordination andworking with Trade Finance Magazine in the production of the Guide.

Trade Finance and Citi The Citi World Official Agency Guide 2012-2013 1

The Citi World Official Agency Guide 2012-2013


Managing editor: Jonathan BellProduction editor: John SmithReporter and WOAG researcher: Oliver GordonEditor: Oliver O’ConnellStaff writer: Kimberley LongPublisher: Dominik KloiberBusiness group manager: Sean BrierleyDivisional director: Roger Davies

The Citi World Official AgencyGuide 2012-2013

Published by TRADE FINANCE

TRADE FINANCE

The Citi World

Official Agency Guide

2012-2013

Published by TRADE FINANCE

TRADE FINANCE™Nestor House, Playhouse Yard, London, UK, EC4V 5EX Tel: +44 (0) 20 7779 8310

Directors PM Fallon, chairman and editor-in-chief, The Viscount Rothermere, joint president, Sir Patrick Sergeant, joint president, PR Ensor, managingdirector, B Al-Rehany, D Alfano, JC Botts, E Bounous, DC Cohen, CHC Fordham, J Gonzalez, CR Jones, NF Osborn, JL Wilkinson, MWH Morgan, DP Pritchard.

© Euromoney Institutional Investor plc, 2012. No part of this publication may be reproduced or transmitted in any form or by any means without theprior written permission of the publisher. Although Euromoney Institutional Investor plc has made every effort to ensure the accuracy of this publication,neither it nor the sponsor can accept any legal responsibility whatsoever for consequences that may arise from errors or omissions.

2 The Citi World Official Agency Guide 2012-2013 Trade Finance and Citi

Contacts


CONTACT DETAILSCiti

Export and Agency Finance contacts:

GlobalJohn Ahearn

Global Head of Trade, Citi Transaction ServicesTel: + 1 212 816 [email protected]

Valentino Gallo Global Head of Export and Agency Finance, Citi Transaction Services

Tel: + 1 212 816 [email protected]

AmericasAe Kyong Chung

Americas Head, Export and Agency Finance, Citi Transaction ServicesTel: + 1 917 [email protected]

Asia-PacificSumanta Panigrahi

Asia-Pacific Head, Export and Agency Finance, Citi Transaction ServicesTel: + 852 3419 8759

[email protected]

EMEAAlexander Taylor

Regional Head EMEA, Export and Agency Finance, Citi Transaction ServicesLondon

Tel: + 44 20 7986 [email protected]

Myrjam TschoekeHead of Project Finance, Export and Agency Finance, Citi Transaction Services

FrankfurtTel: + 49 69 1366 [email protected]

JapanYohei Yumoto

Japan Head, Export and Agency Finance, Citi Transaction ServicesTel: + 81 3 6270 [email protected]

The eurozone; financial regulation; emergingmarkets’ growing exports: these are just a few of thedevelopments presenting both challenges and uniqueopportunities for today’s players in the global tradearena.

Together they raise a critical question: how cangovernment and business work together to unlockliquidity and keep goods flowing freely betweenexporters and importers? Squarely in the centre ofthe solution are official agencies - that is, export

credit agencies, and development finance institutions.

The role of official agencies has been evolving to meet the changingneeds of corporations and governments worldwide. Working in concertwith market participants - exporters, importers, contractors, banks,investors and legal experts - official agencies are helping create newmodels and financing programmes that strengthen the links of the globalsupply chain.

I am excited to present to you the Citi World Official Agency Guide 2012-2013, your definitive industry reference to agencies worldwide. In thisGuide, banks and borrowers can access timely insights about officialagencies and the global trade landscape - insights with which to tacklethe toughest issues of today’s market. ■




Amid global challenges, agencies keepgoods flowing freely

Foreword by Vikram Pandit, Chief Executive Officer, Citigroup

Vikram PanditChief Executive Officer,Citigroup

October 1st & 2nd 201213th Annual Global Export FinanceConferenceThe Hotel Arts, Barcelona

October 18th & 19th 20126th Annual Export Finance GermanyConferenceThe Radisson Blu, Berlin

February 28th & March 1st 201315th Annual Structured Trade and ExportFinance in the Americas ConferenceThe Biltmore at Coral Gables, Miami

March 13th & 14th 20136th Annual Structured Trade and ExportFinance in Russia/CIS ConferenceThe Hotel Kempinski, Moscow

May 13th & 14th 20134th Annual Global Export Finance WashingtonConference

June 13th & 14th 201310th Annual Global Commodities FinanceConference

September 13th & 14th 20137th Annual Trade and Commodity Finance inBrazil Conference

September 13th & 14th 20134th Annual Structured Trade and ExportFinance in Africa Conference

November 6th & 7th 2012The 5th Annual Brazilian Energy andInfrastructure Finance ConferenceThe Tivoli Hotel, Sao Paulo

January 16th & 17th 20134th Annual Canadian Power FinanceConferenceThe Fairmont Royal York Hotel, Toronto

February 13th & 14th 20138th Annual US Power & Renewable FinanceConferenceThe Westin Times Square, New York

March 27th & 28th 20136th Annual Turkey Energy and InfrastructureFinance ConferenceThe Mövenpick, Istanbul

May 13th & 14th 20133rd Annual Infrastructure and Energy FinanceWest Conference

September 1st & 2nd 2013The 8th Annual North American Energy andInfrastructure Finance Conference

For more information please visit www.euromoneyseminars.com or call ourevents team on +44(0) 20 7779 7222 or email [email protected]

Forthcoming 2012-2013 eventsThe perfect mix of market insight and networking

TRADE FINANCE EVENTS PROJECT FINANCE EVENTS

EditorialForeword – Vikram Pandit 3Global outlook – Valentino Gallo 12Americas outlook – Ae Kyong Chung 17Asia-Pacific outlook – Sumanta Panigrahi 24EMEA outlook – Alex C. Taylor 30Japan outlook – Yohei Yumoto 37Project finance – Myrjam Tschoeke 42

Export Credit Agencies

Argentina 48Banco de Inversión y Comercio Exterior (BICE)

Australia 51Export Finance and Insurance Corporation (EFIC)

Austria 61Oesterreichische Kontrollbank Aktiengesellschaft (OeKB)

Barbados 65Central Bank of Barbados

Belarus 68Eximgarant of Belarus

Belgium 69Office National du Ducroire (ONDD)

Brazil 72BNDES-EximSeguradora Brasileira de Credito a Exportacao (SBCE)

Canada 75Export Development Canada (EDC)

China 78China Export and Credit Insurance Corporation (SINOSURE)The Export-Import Bank of China

Colombia 84Fondo Nacional de Garantias (FNG)Banco de Comercio Exterior de Colombia (Bancoldex)

Croatia 87Croatian Bank for Reconstruction and Development (HBOR)


ContentsThe Citi World Official Agency Guide 2012-2013

CONTENTS

FINANCIAL INTELLIGENCE FOR GLOBAL TRADE

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FREETRIAL

Czech Republic 91Export Guarantee and Insurance Corporation (EGAP)Czech Export Bank

Denmark 96Eksport Kredit Fonden (EKF)

Egypt 99Export Credit Guarantee Company of Egypt (ECGE)

Estonia 101KredEx Credit Insurance Ltd (KredEx)

Finland 102Finnvera and Finnish Export Credit

France 105Compagnie Française d’Assurance pour le Commerce Exterieur (Coface)

Germany 107Euler Hermes Kreditversicherungs-AG

Greece 111Export Credit Insurance Organization (ECIO)

Hong Kong 113Hong Kong Export Credit Insurance Corporation (ECIC)

Hungary 114Hungarian Export Credit Insurance (MEHIB)Hungarian Export-Import Bank Ltd (Eximbank)

India 118Export Credit Guarantee Corporation of India (ECGC)Export Import Bank of India (I-Eximbank)

Indonesia 127Asuransi Ekspor Indonesia (ASEI)

Iran 129Export Development Bank of Iran (EDBI)Export Guarantee Fund of Iran (EGFI)

Israel 133The Israel Export Insurance Corporation (ASHR’A)

Italy 137Istituto per i Servizi Assicurativi e il Credito all’Esportazione (SACE)Società Italiana per le Imprese all’Estero (Simest)

Jamaica 145National Export-Import Bank of Jamaica (EXIM Bank, Jamaica)



For more information contact Cezar Rozmus on +44 (0) 207 779 8032 or email [email protected]

Visit WWW.TRADEFINANCEMAGAZINE.COM/ECA

Sign up and receive:

Bringing you the mostcomprehensive review ofall ECA fi nancing activity

ECA Newsletter www.tradefi nancemagazine.com/ECA


ECA NEWSLETTER

Japan 148Japan Bank for International Cooperation (JBIC)Nippon Export and Investment Insurance (NEXI)

Jordan 153Jordan Loan Guarantee Corporation (JLCG)

Kazakhstan 156Eximbank Kazakhstan

Luxembourg 157Office du Ducroire (ODL)

Malaysia 160Export-Import Bank of Malaysia Berhad

Mexico 163Banco Nacional de Comercio Exterior (Bancomext)

Netherlands 165Atradius

New Zealand 168The New Zealand Export Credit Office (NZECO)

Nigeria 170Nigerian Export-Import Bank (NEXIM)

Norway 173Norwegian Guarantee Institute for Export Credits (GIEK)Eksportkreditt NorgeEksportfinans

Oman 180Export Credit Guarantee Agency (ECGA)

Pakistan 181Pakistan Insurance Corporation

Philippines 182Philippine Export-Import Credit Agency (PhilEXIM)

Poland 184Export Credit Insurance Corporation (KUKE)

Portugal 193Companhia de Seguro de Créditos (Cosec)

Romania 196Eximbank of Romania

Russian Federation 199EXIAR



Serbia 200AOFI – Export Credit and Insurance Agency of the Republic of Serbia

Slovak Republic 203Export-Import Bank of the Slovak Republic (EXIMBANKA)

Slovenia 207SID – Slovene Export and Development Bank

South Africa 211Credit Guarantee Insurance Corporation of Africa (CGIC)Export Credit Insurance Company of South Africa (ECIC)

South Korea 214Korea Trade Insurance Corporation (K-sure)Export-Import Bank of Korea (Korea Eximbank)

Spain 219Compañía Española de Seguros de Crédito a la Exportación (CESCE)Instituto de Credito Oficial (ICO)

Sri Lanka 222Sri Lanka Export Credit Insurance Corporation (SLECIC)

Sweden 226EKN Exportkreditnämnden (EKN)

Switzerland 228Swiss Export Risk Insurance (SERV)

Taiwan 230The Export-Import Bank of the Republic of China (T-Eximbank)

Thailand 232Export-Import Bank of Thailand (Thai Ex-Im)

Trinidad and Tobago 236Export-Import Bank of Trinidad & Tobago (Eximbank)

Turkey 239Export Credit Bank of Turkey (Turk Eximbank)

United Kingdom 245UK Export Finance (formerly ECGD)

United States of America 246Export-Import Bank of the United States (US Ex-Im Bank)

Uruguay 250Banco de Seguros del Estado

Uzbekistan 252Uzbekinvest National Export-Import Insurance Company (Unic)

Venezuela 255La Mundial CAV de Seguros de Crédito (La Mundial)


Cont

ents




Development and Multilateral Finance Institutions (DFIs & MFIs)ADB (Asian Development Bank) 258AfDB (African Development Bank) 261Afreximbank (African Export-Import Bank) 264ATI/ACA (African Trade Insurance Agency 267BIO (Belgian Investment Company for Developing Countries) 270Bladex (Banco LatinoAmericano de Exportaciones) 271BSTDB (Black Sea Trade and Development Bank) 273CABEI (Central American Bank for Economic Integration) 277CAF (Corporación Andina de Fomento) 279CDB (China Development Bank) 281CDC (CDC Group) 282COFIDE (Corporación Financiera de Desarrollo) 283COFIDES (Compañía Española de Financiación del Desarrollo) 285DEG (Deutsche Investitions- und Entwicklungsgesellschaft) 287DHAMAN (Arab Investment and Export Credit Guarantee Corporation) 288EBRD (European Bank for Reconstruction and Development) 291EIB (European Investment Bank) 293Finnfund (Finnish Fund for Industrial Cooperation Ltd) 297FMO (Netherlands Development Finance Company) 299GuarantCo (Guarantees for Development) 301IADB (Inter-American Development Bank) 303ICIEC (Islamic Corporation for the Insurance of Investment and Export Credit) 308IFC (International Finance Corporation) 313ITFC (International Islamic Trade Finance Corporation) 315KfW (KfW IPEX-Bank) 317MIGA (Multilateral Investment Guarantee Agency) 319NIB (Nordic Investment Bank) 322Norfund (The Norwegian Investment Fund for Developing Countries) 325OeEB (Oesterreichische Entwicklungsbank) 327OFID (OPEC Fund for International Development) 329OPIC (Overseas Private Investment Corporation) 331PEFCO (Private Export Funding Corporation) 333PROPARCO 335SEK (Svensk Exportkredit ) 337SEP (Saudi Export Programme) 338SIMEST (Società Italiana per le Imprese all’Estero) 340SOFID (Sociedade para o Financiamento do Desenvolvimento) 342Swedfund (Swedfund International) 343Vnesheconombank (Bank for Development and Foreign Economic Affairs) 344

Peering into the prism of events that have shaped theworld of global trade finance over the past year – andwill shape it for the foreseeable future – we see afusion of recurring themes and new opportunities, aspartnerships among trading partners, official agencies,banks and investors come into focus.

The persistent themes spanning export financeactivities around the globe continue to be the growthof developing countries as exporters, the influence ofBasel III on bank lending, and the financing demandsof certain industries, such as transportation and

energy, in addition to lingering economic uncertainties in key markets.Most recently, economic turmoil and sovereign debt concerns in theeurozone in particular have blemished the trade finance landscape. Acloser look at all of these industry-defining trends reveals that thecommon beam that runs through them is liquidity, where it is and how tounlock it to keep goods flowing freely between exporters and importers.

EuropeOne of the most consequential developments during the past 12 monthshas been the economic woes of Europe and the plight of its banks.Financial turbulence, combined with mixed responses to regulatorychanges, has created a competitive gap between the export credit systemsof Europe and those of the other regions.

Faced with liquidity pressures, major trade banks in Europe that used their


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okThe Citi World Official Agency Guide 2012-2013

By Valentino Gallo, Global Head of Export and Agency Finance, Citi

As always, liquidity shapesexport financing strategies

Valentino GalloGlobal Head of Export andAgency Finance, Citi

balance sheets to fund export loans are retreating from the market anddivesting their ECA (export credit agency) guaranteed assets. As theregion’s banks deleverage and deal with a lack of US dollar funding, theyare being replaced by North American and Asian counterparts who haveaccess to dollar-denominated deposits and funding and enjoy a morefavorable position. Rich in dollars, which continue to be the majorsettlement currency of international trade, North American and Asianinstitutions have been growing their ECA loan books through theunderwriting of new loans and secondary market purchases.

Basel III’s influenceUncertainty about Basel III’s new capital requirements also iscontributing to the liquidity headaches of banks causing the withdrawalfrom the market of some historical players. The proposed capital ratios ofBasel III, which do not favor long-tenor lending, fail to take intoconsideration the high-quality, low-risk nature of ECA-backed loans andtheir low default rates.

At the same time, Basel III’s 2015 implementation deadline is still a fewyears out and a number of proposals are on the table to amend the ratiosfor trade financing. Nevertheless, some banks are responding to pendingchanges more radically than others.


Global outlookThe Citi World Official Agency Guide 2012-2013

Role of official agenciesEurope also entered its crisis plagued by limited export financing tools, atboth national and regional levels, to address the lack of long-term fundingcapacity among its banks.

Historically, the national export credit systems of the region havedepended predominantly on commercial bank funding and lacked directlending programs among its official agencies at a moment in time whenexports were more critical than ever to stimulating its slowing nationaleconomies. And it lacked a pan-European approach.

One of the lessons learned from the financial crisis of 2008 and itslingering after effects, however, is that export finance models that featuremultiple financing instruments are the most effective.

In fact, over the past few years changes in both market circumstances andthe regulatory framework for banks have spurred new models thatdemonstrate the significance of export financing as an economic policytool and contributor to the vitality of its ecosystem. Thus, exporters,importers, contractors, banks, investors, legal experts and a vastcommunity of agency and policy officials have been collaborating todefine new models and financing programmes.

Together, they are proposing new forms of collaboration, whose success inone market can readily be transferred to, or adapted in, other markets.

Adopting new modelsIn the US, the system benefits today from a set of financing tools thatincludes direct lending programmes, competitive guarantees forcommercial bank funding, and also competitive guarantee programmesfor the capital markets. This scenario is the result of several ground-breaking programmes introduced in recent years by the US ExportImport Bank (US Ex-Im).

They include a bond guarantee programme that gave buyers of USaircraft, and more recently other selected goods and services, access tocapital markets funding at costs significantly inside those available in thebank market. US Ex-Im also introduced a put-option programme that‘liquidised’ long-term financings at a time when liquidity was extremelyscarce, unlocking bank funding that otherwise would not have beenavailable.


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These programmes created a market advantage for US exporters,providing them with credit solutions that are inaccessible to many of theirtraditional Western competitors.

That said, the export credit agencies of Europe have made some stridestoward responding to the new market realities, introducing direct lending,new refinancing programmes for banks, and programs for capital marketsinvestors.

In the Nordic region, for instance, the ECAs of Norway, Denmark,Sweden and Finland strengthened existing agency-owned long-termfunding and refinancing vehicles to banks, giving them access to fundingin either US dollars or euros at attractive terms.

In the UK, ECGD made available a bond guarantee for aircraft financingthat resembles the one used by the US Ex-Im. Coface of France recentlyannounced that it will launch a similar bond guarantee for capital marketsinvestors that will initially be used in the aircraft sector. EKF in Denmark


Global outlookThe Citi World Official Agency Guide 2012-2013

also have developed schemes that tap the funding capacity of institutionalinvestors.

In addition, the central banks of France and Italy have made the loansguaranteed by Coface and Sace eligible for refinancing at their discountwindows, a move that in essence matches the policy of the US FederalReserve which accepts US Ex-Im guaranteed loans at its discountwindow. Access to the discount window is significant because exportcredits are a more attractive investment for bank treasurers from a liquiditystandpoint if regulators approve their inclusion in the liquidity-coverageratio of loans eligible for refinancing with the central bank.

Next stepsGenerally speaking, initiatives being taken across Europe are effectivelyalleviating banks’ liquidity problems related to export financings, openingup the export credit system, and showcasing the asset class to new,alternative investor groups.

However, additional measures could be taken. The ECA-guaranteedbonds introduced in the US should be embraced by a larger number ofECAs, especially those that enjoy the highest risk rating. In addition thistype of financing structure should be expanded beyond aircraft financingto include other sectors, particularly project financing. And therefinancing programmes for banks introduced in Northern Europe haveproven to be an effective liquidity tool which could be utilised by theagencies of other regions.

Looking forward, new capital markets solutions that tap the fundingcapabilities of liquidity-rich institutional investors represent a way toincrease the attractiveness of long-tenor financings among banks troubledby the proposed capital ratios of Basel III.

The turbulent market that has dominated the trade financing landscapefor some time makes it crystal clear that innovation and adaption are anecessity for all export credit system stakeholders and market participants.

Their joint efforts provide the key to stimulating both global trade andvibrant economies. ■


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Due largely to the ongoing scarcity and resultingpriciness of commercial lending worldwide, the lastfour years have seen tremendous growth in exportcredit agency (ECA) financing worldwide includingNorth America. As an example, we have seen theleading ECA, US Ex-Im Bank (US Ex-Im), increaseits authorisations from $14.4 billion in FY2008 to$32.7 billion in FY2011. The bank expects to seeanother significant increase in authorisations, north of$35 billion, this year. And Citi, a key market player, hasexperienced parallel growth trend that reflects thegrowth of the ECAs with more than a 50% increase

in loans arranged during this period. Clearly, there is robust marketdemand for ECA borrowing.

Those statistics should come as little surprise. ECA financing in NorthAmerica represents a marketplace win-win. In today’s costly andconstricted credit landscape, it gives borrowers an alternative financingsource. And for investors facing a low-yield environment, ECA financinghas emerged as a solid way to gain entry to investment opportunitiesbeyond their national borders.

While the ECA market is currently strong, however, its continued positiveperformance is potentially imperiled by two threatening storm clouds:liquidity constraints created by the ongoing eurozone crisis, andregulatory constraints created by Basel III.


Americas outlook


By Ae Kyong Chung, Americas Head, Export and Agency Finance,Citi, New York

For North America ECA financing – sunny today, cloudsin the forecast

Ae Kyong ChungAmericas Head, Export and Agency Finance, Citi

The eurozone effectThe first major issue affecting the marketplace is the ongoing tenuouscondition of Europe’s economy and the trickle down effect it has createdin its banking sector. Traditionally, ECA financing has been activelysupported by European banks. But because of challenges faced byEuropean sovereigns, those banks are affected in numerous ways – mostnotably by the high cost of funding. The continent’s sovereign issues arehaving an impact around the globe, with a crossover, filtered-down effecton lending as a whole worldwide.

Contributing to the crisis which hinges on the ‘denominator’ effect – is,tier-one capital. Europe’s banks have initiated a concerted effort to de-lever in order to comply with new capitalisation targets, and many ofthem are selling portfolio assets to ensure they come in under Basel III’simminent ceiling on leverage ratios. The Global Financial StabilityReport published in April 2012 by the IMF suggests that the Europeanbanks may need to reduce their assets anywhere between $2.2 trillion to$3.8 trillion in the next 18 months.

In the meantime, however, banks’ purse strings remain understandablytight. Bankers who traditionally supported ECA financing and capitalflow between exporters and buyers are now far more cautious, and thecost of credit has thus risen substantially.

Combine that obstacle with thesecond major ECA market issue –Basel III regulations capping thelevel of assets that can be placed onbalance sheets – and global bankassets are severely constrained.

The Basel III effectRegulatory issues have always been akey factor in the ECA realm. Butnone are more daunting than thespecter of Basel III, the moststringent in a series of ever-tightening government regulationsin the aftermath of the 2008-2009global liquidity crisis. There is nobank anywhere in the world that is


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Contributions to aggregate reduction in bank assets, three policy scenarios

not affected by it. While Basel III will be phased in over a six-year period,banks are already preparing for a big change from the comparatively tameregulations of its predecessors, Basel I and Basel II.

Previous Basel regulations featured a special ‘carve-out’ provision forECAs: a sovereign agency guarantee that translated to zero capital chargeson assets – a compelling differentiator in the marketplace. Basel was oncea blunt instrument that worked well in a pre-crisis world. It did notaddress counterparty risk or concerns about liquidity. It didn’t measurethe leverage ratios and stable funding ratios which match assets andliabilities, ensuring that banks have sufficient liquidity to support the assetsthey put on their balance sheets. Under previous iterations of Basel, noneof these factors impeded ECA banks in their activities.

That was then; this is now. With worldwide liquidity concerns abated but certainly not erased, Basel III strictly regulates capital thresholds in an effort to avoid another crisis. Most significantly for the ECA market,Basel III eliminates its predecessors’ carve-out and resultant market-differentiating sovereign guarantee. That creates a negative impact on theECA business, because ECA bank assets are now competing with


Americas outlook


Basel III impact on banks’ balance sheet – Accenture research report

unsupported, unguaranteed long-term assets that yield much higher thanthe higher credit ECA-guaranteed loans.

North American banks will undoubtedly be affected by Basel IIIregulations. While European regulators are currently in the process ofdetermining interpretations of leverage ratios and allowable additions tonumerators and/or denominators, North American regulators have notyet joined the process. As of now, there is no real clarity in the US andCanada as to how each country’s respective regulators will interpret someof the new provisions.

Restoring guarantees, reducing pricesOver the past year, concern over the potentially negative impact of BaselIII has been voiced both by agencies and by banks participating in theECA market. In light of the fact that the GDPs of so many countries –particularly the US and European nations – are stuck at a very low oreven negative growth, all players are acutely aware of Basel III’sconsequences on export financing, support of exporters, and the overallglobal economy.


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Basel III impact on banks’ balance sheet – McKinsey research report

Additionally with the slowdown in the Chinese economy, once vibranteconomies in Asia are also seeing anaemic growth prospects. Since exportgrowth is a priority for nearly all agencies and their banks, definitive stepsare being taken to counter the effects of Basel III, and more specifically, torestore the market-differentiating agency guarantee that is threatened bythe new regulations.

Consider, for instance, the actions of US Ex-Im. One of few ECAs withdirect lending capabilities, the agency had always been self-sufficient,funding transactions directlywhen requested. During theliquidity crisis, however, theagency discovered direct lendingitself was insufficient to meet thedemands of the borrowers andthe market, so it began teamingup with banks like Citi andothers to construct a capitalmarket structure to restore itsguaranteed lending feature. Thestrategy turned out to beprescient, given Basel III’spending elimination of agencies’sovereign guarantee carve-out.

Today, US Ex-Im can provide a100% guarantee and structuretransactions in which guaranteedbonds can be issued successfully.That has served to reduce thepricing of Ex-Im-guaranteedloans (compared to 2008-2009,when loan pricing approachedthe 125-135 basis point range). As the market adjusted to a new structureof capital lending, and institutional investors began taking advantage ofUS Ex-Im-guaranteed loans, pricing rapidly came down.

This downward trend continued through 2011 and into 2012. We areseeing renewed efforts by US Ex-Im in cultivating the capital marketsstructures. Their latest efforts in this area is to approve a prefundingstructure whereby the borrowers can bypass utilising bank lending


Americas outlook


Most significantly for the ECAmarket, Basel III eliminates itspredecessors’ carve-out andresultant market-differentiatingsovereign guarantee. That createsa negative impact on the ECAbusiness, because ECA bank assetsare now competing withunsupported, unguaranteed long-term assets that yield much higherthan the higher credit ECAguaranteed loans.

altogether and lock in funding directly with the institutional investors.Some borrowers have already taken advantage of this structure and haveexecuted prefunding with vary advantageous pricing. ECGD and Cofacehave both announced their interest in seeing this structure move forward.

Many banks are still justifiably concerned about how both Basel III andthe European crisis are creating difficulty in obtaining dollar funding.

Unable to place assets on theirbalance sheets, these banks arelooking for ways to distributeloans. A capital markets bondstructure to respond to Basel III’sregulatory constraints and theeurozone’s capital issues has beena way to address these concerns.Diversifying away from bankfunding to capital marketfunding has helped open upassets to more ECA financing ingeneral.

As a result of all this, ECAs inNorth America haveexperienced robust growth overthe last three few years. There isno way that banks in today'sworld could achieve this growthsimply by putting assets on their

balance sheets; it was important to open a different access point to deliverthat investor base.

Proactive, positive, permanent actionThe measures taken by banks and agencies to anticipate and respond toBasel III and the eurozone crisis have been impressive. But they are short-term fixes at best. For a more lasting, long-term solution, a sea change isrequired in the way ECA practitioners think about funding. The days ofrelying on bank lending – with banks having the luxury to amass billionsof ECA assets on their balance sheets – are officially over.

The overriding market issue today is no longer one of credit risk; it hasbecome one of asset funding. In this ‘new ECA normal’, the North


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The measures taken by banks and agencies to anticipate andrespond to Basel III and theeurozone crisis have beenimpressive. But they are short-termfixes at best. For a more lasting,long-term solution, a sea change isrequired in the way ECApractitioners think about funding.

American market must find new avenues of distribution. All agenciesneed to demonstrate an eagerness and commitment to finding creativesolutions to the challenges faced by the ECA market. After all, everyone isboth acutely aware of and undeniably affected by the current state ofaffairs.

Proactive, positive, permanent action is required. Global agencies andmajor banks must come together in the spirit of collaboration. Since nosingle bank or country has any clear advantage over any other, thesolution must be a coordinated response and concerted effort to findsolutions, which take multiple forms. Among them:

• Banks, ECAs and other key participants need to assemble andidentify a carve-out for ECA financing under Basel III, one whichrecognises that a sovereign direct guarantee requires special treatment under the Basel calculation. If global trade flows were toprosper along with each nation's exports and job growth, there mustbe a special recognition for the importance of ECA guaranteedassets.

• Similar to what was done with trade finance where with the auspicesof ADB and ICC, trade default registry was set up to collect data,there are currently efforts to collect similar data for the export creditsector. Responsibility lies with all of us who are market participantsin the ECA market to ensure we cooperate and support this effortwhich is a first step towards demonstrating the low risk nature of thisasset class.

• The oft-discussed new mechanism for ECA guaranteed loans mustfinally be established, to ensure and maintain liquidity of assets. Aglobal clearinghouse, for example, could ensure a secondary marketfor asset purchase and sales. Then the originator of assets, armed withthe assurance that an asset is liquid, can go back to its creditcommittee with an AA or AAA rating.

A positive sign is that movement is already in the works. Banks andagencies have been talking for the last two years about ways to address theliquidity issues. While there is no consensus answer yet, the stakes are toolarge for the problem to remain unsolved for very much longer. ■


Americas outlook


For most of the first decade of this millennium, Asia,with its steady and sustained growth rates, has been theglobal growth engine and has provided some stabilityto the global outlook. However, as we navigatethrough the second decade of this millennium and inthe aftermath of the global financial crisis (GFC),markets and economies are being continually rockedby shocks. Governments, regulators and central banksare introducing a multitude of policies in an effort tostabilise markets. Markets however continue tooscillate, reacting to even mildly positive economic

data and then running out of steam as pessimism overtakes optimism. Asgrowth rates fluctuate, and currencies yo-yo in wider bands, costs becomeunpredictable, affecting exports, volatility therefore is the new norm!


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By Sumanta Panigrahi, Asia-Pacific Head, Export & Agency Finance,Citi in Hong Kong

Navigating through volatility –the new norm!

Sumanta PanigrahiAsia-Pacific Head, Export & Agency Finance,Citi

Figure 1: Trends in GDP growth scales

Source: World Bank

A flurry of economic stimulus packages and policy support for thefinancial system will perhaps soften the landing for most Asian economies.Economic growth rates in the 7%-8% range for China and 5%-6% rangefor India is perhaps more sustainable in the near and medium term.

For most Asian economies, exports remain the key economic driver –goods out of China and Korea, services out of India and commodities outof Indonesia, Australia and Vietnam. Exports contribute over 52% ofKorea’s and 29% of China’s economies, respectively. The dominance ofexports as a key driver will continue, but rising cost structure in thetraditional export centres are pushing out supply chains to a wider baseacross some of the newer emerging economies in Asia such as Vietnam,Cambodia, Bangladesh, Sri Lanka and potentially Myanmar in the future.A more dispersed supply chain with perhaps more links and touchpointsacross Asia is the emerging theme and another new norm.

With most import centres in Europe and Americas struggling to comeout of recession, domestic demand will likely open up the next phase asan economic driver of growth. Markets in China, India and Indonesiawith three billion people, and burgeoning middle class (refer to Figure 2:Share of Global Middle Class Consumption, 2000-2050), will be targetedfor consumption growth. Australia, Canada and Brazil, which rely heavilyon commodity exports, increasingly see Asia as the consuming destinationfor their soft and hard commodities – be it soybeans and iron-ore fromBrazil, or oil from Canada or LNG, coal, iron-ore or offshore oil from


Asia-Pacific outlookThe Citi World Official Agency Guide 2012-2013

Figure 2: Share of global middle class consumption, 2000-2050

Source: World Bank

Australia. Resource hungry economies of China, India, Vietnam andIndonesia will constitute key demand centres for global output in thisdecade.

Intra-Asia investment and support has been the specific focus for theuntied programmes of the Asian agencies in China, Korea and Japan forstrategic projects across the region. Citi is currently arranging a financingfor a major SOE in Vietnam where Nippon Export Import Corporation issupporting a $300 million facility for construction of an aluminaproduction facility in Vietnam. The agency’s support is based on their‘untied’ programme supporting a long term offtake arrangement by amajor Japanese trading house.

As Asia grows, albeit at a slower pace compared to the last decade, thefocus on infrastructure development will continue to take centre stage.Infrastructure spend continues to be a mix of ‘catch up’ and ‘growth-oriented’. Especially in South Asia, where infrastructure continues toseverely stymie development, the need for investment continues to bemassive. In the case of North Asian economies where the level ofinfrastructure development is relatively advanced, governments continueto invest heavily in order to incite domestic growth in an effort to balanceeconomic activity as in the case of China, or support increased growth ingeneral. China recently approved an additional RMB1 trillion ofinfrastructure spend, amounting to 2.1% of the total economy.

Whether it is catch-up or growth oriented infrastructure spend, a high


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Figure 3: Infrastructure spending forecast of emerging markets from 2008 to 2017 (US$ trillion)

Source: Statista

level investment in this segment is an immediate priority. Availability oflong term ECA supported financing support will be the key criteria forsuccessful implementation of these projects. Leveraging on this significantfocus on EAF solutions, we have renewed our commitment and focus onlarge project financing in the key markets in the region. Examples offinancing support provided by Citi include a $200 million facility forVietnam Development Bank closed in 2011 for financing a major roadproject supporting a major industrial centre.

Unprecedented levels of currency volatility has emerged as the newconstant over the past few years. Through a combination of factors Asiancurrencies volatility has been driven by high inflation, fluctuating growthand flight to the only truly global currency of choice for world trade. Inorder to insulate the drivers and balance sheets from excessive exposure tocurrency volatility risks, borrowers are increasingly focused on naturallymatching their financing currencies with cashflows.

Therefore it is inevitable that there is increasing focus and reliance onlocal currency and domestic capital markets for meeting their short-termand long-term financing needs.



Figure 4: Recent volitility in Asian currencies

Source: Bloomsberg

China’s efforts on this front, whetherit is its focus on rapid international -isation of the RMB as the fastestgrowing emerging market currencyglobally, or its focus on rapidlydeveloping its thus far fledglingcorporate bond market, are highlycommendable. Similarly, thedevelopment of the domestic capitalmarkets across Malaysia, Thailand,India and Indonesia has been rapidand consistent. Official agenciescontinue to support such efforts as afacilitator and enhancer. Citi haspartnered with OPIC in facilitatinglocal currency solutions for its clientsin Indonesia and Sri Lanka. We seethis as an increasing trend in thecoming years.

As Asian economies continue topursue energy and resource security,investment and financing support forresource and mining projects willcontinue to be high priority. Japan’sshift to non-nuclear sources of

energy is driving Australia’s LNG demand and there are a number ofmega projects under development in this sector.

Citi helped finance some of these projects, including Gladstone LNGfinancing for Santos and Ichthys LNG, spanning the entire LNG chain,with a project size of $42 billion. Over 24 LNG projects at an estimatedcost of $180 billion are under implementation in Australia, with anestimated financing requirement of approximately $150 billion. Miningprojects for coal, iron-ore, etc. are seeing similar trends not only in thetraditional centres such as Indonesia, Australia and China, but also innewer centres in Asia – Mongolia and Papua New Guinea.


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Figure 5a : China LCY bond market growth

Figure 5b: China LCY bond market growth

Source: Citi

Source: Citi

We are therefore going through what can be described as a paradigm shiftin the global financial markets;

• increased and sustained levels of market volatility becoming a nearpermanent feature;

• reconfiguration of key players in the financial markets due to theEuropean banks stepping back due to deleveraging requirements;

• sustained level of high investment requirements due to largeinfrastructure spend and reorientation towards the Asian middle classdemand centres; and

• drive towards resource security through long term offtake andsupporting investment.

As we work with partners in export credit agencies and other officialagencies in navigating through the changing drivers and help our clientmeet their financing requirements and objectives, tapping and facilitatingalternative sourcing of funding isgoing to be key in optimisingsolutions.

The domestic and internationalcapital markets provide sustainablesources of long term funding andCiti is leading this effort inproviding and facilitating thisaccess. Examples of such trans -actions include a number of ECAfinancings that Citi is leading,aggregating $650 million forAsian airlines in China andMalaysia, which are structured to be issued in the capital markets, therebychurning and releasing bank lines which can be used for conventionalproducts, while simultaneously reducing costs for the borrower. Anothereffort that Citi is leading involves chanelling ECA-supported transactionsto investors in the insurance and pension fund businesses. These are naturalsources of long-term funding. Adapting to uncertainty and volatility, bothof which have become the ‘new norm’ in today’s market, are key to successand continued growth. ■



As we work with partners in export creditagencies and other official agencies innavigating through the changing driversand help our client meet their financingrequirements and objectives, tapping andfacilitating alternative sourcing of fundingis going to be key in optimising solutions.

The current climate of opaqueness and uncertaintyhas led many to claim the counter cyclical role ofexport credit agencies (ECAs) has caused aninevitable surge in demand for the services providedby them and developmental finance institutions(DFIs). Indeed, demand for medium and long termECA financing is approximately 50% above pre-crisislevels.

However, to accept that the rise of ECA financing ineconomically-strained times is wholly attributable to

liquidity shortages in other markets is to neglect the innovative workalready conducted in the ECA sector. The agencies have managed diversifytheir funding sources at a time when their traditional funding sources areon the wane. Structures have been developed to increase fundingprogrammes, widen the investor base, foray into capital markets, andexpand traditional businesses. All these strategies have contributed to ECAfinancing’s continuing relevance in the current era of market dislocation.

The volume of world trade increased by 5% in 20111. Furthermore,Berne Union members insured $1.7 trillion worth of exports in 2011, a20% increase over 20102. These trends are exhibited and warrantparticular recognition in EMEA where factors as diverse as renewedpressure on the eurozone, North African political turmoil, ongoing


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By Alex C. Taylor, Regional Head EMEA, Export and Agency Finance, Citi

Export credit financing – anindispensable funding source

Alex C. Taylor Regional Head EMEA,Export and Agency Finance,Citi

liquidity shortages, and the continuing impact of the economic crisiswhich began in 2008 are centre stage.

Renewed pressure in the eurozone Sovereign debt crisisIn EMEA, 2012 was ushered in by Standard & Poor’s downgrading ofnine eurozone countries: a condemnation of what they perceived asinadequate policy initiatives. Ireland and Portugal are now rated ‘junk’status by Moody’s who also modified their outlook of stronger eurozonecountries such as Germany (AAA) to negative watch as of July 2012. Atthe time of press, Finland is the only eurozone country rated by Moody’sas AAA with a stable outlook. In this era of volatility, a number of thetraditional ECA lenders are currently closed for new transactions(especially with certain ECAs), and we are witnessing numerous bankswithin EMEA attempting to divest their ECA portfolios.

Impact of Basel IIIThe aim of the Basel Committee, establishing appropriate regulations forrisk management, governance, and transparency to ensure the market’sability to withstand future shocks, is shared by Citi. However, concernsremain around how these changes will affect the export credit industrygiven the unique structure of export credit deals.

Bank proclivity for ECA loans has traditionally been driven by favourablecapital treatment afforded to OECD government obligations under BaselI/II. However, it is anticipated Basel III will be less amenable to longtenor lending, and will require higher credit spreads, hence negating thecompetitive advantage ECA financing now possesses. The Net StableFunding Ratio which, at the time of publishing, is to be incorporated intoBasel III, is less welcoming to long tenor lending in the ECA financingmarket. Furthermore, the proposed Basel III liquidity ratio will notincorporate the low risk weighting of ECA-backed assets whencalculating a bank’s gross exposure and is thus also expected to inhibitdemand for export credit financing. Though Basel III is not to beimplemented until 2015, many banks have already taken steps to ensurethey are compliant. This involves shrinking their balance sheet,consequently decreasing their export credit appetite.

In view of the low rates of default associated with trade finance (andexport credit finance in particular), the Berne Union has proposed thecapital ratios for trade financing should be reviewed and amended3.


EMEA outlook


Currently, the Berne Union and the banking industry are accumulatingevidence supporting the revision of the Basel III capital ratios which theywill present to the Basel III committee.

Liquidity shortages (including US dollar shortages)At the end of 2011, the European Banking Association (EBA) stated theirmember banks must accumulate a114.7 billion ($153 billion) of extracapital to ensure their ability to withstand any further continuation of thesovereign debt crisis4. Thus, many European banks have transferred theirECA-guaranteed assets from their balance sheets as these assets, thoughhigh quality and low risk, are perceived as less liquid by certain regulators.

US dollar funding or lack thereof has also become a constraint for manyEuropean banks. Thus US and Asian banks have begun to build large ECAbooks through buying these assets in primary and secondary markets.Tangentially, many of the banks which have historically been active in theexport credit financing space are no longer funding transactions butinstead are withdrawing from their existing commitments.5


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Funding agency solutionsMany long-established banks in this field retain structuring andoperational expertise, yet currently lack long term funding capacity. It hasthus become imperative to explore new avenues of funding. The fundingprovided by the European Investment Bank (EIB) has increasedsubstantially in recent years as seen in recent transactions it has fundedwhich were guaranteed by Sace (Italy) and EKF (Denmark).Furthermore, institutional investors have significant funding capacity andnumerous export credit agencies have developed funding programmes toincorporate this new source of liquidity.

• The Danish export credit agency, EKF, has developed a programmewhere foreign corporations can obtain long tenor loans (up to 100%guaranteed by EKF) from the Danish Pension funds PFA pensionsand PensionDanmark for the purpose of buying Danish exports. Citiis currently structuring a deal using this innovative product. EKF hasalso extended their export lending scheme, ELO, which wasoriginally brought in as a temporary measure to ensure Danishexport loans of longer tenor would remain available at competitiverates. Citi acted as sole lead arranger and facility agent for twoseparate facilities totalling a292.2 million which were 95% EKF-guaranteed and 100% ELO-funded. These facilities were for EnelGreen Power to purchase turbines from Vestas and Siemens for thedevelopment of their wind farms in Romania, USA, and Brazil

• The German development bank, KfW-IPEX, offers an establishedprogramme through which they refinance to commercial bankscontingent on the banks possessing securitisation guarantees fromHermes. We have noted a marked increase in demand to utilise it inrecent years

• The Norwegian ECA, Ekstportfinans, is being wound down as itsfunding structure is incompatible with the current climate. Citiadvised the Norwegian Ministry of Trade and Industry how tostructure the new funding agency, Eksportkreditt Norge AS, toensure the foibles inherent in Eksportfinans were amended. Citiinvestigated the funding and pricing structure of a wide variety ofagencies to ensure the model for the new Norwegian fundingagency, which is 100% state-owned, is both conducive to the currentclimate and market-fair


EMEA outlook


• Export credit agency Guaranteed Bonds similar to those used by USEx-Im, are being issued by UK Export Finance (formerly ECGD) ofthe United Kingdom and are being developed by Coface of France

• The Finnish ECA, Finnish Export Credit (FEC), established aTemporary Crisis Response Product in 2009. In 2012, FEC unveiledthe details of its new funding scheme which will have Finnveraperform a capital markets issuance to fund a a3 billion lendingfacility. Citi played a key role in financing the purchase of two vesselsby Tui Cruises. The first vessel was financed via the temporaryfunding scheme and Citi was also recently mandated to act as leadarranger to finance a second vessel via the new financing scheme

Russia • Citi has observed the continued rise in the volumes of ECA backed

transactions for Russian imports, particularly in the Aviation space.For example, Citi acted as the lead arranger for a $256 millionHermes-backed facility for Aeroflot and a $163 million Hermes-backed facility for VEB Leasing

• There has also been an increased interest within Russia to promotetheir exports as evinced by the establishment of the ExportInsurance Agency of Russia (Exiar) in October 2011. Though in theearly stages of development, the Exiar mandate signals Russia’sintention to reflect the mandate of the OECD consensus

Aviation • The demand for aviation financing remains high, and ECAs

continue to play an important role, covering 27% of Boeing andAirbus deliveries in 20116. However, many of the banks with therelevant structuring expertise currently lack the capacity to financethese deals, leaving a small number of banks with both the requisiteindustry knowledge and funding capabilities. Innovative structureshave thus been developed to close this funding gap.

• The increase in the volumes of ECA-supported financing has beenaccompanied by increased debate regarding the ‘home countriesagreement’. This agreement prevents airlines operating in the fivehome countries of Boeing and Airbus (USA, France, Germany, UK,and Spain) from receiving export credit agency support for purchasesof Boeing or Airbus aircraft. Airlines operating in the home countries


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claim this agreement put them at a disadvantage to the non homecountry airlines. However, in December 2011, Air France financedtheir purchase of an Airbus A380 using a bridge loan which wasrepaid using an export credit loan guaranteed by UK Export Financeand Euler Hermes. Several months later Air France purchased anadditional A380 using a similar structure. Both of these financingswere exceptions to the home country agreement.

• The impact of the Aviation Sector Understanding of 2011 is still tobe seen. However, given that it mandates significantly increasedpremiums, the Understanding is expected to decrease the appetite ofsuch financing for airlines with access to other forms of funding inaddition to neutralising the home country airlines ‘disadvantage’.

Shipping • Traditionally, official agencies have been a stable source of long term

shipping financing. Their prominence has grown post-2007 whileactivity in the bond and corporate debt markets has decreased.


EMEA outlook


• Shipping as a sector continues to require significant financing.However, shipping is not a single unified sector: it is anamalgamation of cruise, dry bulk, tanker, container and offshoreservices. The ECA focus has shifted from the traditional sectors tothe offshore sector. In January 2012, Citi was the mandated leadarranger for, amongst others, two separate offshore drilling deals: a$800 million facility for Eni S.p.A to purchase a deep water semi subdrilling rig and a $275 million facility for Seadrill Ltd to purchase adeep water semi sub drilling rig. In both instances Citi, leveraging itsdepth of experience and reputation within the industry, was able tocraft funding solutions by increasing its GIEK financing exposure.This ensured these companies could progress with these essentialprojects.

• Similarly, Citi has seen a sudden surge in demand for LiquefiedNatural Gas Carriers as the LNG market begins to expand.

Outlook and conclusionOver the past five years, the role of export credit finance has changedvastly: globally $68 billion of ECA financing was arranged in 2011compared to $48 billion in 2008. Rather than a ‘Lender of Last Resort’,our customers perceive export credit financing as an indispensablefunding source. Since the onset of the financial crisis in 2008, largeinvestment grade companies with access to bond markets havedemonstrated a proclivity to hold significant portions of their debt inECA guaranteed facilities. Indeed the United States was the single largestsource of medium and long term new business in 2011. This newmindset can be attributed to the favourable tenors and risk ratingadvantages offered by ECA financing.

The ongoing impact of the financial crisis, European sovereign debt crisisand instability in North Africa all ensure the macroeconomic tumult willnot wane. As such, we believe our clients will continue to look to theECAs and their partner institutions to safeguard both their access to stablefunding sources and their ability to diversify risk irrespective of marketconditions. ■

NOTES:

1,2,3,5,7 Source: Berne Union Yearbook 2012.4 Source: Bloomberg.6 Source: Trade Finance Magazine.


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When I met one of our clients in the shippingindustry the other day, the customer said: “Japan is theworst place of manufacturing goods.” The strongJapanese yen, high corporate tax rate, shortage ofelectricity after Fukushima nuclear disaster and weakdomestic consumption, pushed Japanese companies toa standstill. In addition Japanese policy makers do notmake quick decisions to join global free tradeframeworks (such as the Trans-Pacific StrategicEconomic Partnership Agreement) with majoremerging and developed economies, due to politicalsensitivities in the agricultural sector. As a result,

Japanese companies are losing their strong foothold in the internationalmarket. On the other hand, Korean and Chinese competitors are gainingpower and confidence.

Just one decade ago, Japanese flagged Hinomaru companies dominatedhigh technological products such as semi-conductors and liquid crystaldisplays (LCD) and Japan was number one in these sectors. However, adecade later, we are unable to see Himomaru companies any more inthose key products building market share globally.

In order to survive this tough environment, more and more Japanesecompanies are shifting production/sales functions to overseas countries.According to the Monthly Report of Prospects for Japan’s Economy –


Japan outlookThe Citi World Official Agency Guide 2012-2013

By Yohei Yumoto, Japan Head, Export and Agency Finance, Citi

The Japanese economy – will the sun rise again?

Yohei YumotoJapan Head, Export andAgency Finance, Citi

March 2012 published by The Japan Research Institute Limited, overseasproduction ratio in the Japanese manufacturing sector has reached around20% in 2012 and this ratio will surely increase in the future.

Some industries go much ahead of this trend. For example, Suzuki MotorCorporation, Japan’s second-largest manufacturer of small cars and trucks,produced 1,781,936 vehicles in overseas countries – mainly in India – butalso produced 1,020,456 vehicles in Japan during the fiscal year of 2011.So in terms of production volume, Suzuki has already become a non-Japanese company. As shown in the table on the next page, total overseasproduction volume of Japanese cars amounted to 13,382,390 in 2011,which is much higher than the domestic production volume of around 10million in the same period.

Likewise, a lot of manufacturers are planning to escape from Japan to seekcost-effective, demand growing, business friendly environments. Last year,Japan recorded a trade deficit, something which has not happened in thepast 20 years. People think or want to believe this is just a temporaryphenomenon caused by the large amount of LNG/crude importsfollowing the Fukushima nuclear disaster, but the above mentioned‘Escape from Japan’ paradigm shift is another root cause of this tradedeficit.

However, changing the angle from the manufacturing sector to the


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Market share by countries in large sized LCD panel production (volume base)

Data source: Shintaku (2008)

financial sector, the situation is different. Japanese banks’ status and marketshare in the world of trade finance, project finance and syndicated loanshas grown rapidly in recent years, and now Japanese banks are key majorplayers and fund providers in the international finance markets, togetherwith US banks like Citi.

Likewise, Japanese export credit agencies (ECAs) are also becoming some



Japanese Brand Automobiles Overseas Production Volume (1985-2011)

Data Source: Japan Automobile Manufacturers Association, Inc.

Middle North LatinAsia East Europe America USA America Africa Oceania Total

of the strongest agencies in the worldin terms of volume and financialstrength. Their support is inevitablefor large infrastructure, oil and gas,and mining projects globally, especiallyunder the current liquidity crisisbrought about by the Europeanfinancial turmoil.

In this context, I believe, from aJapanese ECA perspective, now is agood time to change and enhance thefunction from the traditional export

credit agencies to new styled credit agencies. Such a change could providemulti-functions to assist Japanese corporation’s overseas production,operation and investment in cooperation with major commercial playerslike Citi which has a presence in over 100 countries in the world.

Citi has closed a number of Japanese ECA deals in 2011-2012, all of whichsupport Japanese companies’ overseas activities, not only extending directloans to the Japanese affiliates, but also financing various infrastructureprojects in Vietnam, Russia and India to promote Japanese companiesinvestments, exports or purchase activities in the emerging markets.

I believe the Japanese ECA’s credit programme will be continuouslydeveloped to cope with the variety of financing needs. The new style offinancial support may include (1) local currency lending, (2)securitisation, and (3) capital market products like project bonds etc. In


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Citi’s major Japanese ECA financings in 2011 & early 2012

Japan’s trade balance in the past 26 years

Data Source: The Economist - January 14, 2012

addition, the purpose of financial support will also be widened in thefuture to cope with Japanese companies’ business demands. For example,Japanese affiliates in overseas countries (eg. India, China, Mexico,Thailand) are anxious to use the Japanese ECA programme for theirexports to other countries, and Citi is helping those clients access ECAfinancing solutions.

In the early 1980’s when I started my career in the banking community asnew graduate, I read the book ‘Japan as Number One’, published by Ezra F.Vogel, Henry Ford II Professor of the Social Science Emeritus at Harvard.At that time, many Japanese people believed Japan was leading the worldeconomically, but 20 years later, Japan has lost confidence as well as itsstrong foothold in many industries. It seems Japan is a country where thesun is setting.

However, if we keep changing and create something new in response tothe new environments, just like the tremendous efforts Japanese peopleare making to recover from the Tohoku earthquake and Tsunami disaster,Japan may be able to regain its valued position and presence in the world.I hope Citi’s ECA finance will contribute to the recovery of the Japaneseeconomy in the years to come. ■



Honda auto assembly line in the UK

The situation todayThe OECD estimates that over the next 20 years,approximately $50 trillion of investments globally willbe required for roads, water systems, energy, airportsand telecommunications. The project finance marketreported by Dealogic stemmed about $360 billion in2011. At the same time, the Berne Union reports thatexport credit agencies have supported $191 billion ofprojects globally in 2011 – trend growing. Withagency supported projects increasing in volume andone mega project chasing the next, over the last years,about 95% of all project finance deals were bankfunded and only 5% of it accessed capital markets to

meet their investment needs.

A number of regulatory changes and the overlapping sovereign crisis inEurope are, however, currently causing bank capacity to reduce in ameaningful manner. Key elements that were relevant to any successful androbust project finance transaction in the past are now changing, notably(a) overall availability of US dollar denominated funding from project


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By Myrjam Tschoeke, Head of Project Finance, Export and Agency Finance, Citi

The future of project finance– will agencies or projectbonds save it all?

Myrjam TschoekeHead of Project Finance,Export and Agency Finance, Citi

finance banks, (b) limitations on tenors for non-guaranteed exposures(mostly when exceeding 10 years), (c) greater price differentiation forguaranteed bank loans, (d) significant increase in ECA direct loans orECA funding schemes, and (e) vanishing and or lack of secondary marketfor ECA paper.

The role of agencies Export credit agencies, development finance institutions and multilateralagencies (together, agencies) have all noted the trends and are working onnew instruments to help overcome some of the changes. While in thepast, agencies have been focused on solving market trends directlyaffecting borrowers and projects globally, the contraction of global bankfunding capacity shifts the focus to the financial institutions structuringdeals and to actual providers of funds. The power and effectiveness of eachagency is in many cases dependent or at least closely connected to theability of commercial banks to provide the funding. Many agencies haveincreased their direct lending contributions significantly to ‘bridge’ thecurrent lack of bank funding.

Where previously not available, several agencies have followed the Nordicexample of developing funding schemes to alleviate pressures from banks.Examples are Sweden’s SEK, Denmark’s EKF with its ELO scheme or theGerman KfW refinancing scheme available for Hermes guaranteed loans.Some or all of the risks remain however in many instances with thearranging banks.

Other agencies have increased direct lending into projects significantly –examples are Japan’s JBIC/Nexi, Korea’s Kexim as well as US Ex-Im.Given overall indebtedness of governments globally, increasing directlending cannot hold indefinitely though. Whether or not bank capacitywill return to its original levels pre-crisis is insofar irrelevant since theoverall investment needs have increased dramatically and current schemesare not in a position to fund them all.

Opening to capital marketsWith the need in mind to identify other sources of investors outside thegovernment budget and outside the banks’ balance sheets, more and moreagencies are opening up the thought process to capital markets whetherthrough a bond issue or a private placement. With interest levels at all timelows, a lot of these so-called non-bank investors are craving for investmentsthat provide better rated returns and are long-term in nature. Non-bank


Project FinanceThe Citi World Official Agency Guide 2012-2013

investors could be insurance companies, state-owned and corporatepension funds in addition to specialty funds. Often these are investors thatpossess ample local currency to naturally hedge local revenues. But if it wasthat easy to bridge the gap, why has it not happened yet?

Firstly, in certain regions, notably in the EMEA and APAC regions, therehas simply not been a need to consider capital markets solutions since thereis a perception that all mega deals still attract sufficient bank funded anddirect ECA loans. There is however already a distinct community ofproject sponsors that have come to align their thoughts of wishing to lookat capital markets exits in order to recycle their – in some instances – scarcebank lines for new projects to come. In the North American projectfinance market, sponsors are regularly building in capital markets take outsolutions and private placements into their financing schemes.


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Secondly, every agency has their own distinct approach on when, how,and if at all they would allow capital markets solutions in a project.Admittedly, the inter-creditor arrangements are complex and requirenegotiations, but in the end, if there was an ECA consensus about how tohandle integration of non-bank investors in ECA-backed project financetransactions, sponsors would also take more confidence in embarking oncapital markets solutions for their deals. The willingness of an agency toconsider capital markets and private placement solutions either by directlyguaranteeing them or by accepting parallel capital markets and privateplacement solutions is – in the absence of aligned approaches – becominga competitive edge of ECAs outside the OECD guidelines.

Thirdly, there are a host of technical aspects that are colliding with thetraditional ECA bank-funded project finance transactions (such asrequired amortisation profiles, weighted average life, documentation risk,etc.) that require definition. The restrictions on tenors for High Incomecountries in particular could render capital markets solutions inefficientinsofar that repayment terms are currently heavily limited.

The way forward in the interimWhile certain pathfinder projects are on their way and will take severalmonths to crystallise, multilateral and developmental finance institutionsas well as ECA direct funding are filling the void in trying to address someof the constraints that the banks have (notably long-dated US dollarfunding). New products for capital markets, senior debt, but alsoincreasingly for mezzanine and equity positions are being developed. Tobe named are the EIB Project Bond initiative as well as initiatives from theIFC to foster local capital markets issues in select countries or DEG andOPIC who are very keen to support renewable transactions.

Neither banks nor project bonds individually will be capable of addressingthe investment needs over the next 10 years but both do play animportant role for future project finance. Banks’ possess excellent knowhow to structure and fund project finance deals during the morechallenging pre-completion periods, but long-dated hold positions are toshift to the non-bank investors.

Agencies are needed to ensure that both (i) non-investment grade projectsare capable of obtaining funding in the future as well as (ii) projects inHigh Income countries can still attract attractive funding to make theinvestment worthwhile. ■


Project FinanceThe Citi World Official Agency Guide 2012-2013


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Export Credit AgenciesThe Citi World Official Agency Guide 2012-2013

EXPORT CREDIT AGENCIES

ECA ENTRY UPDATESEach year the World Official Agency Guide is amended and updated. If you have amendmentsto make please contact the managing editor, Jonathan Bell: [email protected]. Anynew copy can be sent directly as a word or rtf file.

We would also ask that institutions provide their logos to go beside their entry in theGuide. These should be sent as a jpeg file of reasonable resolution for reproduction.

In June/July 2013 we will be contacting all institutions listed here with a view to update eachentry. If you are not listed and would like to be, then please contact the managing editor.


Banco de Inversión y Comercio Exterior (BICE)25 de Mayo 526, C1002ABL Buenos Aires, ArgentinaTel: (+54) 011 4317 6900Fax: (+54) 011 4311 5596E-mail: [email protected]: www.bice.com.ar

Contacts for insurance information:Abelardo TejadaE-Mail: [email protected]és GarciaEmail: [email protected]: (+54) 011 5217 4727/(+54) 011 5217 4759Fax: (+54) 011 5217 4746

Commercial ManagerMarcelo CeballosTel: (+54) 011 4317 6900 – Ext. 1670Fax: (+54) 011 5217-4780E-Mail: [email protected]

Ownership structure:97.96% Banco de la Nación Argentina. 2.04% Argentine State.

FunctionProvides short-, medium- and long-term insurance and finance.

Institution

Banco de Inversión y Comercio Exterior (BICE) was established in December 1991 to providewholesale credit to finance projects relating to investment, foreign trade and economicdevelopment in Argentina. Now BICE is a wholesale and retail public commercial bank that wasestablished as a joint stock company.

BICE’s main activity is providing wholesale short-, medium- and long-term loans through creditlines to qualifying commercial banks, and directly to the argentine enterprises. BICE assumes thecredit risk of the commercial bank and the companies. It acts as the government’s financialagent through governmental credit lines. BICE provides export credit insurance against politicalrisk on behalf of the government. BICE provides project finance.

Arge

ntina



Insurance

BICE fulfils the authority of application function within the Argentine government’s export creditinsurance scheme. Compañía Argentina de Seguros de Crédito a la Exportación (Casce)processes applications and provides export credit insurance against political risks to exporters,on behalf of BICE.

Application• Lenders and suppliers may apply for a letter of interest, preliminary or final commitment.

Cover• For public buyers 90% and to 95% for private buyers of the eligible contract value can be

insured in the global policy. Up to 100% in the individual policy for private buyers and up to90% for public buyers.

• Insurance is available for political risks of short (global policy)-, medium- and long-term(individual policy).

• Insurance can be available for multiple sales financed under a single line of credit providedby a bank to foreign banks or buyers.

• Cover can be provided in foreign currencies.• Bills covered by insurance policies can be transferred with previous Casce authorization.• No limits exist for Argentine exports as regards the foreign contents for export credit

insurance against political risks.• Typical credit periods are 5 years for turnkey projects.• Residual risk can be carried by the supplier or the lender.

Maximum insurance of export value (%)Buyers Political Risk Individual Policy

Global PolicyPrivate 100 95Public 90 90Sovereign 90 90

Interest• No interest support is offered.• Insurance can be provided for fixed-interest rate or floating-interest rate loans.

Fees• No processing/application fee is charged.• Premia is charged when the policy is issued.Cover• BICE will only cover political risks in the pre- and post-completion periods.• It covers up to 95% of project finance for private buyers and up to 90% for public buyers in

the global policy. Up to 100% in the individual policy for buyers private and up to 90% forpublic buyers.

Financing• BICE may provide funding on behalf of the government using credit lines granted to foreign

governmental buyers.

ArgentinaExport Credit Agencies


• BICE may supply funds to the commercial banks, which on-lend to the exporters.• BICE may supply funds to enterprises.• Repayment terms are not based on OECD consensus and depend on the goods to be

exported.• BICE lends at fixed and floating rate of interest

Trust FundsBICE organizes different trust funds for different purpose, especially for public works

Project Finance

BICE may offer project financing.

Fees• Commitment fees are charged on loans when funds are available for the exporter, but not

disbursed.• Administration fee is charged on loan and paid at the first disbursement.

Arge

ntina



Export Finance and Insurance Corporation (EFIC)Level 10, Export House, 22 Pitt StreetSydney NSW 2000AustraliaTel: (+61) 2 8273 5333Fax: (+61) 2 9251 3851Website: www.efic.gov.auEmail: [email protected]

Contact:Angus Armour, Managing Director & CEOPeter Field, Executive Director, Origination & Portfolio ManagementAndrea Govaert, Executive Director, SME

Ownership structure:EFIC is a statutory corporation wholly-owned by the Commonwealth of Australia.

Function:Export Finance and Insurance Corporation (EFIC) provides tailored finance solutions to helpAustralian businesses overcome the financial barriers they face when expanding their exportactivities.

Institution

Export Finance and Insurance Corporation (EFIC) provides tailored finance solutions to helpAustralian businesses overcome the financial barriers they face when expanding their exportactivities.

As the Australian Government’s export credit agency, it helps Australian-based businesses to winand finance export, offshore investment and onshore export-related opportunities when theirbank is unable to provide all the support they need.

EFIC works directly with businesses and their banks to provide loans, guarantees, bonds andinsurance products which can be tailored to meet the needs of both large and small enterprises.

EFIC is uniquely placed to do this: it has over 50 years of export finance and industry expertise,contacts at financial institutions around the globe, the strength of a ‘AAA’ credit rating and anentrepreneurial business approach to make export and eligible export-related deals happen.

EFIC practises responsible lending and uphold social and environmental best practice in thetransactions we support.

AustraliaExport Credit Agencies


EFIC’s products include:• Direct loan• Export finance guarantee• Project finance• Documentary credit guarantee• Bonding facilities and bond insurance• Working capital guarantees for small and medium-sized enterprises (SMEs)• Foreign exchange facility guarantees• Producer Offset loans• Export payments insurance• Political risk insurance

Terms and conditions of each product are subject to negotiation in any transaction with EFIC. Theguidelines given below are an indication of typical requirements.

Direct loan

When an exporter is competing for international contracts, a finance package which enables theiroverseas buyer to purchase their goods and services can be a critical factor in the exporter’ssuccess. The ability to offer the buyer a direct loan from EFIC can give the exporter an edge bycomplementing their technical capability with a comprehensive buyer finance package.

Under a direct loan facility, EFIC enters into a loan agreement with the overseas buyer. At thebuyer’s direction, EIFC may advance the loan funds to the exporter as export contract payments.The buyer makes loan repayments to EFIC in accordance with the loan agreement.

In addition, the loan disbursements the exporter receives from EFIC provide working capital,which they can use to finance their export production.

Terms and conditions• The exporter should be an Australian exporter producing capital goods or services for export

which have substantial Australian content. Generally, the export contract to be supported bythe loan will have a minimum value of $5 million.

• The maximum amount is generally limited to 85% of the export contract value.• Loan repayment may be available for a period of up to 15 years, subject to OECD guidelines.• Fees and charges vary depending upon a number of factors including EFIC’s risk

assessment, term and security.• The buyer has the option of a fixed or floating interest rate loan.

Export finance guarantee

When an exporter is competing for international contracts, a finance package which enables theiroverseas buyer to purchase their goods and services can be a critical factor in the exporter’ssuccess. The ability to offer the buyer finance supported by an export finance guarantee fromEFIC can give the exporter an edge by complementing their technical capability with acomprehensive buyer finance package.

Australia



An export finance guarantee is a facility between EFIC, a bank or other financial institution andthe overseas buyer. The bank enters into a loan agreement with the buyer, with EFIC providing aguarantee to the bank for the buyer’s payment obligations. At the buyer’s direction, the bank mayadvance the loan funds to the exporter as export contract payments. The buyer repays the bankin accordance with the loan agreement.

In addition, the loan disbursements the exporter receives from the bank provide working capital,which the exporter can use to finance their export production.

Terms and conditions• The exporter should be an Australian exporter producing goods or services for export which

have substantial Australian content. Generally, the export contract to be supported by theguarantee will have a minimum value of $5 million.

• The maximum amount is generally limited to 85% of the export contract value.• Loan repayment may be available for a period of up to 18 years, subject to OECD guidelines.• Fees and charges vary depending upon a number of factors including EFIC’s risk

assessment, term and security.• The buyer has the option of a fixed or floating interest rate loan.

Documentary credit guarantee

A documentary credit guarantee (DCG) from EFIC enables an exporter to rely on their bank inAustralia for payment, rather than their buyer’s bank overseas. A DCG can help an Australianexporter both protect their export revenue and finance their export activity.

If the exporter’s bank is unwilling to take the risk on the buyer’s bank for payments due to theexporter under a documentary credit (also known as a documentary letter of credit), EFIC canprovide a DCG to the exporter’s bank and assume the credit risk on the buyer’s bank. As EFIC’sguarantee secures payment under the documentary credit issued by the buyer’s bank, it enablesthe exporter’s bank to confirm that it will make payments to the exporter.

A DCG can help protect an exporter’s export contract payments. It gives the exporter increasedconfidence that if they provide their bank with the documents required by the documentarycredit, the exporter will receive payments due to them.

In addition, if the exporter is unable to obtain working capital to finance an export contractbecause their bank won’t confirm a documentary credit, a DCG from EFIC may help. If theexporter’s bank is comfortable with the exporter’s ability to meet their performance obligationsunder an export contract, the guarantee from EFIC can enable that bank to confirm thedocumentary credit, discount the payments under it and make working capital available to theexporter.


have substantial Australian content. Generally, the export contract to be supported by theguarantee will have a value of between $1 million and $10 million.

• The guarantee may be for up to 100% of the amount of the underlying documentary credit,which is generally limited to 85% of the export contract value.



• The guarantee will apply for the duration of the underlying documentary credit. Generally, a180-day minimum term applies.

• Fees and charges vary depending upon a number of factors including EFIC’s riskassessment, term and security.

Bonds

In international trade, it’s common for an overseas buyer to require their supplier to provideadvance payment, performance or warranty bonds. As a result, the ability to provide contractbonds to a buyer means an exporter can compete more effectively for contracts in the globalmarket.

If the exporter’s bank can’t help with a bond, or they require an amount of security that theexporter can’t provide, EFIC may be able to assist. A bond from EFIC can help the exporter meettheir export contract requirements without tying up all their working capital.


have substantial Australian content. The exporter should demonstrate that they have themanagerial, technical and financial capability to satisfy the contractual obligations covered bythe bond.

• The bond remains in force for the term required by the export contract.• Fees and charges vary depending upon a number of factors including EFIC’s risk

assessment, term and security.• The security required will be determined from EFIC’s credit and performance risk

assessment. EFIC will require recourse to the exporter’s company and may require recourseto company directors and related companies.

US bonding line

For Australian exporters, competing for business in the United States market can presentparticular challenges. In the US market, suppliers are typically required to provide a surety bond,from a registered US security bond issuer, for up to 100% of the export contract value as securityfor their performance obligations, compared with 10-15% elsewhere.

The exporter may be unable to raise the security for such a large bond, or be unwilling to tie upso much working capital. If the exporter lacks a business track record in the US, this can alsomake it difficult to obtain a surety bond.

EFIC’s US bonding line with Liberty Mutual Insurance Company (Liberty Mutual) enablesAustralian exporters to deal directly with EFIC, and EFIC in turn works with Liberty Mutual to helpexporters meet their US bonding requirements.

EFIC’s security requirements are based on an individual assessment of the exporter’s ability toperform the export contract, and may be less than the amount of the bond. As a result, EFIC’s USbonding line can enable Australian exporters to compete more effectively in the US marketwithout tying up their working capital.

Australia



Liberty Mutual is a leading US surety bond provider approved by the US government. It canprovide surety bonds for all US states, Puerto Rico and Guam.


have substantial Australian content. The exporter should demonstrate that they have themanagerial, technical and financial capability to satisfy the contractual obligations covered bythe surety bond.

• The surety bond remains in force for the term required by the export contract.• Fees and charges vary depending upon a number of factors including EFIC’s risk

assessment, term and security.• The security required will be determined from EFIC’s credit and performance risk

assessment.• EFIC will require recourse to the exporter’s company and may require recourse to company

directors and related companies.

Bond insurance

When competing for export contracts in global markets, a buyer will often require an exporter toprovide an advance payment or performance bond. However, if the exporter is dealing with a newbuyer or one in an unfamiliar country, they may be concerned about the risk that the buyer coulddemand payment on a bond without a valid reason and without notifying them. In this case, it ispossible that the exporter could be liable for the full value of the bond. Bond insurance from EFICis designed to protect the exporter from loss in these circumstances.


have substantial Australian content.• Generally, the level of indemnity is up to 95% for any loss resulting from an insured risk.• Cover remains in force for the life of the underlying bond.• Fees and charges vary depending upon a number of factors including EFIC’s risk assessment

and the term of the policy.

Export working capital guarantee

One of the most difficult obstacles that fast-growing small to medium-sized exporters are likelyto face is financing their international sales contracts. In particular, they often find that they don’thave enough working capital to deliver on new export contracts, especially large, one-offcontracts. For example, they may be short of funds to hire more staff, buy raw materials,manufacture their product for export or deliver their goods or services to the buyer.

However, the SME exporter may not have the assets – often in the form of real estate – that theirbank requires them to provide as security for working capital finance. Their bank may also bereluctant to provide finance for an export contract if it considers that the payment terms of thecontract are too risky.



If their bank can’t assist, EFIC may be able to help SMEs obtain working capital finance fromtheir bank with an export working capital guarantee (EWCG). An EWCG is a guarantee from EFICto the bank which provides security for the bank to lend the SME the additional working capitalthey need. It’s a flexible guarantee which can support a single export contract or many exportcontracts with different buyers.


have substantial Australian content and involve a net benefit flowing directly or indirectly fromoverseas to a person carrying on a business in Australia.

• The exporter should also have:– an existing relationship with a participating bank– a signed export contract, purchase order or letter of intent with an overseas buyer.

• Generally, an EWCG will have a minimum value of $500,000.• For a single export contract, the EWCG remains in force until the overseas buyer has made

their final payment. If an EWCG covers more than one export contract, the term of theguarantee is generally up to 12 months.

• Fees and charges vary depending on a number of factors, including EFIC’s risk assessment,term and security.

• The security required will be determined by EFIC based on our credit and performance riskassessment.

• EFIC usually requires personal guarantees from company directors and may requireadditional security.

Foreign exchange facility guarantee

For exporters, adverse movements in exchange rates are an inherent risk of doing business ininternational markets. For example, if an exporter pays their suppliers in Australian dollars butreceives payment exports in US dollars, unfavourable shifts in the exchange rate of thecurrencies may affect their profit margin.

A foreign exchange facility can help an exporter protect their export profits from exchange ratefluctuations by locking in exchange rates and allowing them to hedge their currency exposure.The more of their export contracts they can hedge, the greater their control over foreignexchange risk.

With a foreign exchange facility guarantee from EFIC, participating foreign exchange specialistscan increase the trading limit on an SME’s foreign exchange facility. This means the SMEexporter can extend their hedging programme to more of their export contracts and betterprotect their export profits.

Generally, an SME exporter doesn’t need to provide security for a foreign exchange facilityguarantee from EFIC. This can help to free up their working capital to take on further exportcontracts.

Australia



Terms and conditions• The SME should be an Australian exporter and:

– have or have approval for a Travelex foreign exchange facility which relates to foreignexchange forward contracts (and, for eligible customers, option contracts) for hedgingpurposes only

– in the last 12 months, have exported goods or services to at least the value of the foreignexchange facility guarantee.

• For eligible customers, the guarantee can, depending on your specific circumstances,facilitate an additional trading limit of up to $2.5 million.

• The term of the foreign exchange facility guarantee may be up to 12 months.• The exporter pays no additional fees or charges to obtain a foreign exchange facility

guarantee.• Generally, EFIC does not require additional security from the exporter for the foreign

exchange facility guarantee that it provides to Travelex.

Producer Offset loan

A Producer Offset loan is a loan from EFIC to a production company to finance eligible Australianfilm, documentary and television productions with international distribution agreements.

Producer Offset loans from EFIC complement the Australian Government’s Producer Offsetincentive, which provides refundable tax offsets (rebates) for producers of Australian featurefilms, television and other projects.

The loan is specifically designed to help smaller productions that are eligible for the ProducerOffset but may have difficulty in attracting finance in the commercial market. EFIC may also beable to assist larger productions, subject to additional due diligence.

For full eligibility requirements, visit www.efic.gov.au/producer_offset_loan.

Terms and conditions• EFIC will lend an amount equal to up to 90% of the estimated Producer Offset, based on the

Provisional Certificate. The minimum loan amount is $100,000, and the maximum is$500,000.

• Flexible terms of up to two years are available.• Fees and charges will vary depending on a number of factors, including EFIC’s risk

assessment, the amount and term of the loan and the complexity of documentation required.• EFIC requires a completion guarantee, and fixed and floating charge over the ‘special

purpose vehicle’ production company as security for the loan. EFIC also requires a guaranteeand indemnity from the parent/sales company and, in some circumstances, may require afixed and floating charge over the guarantor.

• The authorised tax agent must provide an irrevocable undertaking to deposit the AustralianTax Office refund into the designated bank account.



Medium term export payments insurance

In general, the longer the payment period in an export contract, the higher an exporter’s risk ofnon-payment by overseas buyers and the greater the pressure on the exporter’s working capital.

If an export contract has a payment period of more than two years, export payments insurancefrom EFIC can protect the exporter against the risk of non-payment due to defined commercialand political events. Commercial events may include the buyer’s insolvency or their wrongfulbreach of contract payment obligations. Political events may include war, civil war and riot, theapplication of foreign laws that interfere with the contract and the inability to convert localcurrency or to transfer currency out of the buyer’s country.


have substantial Australian content. Generally, the export contract to be covered by theinsurance policy will have a minimum value of $500,000.

• The level of indemnity is generally up to 100% for any loss resulting from defined politicalevents and 90% for defined commercial risks.

• The maximum amount of cover is generally limited to 85% of the export contract value.• The export payment period will normally be a minimum of two years and a maximum of five

years.• Fees and charges vary depending upon a number of factors including EFIC’s risk assessment

and the term of the policy.

Political risk insurance

When an exporter participates in an overseas investment or project, they accept that it willinvolve commercial risk. However, the investment may be located in a country with an uncertainpolitical environment. Because of the unique nature of political risks, and their potential to causesignificant losses to an investment or project, the exporter may consider taking out political riskinsurance (PRI) with EFIC to help protect against financial losses caused by defined politicalevents.

PRI provides cover against losses due to specific political events including:• Expropriation, such as nationalisation of an exporter’s investment or plant and equipment• War damage• Political violence• Inability to convert local currency or to transfer currency our of the buyer’s country.

EFIC has a PRI policies designed to protect the interests of:• Investors – EFIC’s PRI Investor policy is available for investments in new overseas companies

and projects, new capital injections to existing investments and projects, and expansions ofexisting investments. It provides cover against losses due to political events specified in thepolicy, which may include expropriation and war damage among others.

• Lenders – EFIC’s PRI Lender policy can insure a lender against the borrower defaulting onscheduled loan payments due to a specified political event.

Australia



• Financiers – EFIC’s PRI (Hedging) policy covers financial institutions and banks providing ahedge facility in connection with a project finance loan for an overseas resource or mininginvestment or project. It insures them against financial loss incurred as a result of the hedgecounterparty’s non-payment or non-delivery of amounts under the hedge facility where thesole and direct cause arises from an insured event.

• Investors and export contractors – EFIC’s PRI (Plant and Equipment) policy covers Australiancompanies using or deploying plant and equipment in connection with a foreign investmentor overseas project. It insures them against losses due to damage to or destruction of plantor equipment caused solely or directly by an insured political event.

Terms and conditions• Eligibility for EFIC’s PRI policies is as follows:• PRI (Equity) and PRI (Plant and Equipment): an Australian company either undertaking an

investment outside Australia or deploying or investing in plant and equipment for use in aproject outside Australia.

• PRI (Loan): a financial institution or bank carrying on business in Australia, or a subsidiary ofsuch a financial institution or bank, providing financing for an investment or project outsideAustralia.

• PRI (Hedge): a financial institution or bank carrying on business in Australia, or a subsidiary ofsuch a financial institution or bank, providing a hedge facility in connection with the debtfinancing for a resource or mining investment or project outside Australia.

• PRI is available for extended terms of up to 10 years, reflecting the nature of the investment,contract or investment period or term of the underlying loan or hedge facility.

• EFIC’s premium depends on factors such as the location and type of the investment orproject, period of insurance and type of approved causes of loss covered.



Oesterreichische KontrollbankAktiengesellschaft (OeKB)Strauchgasse 3/Am Hof 4A-1011 Vienna, AustriaTel: (+43) 1 53127 2441Fax: (+43) 1 53127 5698Website: www.oekb.atE-mail: [email protected]

Contact: Peter Gumpinger

Ownership structure: 100% private

FunctionProvides short-, medium- and long-term insurance and financing (commercial and conessional)for capital goods exports and Austrian foreign investments.

Institution

Oesterreichische Kontrollbank Aktiengesellschaft (OeKB) was established in 1946. It has a paidup share capital of a130 million. Its shareholders are commercial banks.

The lines of business are:• export-related activities• money and capital market-related activities• information services• energy market services

OeKB is one of the few export credit agencies offering insurance as well as refinancing. It iscommitted to international regulations – especially of the EU and the OECD – as well as to soundenvironmental principles based on international standards. In export insurance services, OeKBacts as agent for and on behalf of the Republic of Austria. When providing financing tocommercial banks OeKB acts on its own behalf.

Insurance (Export Guarantees)

Being a government-backed export credit agency of an EU-member state OeKB providesprotection against non-marketable risks related to Austrian exports or foreign investments.

AustriaExport Credit Agencies


ApplicationExporters or financial institutions, domiciled in Austria or abroad, may apply for letters ofindication, guarantee offers or final commitments.

Cover is available• for pre-shipment and credit risks,• for short- and medium- long-term capital goods transactions,• for supplier credits or buyer credits,• in all major currencies,• for large portions of third country goods,• for commercial transactions and concessional deals (soft loans)• up to 100% of interest during construction and premium may be capitalized;• cover is also available for foreign investments and for bonds.

Maximum coverage of export credit guarantee (%)buyer political risk commercial riskprivate 100 95public 100 not applicablesovereign 100 not applicable

Fees• For medium-/long-term transactions the OECD minimum premium benchmarks are applied

(standard ECA quality).• Premium may be paid up front or as a margin.• A processing fee is charged.

Contact:Ferdinand Schipfer, Senior DirectorE-mail: [email protected]

Financing

The Export Financing Scheme operated by Oesterreichische Kontrollbank provides theopportunity to finance exports of goods and services as well as foreign investments.

Essential requirements for refinancing by OeKB are:• the existence of an assumption of liability either:• by the Republic of Austria as defined in the 1981 Export Guarantees Act or according to the

provisions of the said Act• by a credit insurer or• by the Austria Wirtschaftsservice Gesellschaft (AWS) or• by an international organization• that the goods and services to be financed serve directly or indirectly the improvement of the

Austrian balance of current transactions in goods and services or that the project to beexecuted abroad is in the Austrian interest.

Furthermore, the corresponding rights arising both from the assumption of liability as well asfrom the underlying (export) contracts have to be assigned as collateral security.

Austria



OeKB provides two financing possibilities for refinancing commercial banks:

1. Financing of general transactions on commercial terms.• Based on the 3-month Euribor

Credit facilities in Euro carry a floating interest rate based on the 3-month Euribor. Dependingon the repayment term margins are added. The extent of the margins reflects OeKB’sprevailing average cost of funding and is monthly verified by OeKB.

• Based on fixed/floating interest ratesCredit facilities in Euro both carry a floating interest rate (tranche A) and a fixed interest rate(tranche B). The credit portion granted at the fixed rate is applied to the long-term creditportion (base financing). The floating interest rate is determined by OeKB quarterly. The levelof the floating interest rate reflects OeKB’s prevailing average cost of funding.

• Financing in foreign currencies may be made available on a case by case basis at a floatingor fixed rate.

2. Financing of special transactions on concessional terms.Financing of special transactions on concessional terms (soft loans) can be provided only toqualified countries and for specific projects in accordance with the relevant national andinternational rules.

Contact:Dieter Nell, Senior DirectorE-mail: [email protected]

Project Finance

Since 1979 OeKB has had a specific Project and Environmental Analyses department. Externalspecialists (lawyers, engineers, consultants, etc.) are used on a case by case basis. Thisdepartment is responsible for project finance.

General features OeKB requires in project financing transactions:• Substantial amount of equity (usually at least one third of the project volume) depending on

sponsors and security structure.• Risk-sharing with commercial lending partners.• A feasibility study by an experienced independent consultant. The commercial, technical and

environmental soundness and the political, legal and financial aspects considered for theacceptability should be presented in full detail.

• Generally, sound commercial banking principles are applied in the risk assessment.

Cover provided for project finance is highly individual.

The following points may apply:• Up to 100% of political risk and 95% of commercial risk may be covered.• In principal, cover during the construction period is available.• Tailor-made conditions for cover as a result of the assessment may evolve.

Contact:Werner Schmied, Senior DirectorE-mail: [email protected]

AustriaExport Credit Agencies


Additional Information

ECA alliances/agreements• OeKB has concluded several co-operation and co-reinsurance agreements with many other

ECAs and with some international financial institutions.

Value of guarantees issued in 2011• a4.658 billion

Austria



Central Bank of BarbadosPO Box 1016, BridgetownBarbados, West IndiesTel: (+1246) 436 6870Fax: (+1246) 228 3861

Ownership structure: 100% sovereign

Function:Provides insurance and guarantees

Institution

The export credit insurance and guarantee scheme is administered by the Foreign Exchange andExport Credits Department of the Central Bank of Barbados, and supported by the export creditinsurance and guarantees fund. The fund was established in 1978 with an initial appropriation ofBd$500,000 (US$250,000) from central bank funds. The maximum liability of the fund was setat 20 times its capital.

Extent of coverThe export credit insurance will cover 90% of the loss in the case of political risks and 80% ofcommercial risks. The remaining 10% and 20% respectively will be borne by the exporter.

Barbados introduced the export credit insurance and guarantees scheme in 1977 with a view toproviding a substantial measure of support for its export promotion drive. The scheme wasrevised in 1988 and new features were added to provide exporters and commercial banks withan improved range of facilities. More recently, cover for services has been added.

All non-traditional exports are covered. The significant decline in Barbados’s manufacturedexports over the past 10 years has resulted in a low level of utilization of the scheme’s facilities.

ServicesHowever, because of the growth in the services sector, the insurance and guarantee facilitieshave now been extended to cover such services as technical and professional services, servicesrelating to patents, royalties, licences and franchises, advertising and film services, dry dockrepairs and aircraft services.

BarbadosExport Credit Agencies


Guarantees

Cover• Up to 90% of the eligible contract value can be guaranteed.• The export finance guarantee section of the scheme provides both pre-shipment and post-

shipment coverage.• Pre-shipment coverage is provided in respect of any credits granted by a commercial bank to

an exporter for the purpose of manufacturing, processing and/or packaging of goods forexport against a firm contract or agreement of sale with a foreign buyer.

• Post-shipment coverage is provided in respect of any credits granted by a commercial bankto an exporter through the purchase, negotiation or discount of export bills relating to theshipment of goods out of Barbados under contract or agreement of sale with a foreign buyer.

• An export finance guarantee covers the failure of the exporter to repay the guaranteed debtdue to insolvency or protracted default.

• The percentage of loss guaranteed by the Central Bank in respect of pre-shipment coverageis between 75% and 90%.

• In respect of post-shipment coverage the percentage of loss guaranteed is 90%.

Fees• Premia rates for export finance guarantee pre-shipment coverage are either 1% or 1.5% a

year depending on the amount of the loan facility negotiated and the percentage guaranteed.• Similarly, for the post-shipment coverage, rates are either 1% or 1.5% a year depending on

the loan facility.

Insurance

Cover• Up to 90% of the eligible contract value can be insured.• The export credit insurance section of the scheme provides export credit insurance coverage

against losses arising out of non-payment by foreign buyers of the goods and services ofBarbadian exporters.

• Insurance cover is provided via shipment policies, contract policies and services policies. Itcovers both commercial and political risks.

• Commercial risk cover includes:– Insolvency of the buyer.– Failure of the buyer to pay the exporter by the due date of payment all or any part of the

gross invoice value of goods delivered to and accepted by the buyer.• Political risk cover includes:

– Transfer restrictions.– Import restrictions.– Revocation of import permits.– War and other hostilities in the buyer’s country.

• The credit limit for each buyer is decided on a case-by-case basis.

Barbad

osExport Credit Agencies


• Ordinarily the central bank will pay claims four months after the due date of payment.However, in some cases, such as insolvency, diversion of voyage, or transfer delays, theCentral Bank will not be liable for the payment of a claim unless such claim has beenreceived within 12 months of the date on which the loss was sustained. It will also not beliable for loss arising from any dispute between the exporter and the buyer.

Fees• Premia rates for export credit insurance are normally between 0.5% and 0.85%. Premia

rates vary according to the grouping of the buyer’s country and the terms of payment beingextended by the exporter.•

BarbadosExport Credit Agencies


Eximgarant of Belarus2, Melnikaite streetMinsk 220004Republic of BelarusTel: (+375 17) 203 95 09Fax: (+375 17) 203 88 19E-mail: [email protected]

Founded 2001

Ownership: 100% government owned institution

Function:Eximgarant is the official export credit agency of the Republic of Belarus. The main objective ofEximgarant is to promote the export of Belarusian goods and services in order to increasecompetitiveness of domestic products and to support mutual economic exchange of the Republicof Belarus with other countries.

Institution

Export support is a part of the general economic policy of the state. The state is assisting inacceleration and multiplication of positive effects achieved by Belarusian firms on foreignmarkets by the system of the pro-export policy. Intention of the state is summarized in theDecree 'On insurance and financing the export with state support', approved by the President inAugust 2006.

According to the Decree Eximgarant provides the following insurance products:• Short-term export credits insurance against political or commercial risks• Medium and long-term export credits insurance against political or commercial risks• Investment insurance against political risks• Pre-export insurance• Bank credit insurance• Lease transactions insurance• Insurance of bonds, L/C, custom guarantees

Following institutions active together with Eximgarant in the system of the state support ofexport:• Ministry of Finance of the Republic of Belarus• National Bank of the Republic of Belarus

Eximgarant co-operates closely with other credit insurance companies and has co-operationagreements with EGFI (Iran), BAEZ (Bulgaria), Kazakhstan (KECIC) EGAP (Czech Republic),EXIMBANKA SR (Slovakia), MEHIB (Hungary) and others. Eximgarant has been actively involved inactivities of the Prague Club and uses know-how of the leading members of this organization. InJune 2009 Eximgarant was a host of the Annual Meeting of the Prague Club.

Belarus



Office national du ducroire | NationaleDelcrederedienst (ONDD)

Contacts:Dominique [email protected]+32 2 788 87 71

Danielle Ferriè[email protected]+32 2 788 87 74

Jeroen [email protected]+32 2 788 87 67

Kerlijne Van [email protected]+32 2 788 86 13

Gert Van [email protected]+32 2 788 87 62


Function:ONDD’s core business is to insure companies and banks against political and commercial risksrelating to international commercial transactions, mainly regarding capital goods and industrialprojects, as well as contracted works and services. ONDD also insures against political risksrelating to foreign direct investments and directly finances commercial transactions of limitedproportion.

Beside its core business, ONDD can participate on an unfunded basis in syndicated (or inbilateral) bank loans provided these loans are trade related (project finance, structured tradefinance, etc.) or can take part in insurance syndicates for comprehensive cover, public buyerdefault, political risk cover, etc. In order to comply with the EU regulations on export creditinsurance, ONDD has set up a subsidiary in 2004, the public limited company Ducroire |Delcredere S.A. N.V. This subsidiary exercises its activity without the guarantee of the state.

Ducroire | Delcredere insures and reinsures the political and commercial risks of current tradetransactions. It also issues legal and contractual bonds. Ducroire | Delcredere offers its servicesto all businesses within the European Union and insures clients for their trade sales at home andin markets across the world.

3, rue Montoyerstraat1000 BrusselsBelgiumTel: (+32) 2 788 88 00Fax: (+32) 2 788 88 10E-mail: [email protected]: www.ondd.be

BelgiumExport Credit Agencies


Institution

ONDD is an autonomous public body with the task of promoting international economic relations.It is backed by the full faith and credit of the Belgian state.

ONDD exercises its activity:• On behalf of the state when the transactions concerned involve risks which exceed its

technical and/or financial capabilities.• For its own account, with the guarantee of the state in all other cases.

ONDD is bound by the OECD Consensus.

In December 2007, ONDD was assigned its first-ever rating by credit rating agency Standard &Poor’s. ONDD was given the second best long-term rating: AA+, and the best short-term rating:A-1+. Standard & Poor’s has assigned these ratings for five consecutive years.

In a report published on 17 January 2012, Standard & Poor’s affirmed its ‘AA’ long-term issuercredit rating on ONDD to ‘AA’. At the same time, Standard & Poor’s removed the rating fromCreditWatch with negative implications, where it was placed on 7 December 2011. The ‘A-1+’short-term issuer credit rating was affirmed. The outlook is negative.

The rating actions mirror those Standard & Poor’s took on the Kingdom of Belgium on 13January 2012.

Insurance

ApplicationOn receiving an application for cover from the exporter and/or the bank, ONDD issues an offer ofcover free of charge (or only a non-binding opinion when all elements of the file are not yetavailable) with a validity period of 6 months. When the contract is not signed within this validityperiod, ONDD can extend it.

CoverExport transactions

Contract types• Supplier and buyer credits with more than two years of credit• Special transactions, contracted works where important amounts and long performance

terms are involved and where payments are generally carried out in instalments as the worksproceed.

• Contracts presented on a project financing basis may also be submitted• Unfair calling of bonds to be issued under the insured contracts may be covered as well.• Cover can be provided in all leading OECD currencies. Occasionally, non-OECD currencies

are eligible for cover.

Risks covered• pre-shipment risks• non-payment risks

Belgium



Causes of loss covered• political (and similar) risks• risks on private or public buyers/banks

Amounts covered• principal and interest amounts, including interests on arrears during waiting period

maximum percentage of coverpolitical risks 98%sovereign/public buyers 98%private/public banks 98%private buyers 95%

Waiting period• insolvency risk no waiting period• risk on banks 3 months• other risks 6 months

Foreign content• flexible attitude

Premium• may be included in the financing in case of buyer credits

Foreign direct investment (FDI) transactions

FDI types• equity investments• shareholder loans• non-shareholder loans

Risks covered• dispossession• payment default

Causes of loss covered• expropriation and government action• war and civil disturbance• currency inconvertibility• breach of contract

maximum percentage of cover• 90%

Waiting period• transfer risk in equity investments 3 months• other risks 6 months

BelgiumExport Credit Agencies


Banco Nacional de DesenvolvimentoEconômico e Social – BNDES(Brazilian Development Bank)

Contact:Leonardo Pereira / chief of departmentTel: (+55) 21 2172-8164Fax: (+55) 21 2220-8244E-mail: [email protected]

Guilherme Pfisterer / managerTel: (+55) 21 2172-7717Fax: (+55) 21 2172-8587E-mail: [email protected]

FunctionProvide long-term financing for Brazilian exports.

Institution

The BNDES Trade Finance Department offers long-term financial support for almost allmanufactured goods and services produced by Brazilian companies or by foreign companiesestablished in Brazil. It is also committed to increasing Brazil's export base by assisting small andmedium size enterprises.

Financing

The BNDES operates in the domestic market in partnership with a network of more than 150accredited financial agents, who also act as guarantors. The financing has to be repaid in Braziland in local currency, even when indexed to another currency such as the USD.

Export credit facilities• Pre-shipment: financing for the production of goods and services for export, produced by

Brazilian companies• Post-shipment: financing for the commercialization of goods and services on a supplier or

buyer basis, produced by Brazilian companies.

Av. República do Chile, 100 / 18th floor20031-917 – Rio de Janeiro – RJBrazilTel: (+55) 21 2172-7921/8323Fax: (+55) 21 2262-1470Website: www.bndes.gov.br

Ownership structure:100% sovereign.

Brazil



Interest• Pre-shipment: TJLP (Brazil's Long Term Interest Rate, fixed by the Brazilian Central Bank

every quarter) or LIBOR.• Post-shipment: LIBOR or CIRR.

Spread• Negotiated directly between the guarantor and the exporter and the importer or between

BNDES and the importer, as the case may be.

Tenor• Pre-shipment: up to 3 years• Post-shipment: up to 12 years

Guarantees• Multilateral agencies;• Prime foreign banks;• Accredited Brazilian banks;• Export credit insurance;• Convenio de Pagos y Créditos Recíprocos– CCR (Reciprocal Payments and Credit

Agreement), signed by the member countries of the Asociación Latinoamericana deIntegración – ALADI (Latin American Integration Association).

Fees• Contractual fees may be applicable on a case-by-case basis.

BrazilExport Credit Agencies


SBCE – Seguradora Brasileira de Credito aExportacaoRua Senador Dantas, 74 16 andar20031-205 Rio de Janeiro, RJBrazilTel: (+55) 21 2510-5000Fax: (+55) 21 2532-3320Website: www.sbce.com.br

Contact:Short Term – Mrs. Cristina Salazar (Director)Medium & Long Term – Mr. Marcelo Franco (Director)

Ownership structure:Private – Major shareholders are: Banco do Brasil, BNDES, Bradesco Seguros, SulAmerica Seguros, Minas Brasil Seguros, Unibanco Seguros and Coface (CompagnieFrancaise d’Assurance pour le Commerce Exterieur).

Function:Provides short- medium- and long-term export credit insurance policies.

Institution

SBCE was established in June 9, 1997 as a direct result of a partnership between Braziliancompanies of renowned repute and tradition allied to international technology and expertise toprovide Brazilian exporters with an instrument of coverage to enable them to leverage theintroduction of Brazilian goods and services in competitive foreign markets.

FinancingSBCE provides export credit insurance against commercial, political and other risks that mightaffect economic and financial transactions linked to export credit operations. Exporters of goodsand services and banks can benefit from SBCE cover.

Cover• Commercial Risks- Characterized by default, reorganization, or bankruptcy of the private

importer.• Political & Other Risks – Characterized by default by the public importer, general

moratoriums decreed by authorities of the importing country, decisions by the Brazilian orforeign governments which block fulfilment of payment by the importer, the occurrence,outside of Brazil, of war, revolution, civil unrest or natural catastrophes.

Brazil



Export Development Canada (EDC)150 Slater StreetOttawa, Ontario K1A 1K3Tel: (1 613) 598-2500Fax: (1 613) 237-2690Web site: www.edc.ca

CanadaOttawa (head office), Vancouver, Calgary, Edmonton, Winnipeg, Regina, Toronto, Windsor,Mississauga, London, Montreal, Saint-Laurent, Quebec City, Drummondville, Halifax,Moncton, St. John’s.

InternationalMexico, Brazil, Germany, Chile, Greater China, India, Panama, Peru, Russia, Singapore,Turkey, United Arab Emirates.

Ownership structureThe Government of Canada is EDC’s sole shareholder.

FunctionEDC is Canada’s export credit agency. Its job is to support and develop Canada’s export trade byhelping Canadian companies respond to international business opportunities. EDC is a self-financing, Crown corporation that operates at arm’s length from the government.

EDC provides insurance and financial services, guarantees and bonding, and small businesssolutions to Canadian exporters and investors and their international buyers. EDC also supportsCanadian direct investment abroad and investment into Canada. Much of its business is done inpartnership with other financial institutions and through collaboration with the government of Canada.

Unlike most export credit agencies that rely on governmental annual appropriations, EDC isfinancially self-sufficient and operates much like a commercial institution. It collects interest onloans and premiums on insurance products. It also has a treasury department that sells bondsand raises money in global capital markets.

EDC is committed to the principles of corporate social responsibility (CSR). Its rigorous due diligencerequirements ensures that all projects and transactions supported are financially, environmentallyand socially responsible. EDC believe that good business — adopting and embracing theseprinciples while facilitating trade for Canadian investors and exporters — is good for business.

Since it was founded in 1944, EDC has facilitated more than $1,041 billion in exports andforeign investment by Canadian companies. This is important because Canada’s economy relieson trade; one in three jobs depends on exports. Given Canada’s small domestic market,Canadian businesses have to think globally to compete and grow.

CanadaExport Credit Agencies


In 2011, EDC helped 7,877 Canadian companies do business in 195 countries. The majority ofthese companies were small business, and more than 30 per cent of business was done in fast-growing emerging markets. Using EDC’s financial products and services, its customers’ exportsales and investments reached nearly $103 billion. EDC estimates that this helped generate$70.5 billion of Canada’s GDP, contributed more than 5 cents for every dollar earned and about707,000 jobs.

When EDC works on a transaction, it prefers to do it in explicit partnership with the private sector.It lets the private sector player set the terms and EDC adds capacity and shares the risk. Thisencourages the private sector to move into new areas, leaving EDC to move to new frontiers tocreate new trade for Canada.

Insurance solutions

EDC has a range of insurance solutions whether companies have one contract, one customer orwant support for their entire book of business. Our insurance can help companies access theworking capital they need and protect their assets as they grow their international sales.

Accounts Receivable Insurance (ARI)Companies can use ARI to protect all of their international sales against a wide range of risks,from a customer refusing to pay to political upheaval in a particular market. Knowing that theirrisks are covered also means financial institutions may be more willing to increase cash flow.

Single Buyer InsuranceSingle Buyer Insurance is an affordable way to insure unlimited sales to one customer for 180days.

Contract Frustration Insurance (CFI)For specific export contracts for services, capital goods or projects, this type of insurance is acost-effective way to protect sales from a variety of risks.

Political Risk Insurance (PRI)Many exciting opportunities exist in markets where there is also a higher chance of politicalupheaval. With EDC’s PRI companies can do business in these select markets with confidence.Performance Security Insurance

If a company is worried that their customer is going to call the guarantee that they put up asassurance that they will deliver the goods or services as promised, they can protect themselveswith EDC’s Performance Security Insurance.

Domestic Credit InsuranceEDC can provide re-insurance for domestic receivables to Canada’s private credit insurers, whichhelps cover a company against a wide range of commercial risks.

Bonding & Guarantee SolutionsPosting bonds and guarantees is a necessary part of exporting that can tie up a company’s cashflow. We have a range of bonding and guarantee solutions, offered in partnership with financialinstitutions, which can help companies to free up the working capital they need.

Cana

daExport Credit Agencies


Account Performance Security GuaranteeWith EDC’s Account Performance Security Guarantee, a company’s financial institution is fullyprotected if their customer demands payment against the guarantee the bank provided to thecustomer on the company’s behalf. This can encourage banks to forego the collateral usuallyrequired to post such guarantees.

Surety Bond InsuranceA surety company can, similar to a financial institution, issue a contractual or performance bondon a company’s behalf. EDC’s Surety Bond Insurance can protect a company’s existing suretycompany in the event of a call, encouraging them to provide the company with the bondingcapacity they need to sell internationally. If finding a surety company is an issue, EDC can alsohelp companies fulfill their bonding requirements through our various partnerships.

Foreign Exchange Facility GuaranteeEDC’s Foreign Exchange Facility Guarantee encourages a company’s foreign exchange providerto forego the need for collateral when they sign a foreign exchange contract to lock in exchangerates. This means companies can mitigate fluctuations in exchange rates without tying up theircash flow.

Domestic Surety Bonding and Bank GuaranteesThrough a partnership with Canadian financial institutions, bonding and surety companies, EDCcan provide re-insurance to surety companies for bonds they provide to cover a company’sdomestic business.

Financing

Export Guarantee ProgramEDC can provide a guarantee to a company’s financial institution to encourage them to extendthe financing you need through the Export Guarantee Program.

Supplier FinancingFor investment-grade buyers - those rated BBB or higher - EDC can provide Supplier Financingand purchase promissory notes under the financing terms of a company’s commercial contract,giving a company the equivalent of a cash sale.

Foreign Buyer FinancingHaving a financing proposal for a prospective buyer can be a critical part of a sales pitch. EDC’sForeign Buyer Financing can give a company that and all the benefits of a cash sale becauseEDC disburses the funds directly to the company and collects from the customer.

Project FinanceWhen a company wants to participate in a large-scale global project or joint venture, EDC canprovide advice, underwriting expertise, and project finance support across a variety of industrysectors.

Domestic FinancingEDC’s domestic financing is available to qualified Canadian companies involved in trade-relatedsectors of the economy in the form of direct loans, co-lending or guarantees.

CanadaExport Credit Agencies


China Export & Credit InsuranceCorporation (SINOSURE)North Wing, Fortune Times BuildingNo. 11 FenghuiyuanXicheng DistrictBeijing, 100033People’s Republic of ChinaTel: +86 10 66582288Fax: +86 10 66517828Website: www.sinosure.com.cn

Contact:E-mail: [email protected]

Ownership structure: State-owned

FunctionProvides insurance

Institution

China Export & Credit Insurance Corporation (SINOSURE) is a state-funded policy-orientedinsurance company with independent status of legal person, established for promoting China’sforeign trade and economic cooperation. It began operations on December 18, 2001. PresentlySINOSURE has formed a nationwide service network. Its business guideline is “by means ofinsurance service for foreign trade and investment, fully supporting the development of foreigntrade and economic cooperation and promoting the economic growth, the employment and theequilibrium of international balance of payment”.

SINOSURE is mandated, in accordance with the Chinese government’s diplomatic, internationaltrade, industrial, fiscal and financial policies, to promote Chinese exports of goods, technologiesand service, especially high-tech and high value-added capital goods like electromechanicalproducts, and national enterprises’ overseas investment, by means of export credit insuranceagainst non-payment risks.

SINOSURE’s main products include Medium- and Long-Term Export Credit Insurance, OverseasInvestment Insurance, Overseas Leasing Insurance, Short-Term Export Credit Insurance, ImportCredit Insurance, Domestic Trade Credit Insurance, Bonds & Guarantees concerning foreigntrade, investment and cooperation, Reinsurance concerning credit insurance, investmentinsurance, bonds and guarantees, Insurance Fund Management, Accounts ReceivableManagement, Debt Collection, Factoring, Credit Risk Consultation and Credit Rating, and otherproducts and service approved by the Government. SINOSURE also introduced its ‘SINOSURE

China



Online’, a multi-function e-commerce platform, and the ‘E-Plan’, an online insuring platformparticularly for SMEs (small and medium enterprises), through which policyholders are able to getfast and convenient service.

Since SINOSURE’s foundation, the role of export credit insurance in supporting China’s foreigntrade and economic cooperation has become more and more evident. Especially in the time offinancial crisis, it served as leverage in stabilizing foreign demands and driving export deals.SINOSURE’s policyholders were greatly helped in competing for orders and preserving theirmarket share. By the end of 2011, SINOSURE has supported export, domestic trade andinvestment with a total value of $741.84 billion. Its policies covered thousands of exporters andhundreds of medium and long term projects concerning high technology export, large electro-machinery and complete-set equipment export, overseas engineering contracts, etc. In themeantime, SINOSURE has facilitated the lending of CNY1.03 trillion by 152 banks.

SINOSURE is determined to be a sustainable insurance company with clearly-defined position andbusiness, special functions, adequate solvency, regular governance, strict internal control and safeoperation. Through the service of policy-oriented insurance, SINOSURE will continue to serve thestate strategy and play more important policy role in supporting China’s foreign trade developmentwith the strategy of ‘go-abroad’, safeguarding the security of national economy, and promoting theeconomic growth, the employment and the equilibrium of international balance of payment.

Products

Short-term Export Credit InsuranceShort-term export credit insurance provides exporters with guarantees for capital retrieval risk indoing export or re-export from China by way of L/C, D/P, D/A, or OA, all bearing a term of one year.

Medium – and Long-term Export Credit InsuranceMedium – and Long-term Export Credit Insurance is designated to support Chinese exporters ininternational competition, especially in mechanical and electronic products, complete plantequipment packages and overseas construction project area. This insurance is also calculated tosupport financial organizations, such as banks, to provide exporters with financing. Medium- andlong-term export credit insurance is a policy insurance. It includes:• Buyer’s credit insurance programme with buyer’s credit financing, obligating SINOSURE to

underwrite a loan bank’s default of payment by the borrower or guarantor.• Supplier’s credit insurance programme with supplier’s credit financing, obligating the

SINOSURE to underwrite the exporter’s overseas receivables.

Investment InsuranceInvestment Insurance is a business intended to provide the insured with risk guarantee whenthey suffer economic losses because of war, currency exchange ban, requisition, or breach ofcontract by the government in countries where the insured have made investments. It isdesigned to support and promote Chinese companies and financial organizations in makingoverseas investments, and to encourage and advance overseas investors to make investments inthe Chinese mainland. It includes• Overseas investment insurance is designed to support and encourage Chinese enterprises

and financial organizations to make investments overseas. It obligates the insurer tounderwrite an investor’s economic losses in overseas investment and profits caused bypolitical risks of a host country. It consists of equity insurance and liability insurance.

ChinaExport Credit Agencies


• Inbound investment insurance is designed to encourage and promote investors from foreigncountries and Hong Kong, Macao, and Taiwan to make investments in the Chinese Mainland.It obligates the insurer to underwrite all economic losses of overseas investors incurred intheir investments and profits because of political risks in China. It consists of equityinsurance and liability insurance.

Bond and Guarantee BusinessGuarantee business serves Chinese exporters and banks that provide financing for export. It isdesigned to help Chinese companies improve credit rating and helps them to solve fund-raisingdifficulties in export. The two major categories of guarantee business are:• Financial guarantee providing Chinese exporters with guarantee of payment under the loans

from Chinese banks or other organizations for export. It consists of guarantee for exportproject loans and guarantee for export related working capital loans

• Non-financial guarantee offers non-financial guarantees, such as bid bonds, performancebonds, advance payment bonds, and quality maintenance bonds in export and overseasprojects.

Credit Assessment BusinessSINOSURE is capable of providing domestic and overseas clients with credit investigations andevaluation services concerning Chinese companies, enterprises, and overseas companiesthrough its unique data collection channel and scientific means. While offering customers aid intheir decision-making for business operations, SINOSURE is willing to help customers ward offand prevent operational risks, improve their capabilities in competitions and profit-making.

Buyer’s Credit Insurance Programme• Under the buyer’s credit programme, SINOSURE provides an insurance policy to lender(s) for

up to 85% Chinese contract value• SINOSURE’s insurance policy has a 95% comprehensive risk (both sovereign and commercial

risks) coverage.• SINOSURE is not an OECD member at the moment.• Exporter must be an legal entity registered in China with an exporting experience of minimum

3 years• Maximum repayment period is typically up to 10 years

Fees• Charged based on financed amount plus the estimated interest expense during the life of the

facility

China



The Export-Import Bank of ChinaThe Export-Import Bank of ChinaNo.30, Fu Xing Men Nei Street,Xicheng District,Beijing 100031,P.R.ChinaTel: (86) 10 8357 9988,83579000Fax: (86) 10 66060636Website: www.eximbank.gov.cn

Ownership: 100% owned by Chinese government

Function:To provide medium- to long-term funding and short term trade guarantees

Institution

The Export-Import Bank of China was founded in 1994. It is a fully government-owned policybank under the direct leadership of the State Council of China. Its current international creditratings are compatible to those of the sovereignty ratings of China. At present, the bank has 10business branches and 5 representative offices in China and three overseas representativeoffices in South Africa, Paris and St. Petersburg. So far, the bank has set up a correspondentbanking network of 510 foreign banks.

As an important force in the backup system of foreign trade and economy and a significantcomponent of the financial system, China Eximbank has developed into a key channel of policyfinancing for both Chinese export of mechanic and electronic products, complete set ofequipment, and high- and new-tech products and undertaking of offshore construction contractsand overseas investment projects. Meanwhile, the bank is also the major onlending bank offoreign government loans and the sole lending bank for Chinese Government Concessional Loanentrusted by the Chinese government. The bank is playing a more and more important role inpromoting the development of the open and export-oriented economy of the country.

MissionThe main mandate of the bank is to implement the state policies in industry, foreign trade andeconomy and finance to provide policy financial support so as to promote the export of Chinesemechanical and electronic products and high- and new-tech products, to support Chinesecompanies with comparative advantages to ‘go global’ for offshore construction contracts andoverseas investment projects, to develop and strengthen relations with foreign countries, and toenhance Sino-foreign economic and technological cooperation and exchanges.



Business Scope• Export Credit and Import Credit;• Loans for offshore Contract project outbound Investment;• Concessional Loan from Chinese Government;• International Guarantee;• Onlending loans extended by foreign governments and financial institutions;• International and Domestic Settlement services and Corporate Deposit service under the

Bank’s loan facilities;• Funds raising from domestic and oversea capital and money markets;• International inter-bank loans service; Organizing or participating in international and

domestic syndicated loans;• Renminbi inter-bank borrowing & lending and bond repurchases;• Independent Foreign exchange dealing and approved foreign exchange dealing on

commission;• Credit record investigation, consultation, evaluation and witness services relevant to the

Bank’s business;• Other business approved or entrusted.

Business Activities

Export Supplier’s CreditThe Export Seller’s Credit (also ‘export supplier’s credit’) refers to the credit provided by ChinaEximbank to an exporter to finance its manufacturing or purchase of mechanical and electronicproducts, complete sets of equipment, and high- and new-tech products for export, targeting tosatisfy the fund demand of the exporter for manufacturing and purchase of export goods andrelevant labor services required in the course.

Export buyer’s creditThe export buyer’s credit refers to the medium and long-term credit offered by the Bank tocreditworthy foreign borrowers to support the export of Chinese capital goods, services andoverseas construction projects. With a competitive interest rate and a longer period of time, theexport buyer’s credit can facilitate foreign importers to make prompt payment to Chineseexporters for the exported products and services. The operations generally follow theArrangement on Guidelines for Officially Supported Export Credits as developed by OECD.

Financing Structure• The maximum maturity period is 15 years from the date of the first disbursement of the loan

to the last repayment date as stipulated in the loan agreement. However, under the OECDconsensus, normally up to 10 years; for ship financing, tenor can further go up to 12 years.

• Either Commercial Interest Reference Rate (CIRR) or LIBOR based floating rate.• Currency is normally US dollars or other currencies acceptable to China Eximbank. China Exim

prefers to co-finance with international banks or provide funding based guarantee/insurancesfrom international banks, Sinosure or reputable private insurance companies.

Chinese government concessional loanThe Chinese government concessional loan (the loan) refers to the medium and long-term, low-interest-rate credit extended by the bank under the designation of the Chinese government, tothe government of the recipient country with the nature of official assistance. The loan is utilizedmainly for the purpose of supporting the recipient country to implement manufacturing projects

China



with favourable economic returns or good social benefits, infrastructure and social welfareprojects, or to purchase mechanical and electronic products, complete sets of equipment,technical services as well as materials from China. The specific utilization of the loan should besubject to the stipulation of the framework agreement between the two governments.

On-lending of foreign government loansOn-lending of foreign government loan (the loan) refers to either the concessional loan or themixed credit provided by a foreign government that is on-lent by China Eximbank as designatedby the Chinese Ministry of Finance.

International guaranteeInternational guarantee services offered at The Export-Import Bank of China refer to the letters ofguarantee the bank issues to the creditor overseas or the beneficiary (including foreign- fundedfinancial institutions based in China) committing itself to fulfil the obligations stated in the letterwhen the debtor or the guaranteed fails to service a debt or fulfil obligations in accordance withthe relevant contract or contracts. The services is widely used the manufacturing companies inship building, high-tech, power, telecommunication industries. Target sectors include the exportof Chinese-made mechanical and electronic products, complete sets of equipment, and high-and new-tech products as well as the ongoing global projects by Chinese companies includingoverseas construction contracts, offshore processing trade and overseas investment projects.Besides, those international tender projects based in China as financed by international financialinstitutions and foreign government loans are also within the coverage of this service

Domestic and International settlement

Application contactInternational Business Department,The Export-Import Bank of ChinaTel: (8610) 83579063, 83579043, 83579049Fax: (8610) 83579034SWIFT:EIBCCNBJ

Corporate Business Department I,The Export-Import Bank of ChinaTel: (8610) 83578325, 83578294, 83578287Fax: (8610) 83578344

Corporate Business Department II,The Export-Import Bank of ChinaTel: (8610) 83578351, 83578372, 83578352Fax: (8610) 83578404

Concessional Loan Department,The Export-Import Bank of ChinaTel: (8610) 83578465,83578472Fax: (8610) 83578516

On-lending Department, The Export-Import Bank of ChinaTel: (8610) 83578536,83578543,83578548Fax: (8610) 83578568



Fondo Nacional de Garantías S.A. (FNG)Carrera 13 No. 32 – 51 Int. 1BogotáColombiaTel: 3239000 ext. 4048www.fng.gov.co

Institution

The Fondo Nacional de Garantías S.A. (FNG) is an anonymous society of mixed economy, linkedto the Commerce, Industry and Tourism Department of Colombia and submitted to the surveyand control of the Superintendencia Bancaria de Colombia.

It’s mission is to facilitate access to financial resources for micros, small and middle business inColombia providing guarantees. These kinds of business due to their condition of risk, find it hardto access to this kind of financial resource in the institutional market.

The Fondo Nacional de Garantías S.A. operates as a ‘first floor’ guarantee entity, it is also theonly one in Colombia which is willing to assume the risk in the guarantee operations directed tothe ‘micro’, small, and middle-sized business.

The business scheme is founded in the following principles:• Risk share• Automaticity of guarantees• Diversification and atomisation of risks• Financial sustainability

The fact, that the guarantees will be given automatically implies that the FNG delegates thefinancial entity the decision to grant the guarantee, to clients who accomplished the profilerequired, which means, that, the FNG won’t participate in the grant process. This schemeinvolves a high agility level, by leaving total autonomy to the financial entity in the decision ofcredit and guarantees contribution.

The automatic guarantee scheme is viable having on account that the risk in the operation will beshared, by both, the FNG and the business. It allows the generation of important operationalvolumes, which redound in diversification, and automaticity of the assumed risks.

Guarantees

Endorse credit operations to companies up to a specified level of assets in every economicsector, except agricultural, when they present viable projects. The credits can be destined forworking capital, fixed investement, company capitalization or entrepreneurship.

Automatic guarantees:It’s necessary that the financial institution has a signed contract of protocol of communicationswith the FNG, after a study of risk to the entity. This allows the FNG to determine the maximum

Colombia



risk level. The businessman submits his credit request directly to the financial institution withoutneeding to proceed at the FNG.

Individual guarantees:They need evaluation and approval, before the disbursement, on the part of the FNG. The creditoperations are covered up to 80%, with a maximum value in guarantees of approximately$425,000 by the client.

The businessman can request the guarantee directly from the financial institution or the FNG.

Institutional guarantees:Used by cooperatives, NGO’s and compensation entities, which grant credit to themicrocompanies or to buyers of social interest homes, which request credit at a financialintermediary and/or rediscount entity.

Colombia



Banco de Comercio Exterior de Colombia(Bancoldex)Calle 28 #13 A-15Pisos 38-42Santa Fe de BogotáColombiaTel: (+571) 382 15 15Fax: (+571) 286 02 37

(+571) 286 24 51Website: www.bancoldex.com


Function:Provides short-, medium- and long-term finance

InstitutionBanco de Comercio Exterior de Colombia (Bancoldex) provides refinancing. No interest support isoffered. Bancoldex has a dedicated project finance department. It is not bound by OECD consensus.

FinancingBancoldex offers loans via the discounting of commercial bank loans.

Application• Supplier may apply for a letter of interest or preliminary commitment.• Borrower and supplier may apply for final commitment.

Loans• Bancoldex provides short-, medium- and long-term to:

– promote export and production.– expand export-related production facilities.– support and promote M&A abroad.

• Can be available in local currency and US dollars.• Maximum financing of the export value is 100%.

Funding• Repayment terms are up to one year for short-term loans, between one and three years for

medium-term loans and up to eight years for long-term loans

Fees• No processing/application fee is charged.• No commitment fee on the loan is charged.

Colombia



Croatian Bank for Reconstruction andDevelopment (HBOR)Strossmayerov trg 910000 ZagrebCroatiaTel: (+385) 1 4591 545

(+385) 1 4591 539Fax: (+385) 1 4591 547E-mail: [email protected], [email protected]; [email protected],

[email protected], [email protected];Website: www.hbor.hr

Senior Management:Mr. Anton Kovacev, President of the Managing BoardMs. Emilija Nagj, Member of the Managing BoardMr. Mladen Kober, Member of the Managing Board

Contacts:Export and Tourism DepartmentMario Peric, Managing DirectorE-mail: [email protected]

Export Credit InsuranceAndreja Mergedu?, Managing DirectorE-mail: [email protected]

Funding DepartmentHarun Tankovic, Managing DirectorE-mail: [email protected]


Rating: Baa3/BBB-

Function:Provides short, medium and long-term finance and export credit insurance.

CroatiaExport Credit Agencies


Institution

HBOR is a national development and export bank as well as export credit insurer. The Bank wasestablished in June 1992 by the Act on Hrvatska kreditna banka za obnovu (HKBO) and wasrenamed Hrvatska banka za obnovu i razvitak (HBOR) by amendments to the above Act passed inDecember 1995. The latest Act on Hrvatska banka za obnovu i razvitak was introduced inDecember 2006 and regulates today’s bank activities.

HBOR, in its operations, promotes sustainable and even economic and social development inaccordance with the strategic objectives of the Republic of Croatia.

The bank’s main activities include:• Financing the reconstruction and development of the Croatian economy;• Financing infrastructure;• Promoting exports;• Supporting the development of small and medium-sized enterprises;• Promoting environmental protection;• Insuring exports of Croatian goods and services against non-marketable risks.

Export Credit Insurance

HBOR provides companies, commercial banks and other financial institutions with state-backedcover for export transactions. The export credit insurance unit offers insurance againstcommercial and political risks that incur in export transactions.

Insurance products:• Short-term export credit insurance and reinsurance of non-marketable risks• Medium/long-term export credit insurance• Insurance of bank guarantees• Outward investment insurance

Cover is available:• for pre-shipment and credit risks;• for short and medium/long-term transactions;• for bank guarantees• for new investments abroad;• in foreign currencies;• up to 85% for short-term insurance;• for supplier credit (up to 90%) and for buyer credit (up to 95%);• up to 85% of the eligible contract value can be insured for credits of two and more years;• up to 80% for bank guarantees• insurance can be provided for floating-interest or fixed-interest rate loans.

Croatia



Fees:• An application fee is charged;• Premium is charged up-front for medium and long-term cover and monthly for short-term

cover. Premium is calculated on the amount of principal or on the volume of receivables.Premium payment pro-rata with the loan disbursement is possible for medium and long-terminsurance.

• Premium for insurance of bank guarantees is charged upfront, one-off for cover of risk ofunfair calling, and quarterly for cover of risk of fair calling. The premium is calculated on thebank guarantee amount.

• In January 2010 a new insurance company (Croatian Credit Insurance J.S.C. (HKO)) formarketable risks was established by HBOR & OekB Südosteuropa GmbH. As the firstspecialized credit insurer in Croatia covering short term credit risks, HKO added new value tothe Croatian economy, offering companies a tool to improve risk management and paymentdiscipline. The products of the Company are complementary to HBOR’s export creditinsurance service for the coverage of non-marketable risks. In October 2010 HKOincorporated as the sole shareholder a limited liability company (Poslovni info servis L.L.C.(PIS)). Main field of operation activities of the Company is: services in connection with lendingtransactions: collecting information, preparation of analyses and giving information oncreditworthiness of legal and natural persons/sole proprietors.

Financing

HBOR provides pre-shipment export finance (revolving credits with repayment term of up to 1year) and post-shipment export finance (Buyer credit – direct loans to buyers of Croatian goodsand services and Supplier credit – direct loan to an exporter granting credit to its buyer abroad).

Post-shipment export finance is implemented in compliance with the OECD Consensus:• Fixed rate (CIRR + margin) or floating rate (+ margin) is available;• Up to 1% of management fee is charged for post-shipment export credits;• Possibility of financing up to 100% of the insurance premium• HBOR is authorized to extend guarantees and issue letters of credit in both Croatian Kuna

and foreign currencies.

Guarantees

For the purpose of participating in international tenders, HBOR supports Croatian exporters bygranting the required bonds / guarantees such as tender bond / guarantee, performance bond /guarantee, advance-payment bond / guarantee and warranty bond / guarantee.

FundingHBOR seeks funding in international financial and capital markets.

CroatiaExport Credit Agencies



ECA alliances/agreements• HBOR cooperates with a wide range of organizations, including export credit agencies,

international banks as well as supranational institutions in order to serve the needs ofCroatian entrepreneurs.

• HBOR has concluded cooperation agreements with nearly 50 different export credit agenciesand development banks. These agreements aim to develop cooperation in providinginsurance cover to exporters from Croatia and respective countries that would like to worktogether in third countries and provide exchange of information.

Member and active participant of:• Prague Club• European Association of Public Banks – EAPB Managing Board president in the period

December 2010 to December 2012 – Anton Kovacev (HBOR)• Banking Association for Central and Eastern Europe• UN Enviroment Programme• UN Global Compact Initiative• ISLTC Club• NEFI

HBOR is EIF shareholder.

Croatia



Export Guarantee and InsuranceCorporation (EGAP)Vodickova 34, P.O.Box 6111 21 Prague 1, Czech RepublicTel: (+420) 222 841 111Fax: (+420) 222 844 001Website: www.egap.cz

Contacts:Karel Pleva, Chairman of the Board of Directors and Chief Executive OfficerE-mail: [email protected]

Vincent Sinsky, Director, International Relations DepartmentE-mail: [email protected]


Function:Provides short-, medium- and long-term non-marketable credit and political risk insurance andinvestment insurance

Institution

The Export Guarantee and Insurance Corporation (EGAP) provides insurance cover. The mainproducts available include short-term supplier credit insurance of non-marketable risks,insurance of a short-term export supplier credit financed by a bank, insurance of medium- andlong-term export supplier and buyer credit and L/C, insurance of a medium- and long-termexport supplier credit financed by a bank, investment insurance, insurance of a credit for thefinancing of investments of Czech legal persons abroad, pre-export financing insurance,insurance of export contract-related bonds, insurance of manufacturing risk and insurance offoreign markets prospection. Policies provide standard cover up to 95% for political andcommercial risks. EGAP is bound by the OECD Arrangement, other EU and OECD rules andcarries the full faith and credit of the government. Project finance is managed within theunderwriting department. The Czech Export Bank is an associated institution. Short-termcommercial credit insurance had been divested into an independent subsidiary – KUPEG CreditInsurance Company (KUPEG) since October 2005, who run this business on their own account. Amajority share in the subsidiary was sold to a strategic partner in 2007.

Czech RepublicExport Credit Agencies


EGAP covers export credits, investments and export contract related bonds to all countries of theworld, the majority of portfolio is however in Russia and CIS, countries of Central and EasternEurope, Middle East and East Asia.

Application• Borrower, lender and supplier may apply for a letter of interest, preliminary commitment or

final commitment.• On average it takes two weeks to process an application. If all necessary information is

available the average processing time is five days for a standard deal.• EGAP does not have a response charter.

Cover• At least 50% (in justified exceptional cases at least 20 %) of Czech origin export deliveries

are required, principal of national interest is being introduced.• Capitalized interests during construction might be covered.• Up to 30% of the export contract value of local content can be insured according to the

OECD Arrangement.• Short-, medium- and long-term insurance is available. Short-term insurance is up to two

years and medium and long-term cover is over two years.• Cover is provided in Czech crowns (CZK). CZK is a fully convertible currency. The export

contract may be denominated in any major free convertible currency, exchange rate risk iscovered without any surcharge.

• Investment insurance and insurance of a credit for financing of an investment can beavailable for political risks, including expropriation, breach of contract and political acts ofviolence. Insurance of a credit for financing of an investment covers commercial risk as well.

• Bills covered by insurance policies cannot be freely transferred.• Policies for smaller businesses are available.• Residual risk does not have to remain with the lending bank – the supplier can carry up to

one half of the risk retention.

Maximum insurance of export valueStandard conditions of provided insurance cover are as follows (credits for 85% of the exportcontract value):buyers political commercialprivate 95% 95%public 95% 95%sovereign 95% 95%

maximum coverage of export credit insurance (%)political risks commercial risks

short-term 90 90medium-term 95 95long-term 95 95

Interest• Insurance can be provided for fixed-interest rate or floating-interest rate loans.• Delay interest (the interest cost incurred between non-receipt of payment under the loan and

payout under the export credit agency) is covered.

Czech Re

public



Funding• Funding from own resources (premium written, recoveries and earned interest on investment)

and from state budget appropriation.

Fees• Premium is charged up-front. Premium is calculated on the amount of principal or on the

volume of receivables. Premium payment pro-rata with the loan disbursement is possible formedium and long term credits.

• A fee is charged if an application is cancelled.


• There is a claims waiting period.

ECA alliances/agreements• EGAP has cooperation agreements with: US Ex-Im Bank (USA), ECGD (UK), EDC (Canada),

ECGE (Egypt), ECGC (India), EximBank (Romania), UZBEKINVEST (Uzbekistan), TEBC (Taiwan),Eximgarant (Belarus), Vnesheconombank (Russian Federation), CAF (Latin America), Cofide(Peru), Banco de la Nacion (Peru), HBOR (Croatia), and BAEZ (Bulgaria).

• Framework reciprocal reinsurance agreements have been concluded with: Cesce (Spain),Coface (France), Atradius (The Netherlands), OeKB (Austria), Euler Hermes (Germany), ONDD(Belgium), Eximbank SR (Slovak Republic), SACE (Italy), SERV (Switzerland), Finnvera(Finland), GIEK (Norway), EKF (Denmark), EKN (Sweden), MEHIB (Hungary), and KUKE(Poland).

All following data without ST commercial credit insurance:

Value of guarantees issued during 2011:• Short-term $ 119 million• Medium/long-term $ 2,551 million

Value of claims paid during 2011:• Short-term $ 8.14 million• Medium/long-term $ 36.13 million

Value of recoveries (principal and interest):• 2011 $ 24.16 million• 2010 $ 3.30 million

Total premium written:• 2011 $ 113.27 million• 2010 $ 120.42 million



Czech Export Bank, a.s.Vodickova 34P.O. Box 870111 21 Prague 1Czech RepublicTel: (+420) 222 843 256Fax: (+420) 224 228 593Website: www.ceb.cz

Contacts:Miloslav Dudek, Director, International Relations & Fund RaisingE-mail: [email protected]

Ownership structure:Joint stock company, 100% government owned.

Institution

Czech Export Bank (CEB) provides short-, medium- and long-term export loans as well as pre-export financing. The bank is bound by the OECD Consensus and carries the full faith and creditof the government. The Export Guarantee and Insurance Corporation (EGAP) is an associateinstitution, together forming the official ECA of the Czech Republic.

Financing

Application• Borrower or supplier may apply for a letter of intent or preliminary commitment or final

commitment.• Time to process an application is determined case-by-case. An indicative offer is given within

approximately two weeks.• CEB does not have a response charter.

Loans• are provided with up to 100% political risk cover,• short-term loans are provided with up to 95% commercial risk cover,• medium- and long-term loans are provided with up to 95% commercial risk cover.• Commercial banks can refinance their export loans through CEB.• Repayment terms are based on OECD Consensus for medium- and long-term loans. For

short-term loans, market terms and conditions apply for up to two years.

Czech Re

public



• Fixed CIRR interest rates are supported.• Interest rate commitment is charged with 0.2% margin over CIRR.

Funding• CEB seeks funding on international financial and capital markets.

Fees• A processing/application fee is charged on real cost.• Usual banking fees are charged on a case-by-case basis.• Commitment fee on the loan is 0.2% to 0.5% of the undisbursed portion.

Project Financing

One of the CEB’s core activities: having experience in management of both commercial andsovereign risks and in arrangement of financing jointly with commercial banks, both domesticand foreign, CEB is able to provide a most complex financing to satisfy a project during its entirelife cycle.

General terms and conditions required by CEB under project financing:• At least 20% equity is required.• The level of risk sharing by arranging/commercial lending banks is determined on a case-by-

case basis.• Recourse to a project sponsor/supplier is determined on a case-by-case basis.• Requirement of an independent engineer’s report on the project and/or the bank’s report is

determined on a case-by-case basis.• Sponsors must share 25% to 30% of risk.

Cover provided for project finance is highly individual. The following pointsmay apply:• Between 60% and 70% of total project finance can be covered.


ECA alliances/agreements• The Czech Export Bank has cooperation agreements with US ExIm Bank, EDC (Canada),

EBRD, Eximbank (Hungary), Eximbank (India), Eximbanka (Slovakia), Eximbank Romania,Vneshekonombank, Ukreximbank and others. These generally cover third country co-financing, two-stage financing and information exchange.



Eksport Kredit Fonden (EKF)Lautrupsgade 112100 CopenhagenDenmarkTel: (+45) 35 46 26 00Fax: (+45) 35 46 26 11Website: www.ekf.dk

Contact:Anette Eberhard, CEOSoeren Moeller, Deputy CEO Jan Vassard, Deputy CEOErling Frandsen, Senior Director, Large CorporatesKim Richter, Director, SME & Cleantech

Ownership structure: 100% sovereign. EKF is a state-owned agency with its own equityand governed by a Board of Directors.

Function: Provides working capital guarantees, short-term reinsurance, medium- and long-term insuranceand access to funding through the Danish Export Loan Scheme and partnerships with pensionfunds.

Institution

The key objective of EKF is to strengthen the international competitiveness of Danish businessand industry, thereby contributing to Denmark’s economic growth. A condition for EKF’sinvolvement in transactions is that the activity represents an acceptable Danish economicinterest. This is assessed, inter alia, on the basis of value added, ownership and production. Inthis way EKF can accommodate the needs of today’s globalised world, whereby goods may beproduced abroad, while the value added and capital returns on production are repatriated toDenmark.

Insurance

EKF provides insurance cover, which can cover up to 100% of political and 95% of commercialrisks. For smaller guarantees to SMEs EKF can cover up to 100 % of commercial risk.

Cover• Through a Working Capital Scheme EKF offers working capital guarantees to Danish

exporters and their sub-suppliers

Denm

ark



• Up to 100% of 85% of the import contract plus up to 30% local content can be insured.• Up to 100% of the premium can be capitalised into the loan value.• Third country goods can be covered in accordance with the regulations of “Danish economic

interest”.• Medium- and long-term insurance including project finance is available. Short-term is

typically provided indirectly through reinsurance to the credit insures. However, for short-termL/Cs EKF cover the banks on a risk & fee sharing basis.

• EKF participates in project financing.

EKF provides foreign buyers access to funding through Danish Export Loan Scheme andpartnerships with pension funds.

Application• Lender, supplier and buyer in the foreign country may apply for a letter of interest,

preliminary commitment or final commitment.• EKF can issue a free-of-charge conditional offer for guarantees based on an application. EKF

does not have a response charter.

Products• EKF offers direct export loans to foreign buyers through the Danish Export Lending Scheme

and partnerships with pension funds• Insurance can be available for multiple sales financed under a single line of credit provided

by a bank to foreign banks or buyers.• Cover can be provided in all leading OECD currencies and Euro. Cover in other currencies

(including local currencies) is considered case by case.• Investment insurance is offered.• Insurance policies offered to exporters can freely be transferred to banks.• Cover can be provided regardless of the size of the amount (no minimum or maximum

restrictions)• EKF provides a bond insurance policy.

Percentage of covercommercial up to 95/95bank up to 95/95 (up to 100/100 for smaller guarantees to SMEs)sovereign up to 100%

Interest• Insurance can be provided for fixed-interest rate or floating-interest rate loans.• Delay interest (the interest cost incurred between non-receipt of payment under the loan and

payout from the export credit agency) can be insured.• The usual delay/claim period from default to pay-out is 120 days.

Funding• Through a temporary Export Lending Scheme and partnerships with pension funds EKF offers

direct export loans to foreign buyers• Commercial banks or government institutions can supply funding.

Denmark



Fees• No processing/application fee is charged.• Premiums are generally charged up-front, however, in specific cases the premium can be

charged pro rata or on a per annum basis. Premiums are charged on the financed amountonly.

Additional information

Re-insurance agreements for medium- and long-term insurance:

ECAs:Austria (OekB), Belgium (OND), Czech Republic (EGAP), Estonia (Kredex), Finland (FINNVERA),France (Coface), Germany (Hermes), Holland (ATRADIUS), India (ECGD), Italy (SACE), Luxemburg(ODL), Norway (GIEK), Spain (CESCE), Sweden (EKN), Switzerland (SERV), United Kingdom (ECGD),USA (US Ex-Im).

Private insurers:• Sovereign• Zurich

Cooperation agreements• MIGA, ADB, Turk Eximbank (Turkey), Ukreximbank (Ukraine), Vneshtorgbank (Russia),

Vneshekonombank (Russia)

EKF:• acts in accordance with the OECD Recommendation on environmental rules regarding export

credits• is committed to the UN Global Compact• has adopted the Equator Principles which apply for project finance transactions• complies with the OECD Convention on Combating Bribery and § 122 of the Danish Criminal

Code regarding bribery• Follows OECD’s principles and guidelines to promote sustainable lending practices.

Denm

ark



Export Credit Guarantee Company of Egypt(ECGE)5 El Nasr Street.,Nasr City- Cairo-Cairo 11371EgyptTel: (+202)22636740-22636745-22636762Fax: (+202)22636825E-mail: [email protected]: www.ecgegypt.net

Ownership structure: 95% Public, 5% private

Function:Short-term& medium-term export credit & domestic credit insuranceExport-import & domestic factoringBuyer information reportsExport debt recovery

Institution

The Export Credit Guarantee Company of Egypt (ECGE) provides insurance cover. Policies coverup to 80% for both political and commercial risks.

ECGE carries the full faith and credit of the government. The company is not bound by OECDconsensus and does not have a project finance department. Commercial banks provide thesource for lending.

Insurance

ECGE provides short-term & medium-term export credit insurance to exporters of nationalproducts. Products offered include a comprehensive policy for goods and services that providespost-shipment cover for a one year credit period; a single transaction policy that provides coverfor political and commercial risk for up to 7 years credit period, and an unconfirmed letters ofcredit cover for banks against commercial and political risk for a one year credit period, post-shipment. Export service cover policy with post shipment cover for a one year credit period and atrade fair cover policy.

Domestic credit insurance policy for a credit period up to one year

Application• Exporters of national product or service may apply for a letter of interest or preliminary

commitment.

EgyptExport Credit Agencies


Cover• Up to 80% of the eligible contract can be insured.• The premium cannot be capitalized into the loan value.• Third country goods are not covered.• Interest during construction is not covered.• Local content is insured.• Insurance is available for short-term & medium term political and commercial risks.• Insurance can be available for multiple sales financed under a single line of credit provided

by a bank to foreign banks or buyers.• Bills covered by insurance policies cannot be freely transferred.• Cover can be provided in foreign currencies.• Cover for non-payment can be provided.• Cover for non-receipt of goods by importer can be provided.• Cover for bankruptcy can be provided.• Residual risk must be carried by the supplier.

maximum insurance of export value (%)buyers political commercialprivate 80 80public 80 80sovereign 80 80

Interest• No interest support is offered.

Funding• Commercial banks and government departments/agencies supply funding.

Fees• Pprocessing/application fee is charged.• Premia are charged on a monthly basis. They are charged on the export value shipped.

FactoringFull service recourse and non recourse export / import and domestic factoring with financescheme of 90% of invoices purchased.


ECA alliances/agreements• ECGE is a member of Credit Alliance.• Member of Prague Club for Credit Insurers.• Member of Factors Chain International

Egypt



KredEx Credit Insurance LtdHobujaama 4Tallinn 10151EstoniaTel: +372 6674 100Fax: +372 6674 101E-mail: [email protected]: www.krediidikindlustus.ee

Founded: 2009

Ownership structure:Ministry of Economic Affairs and Communications 2/3 and Credit and Export GuaranteeFund KredEx 1/3.

Functions:• Short-Term Export Credit Insurance• Medium- and Long-Term Export Credit Insurance

Institution

KredEx Credit Insurance Ltd is a state owned insurance company that provides short-, medium-and long-term trade credit insurance coverage for Estonian companies.

More information: www.kredex.ee, www.krediidikindlustus.ee

EstoniaExport Credit Agencies


Finnvera plc and Finnish Export Credit LtdContacts:Mr Topi Vesteri, Executive Vice PresidentExport Credit GuaranteesTel: +358 29 460 2676

Mr Tuukka Andersén, Vice President, Head of UnderwritingExport Credit Guarantees UnderwritingTel: +358 29 460 2688

Mr Pekka Karkovirta, Vice PresidentInternational RelationsTel: +358 29 460 2768

Ms Raija Rissanen, Vice PresidentForeign Risks and Political RecoveriesTel: +358 29 460 2726

Ms Anita Muona, Managing DirectorFinnish Export Credit LtdTel: +358 29 460 2673

Ownership structureFinnvera is a100% state-owned company. Finnish Export Credit is Finnvera’s subsidiary.

FunctionsProvides short term and medium/long term export credit guarantees, investment insurance aswell as interest rate equalisation and financing of export credits arranged by commercial banks.

Institutions

Finnvera is a specialised financing company offering a full range of export credit guaranteeproducts to promote exports and internationalisation of enterprises. Finnvera’s subsidiary FinnishExport Credit provides interest rate equalisation at CIRR rates, and can finance export creditsarranged by commercial banks. All services are available through Finnvera’s Export FinancingUnit, which is organized into two teams (structured finance and trade finance).

Street address:Eteläesplanadi 800130 HELSINKIFinlandMailing address:FinnveraP.O. Box 101000101 HelsinkiFinlandTel: +358 29 460 11

Mailing address:Finnish Export Credit (FEC)P.O. Box 12300131 HelsinkiFinlandTel: +358 29 460 11E-mail: [email protected]: www.finnvera.fi

Finlan

dExport Credit Agencies


Guarantees

Finnvera offers a number of products covering commercial and political risks, including buyercredit guarantee, credit risk guarantee, export receivables guarantee, investment guarantee,letter of credit guarantee, bank risk guarantee, bond guarantee, finance guarantee and rawmaterial guarantee.

Finnvera´s guarantees are issued under the full faith and credit of the Finnish government.

Cover• To be eligible for Finnvera cover, export transactions need to meet the requirement of Finnish

interest.• Local costs can be covered up to 30% of the export contract value, according the OECD

Arrangement.• Pre-commissioning interest can be capitalized, for example in project financing.• Finnvera may cover political and/or commercial risks in both the pre-and post-completion

periods.• Transactions in all major OECD -currencies can be supported. Also transactions in

established emerging market currencies can be supported by Finnvera’s Local CurrencyFinancing Scheme.

• Finnvera offers cover also for project finance transactions.• Insurance for overseas investments is provided

– Political risks, such as transfer and convertibility, expropriation and war, are covered– Long-term investment, minimum three years and maximum 20 years, in the form of

equity, shareholder loans, bank loans and guarantees can be covered.

Standard percentages of coverThe normal percentage of cover for political and sovereign risks is 100%; commercial riskcoverage can vary between 50–100%.

Fees• A handling fee is charged when issuing guarantees.• Premia are risk-based. Normally, premia are paid up front and are charged on the

guaranteed principal of the loan amount. In buyers’ credit transactions, premia are chargedfrom each drawdown of the loan.

Interest rate equalisationFinnish Export Credit provides CIRR based interest rate equalisation for medium and long termexport credits. Credits can be provided by domestic and foreign investment grade financialinstitutions which have executed a co-operation agreement with FEC.

Financing of export creditsFinnish Export Credit supports the financing of medium and long term export credits. Commercialbank arranges and administrates a buyer credit, which is transferred to Finnish Export Credit forfinancing. The buyer credit is always backed by Finnvera’s export credit guarantee. Finnveraacquires the funds needed for export credits. The acquisition of funds is supported by aguarantee from the Republic of Finland.

FinlandExport Credit Agencies



ECA alliances/agreements• Finnvera has reinsurance agreements with: Atradius (Netherlands), ECICS (Singapore), ECGD

(UK), EGAP (Czeh Repb.), EKF (Denmark), EKN (Sweden), GIEK (Norway), Euler Hermes(Germany), MIGA (multinational), Nexi (Japan),OeKB (Austria), ODL (Luxemburg), OND(Belgium), Kredex (Estonia), SACE (Italy), SERV (Switzerland) and Steadfast InsuranceCompany (USA)

• Finnvera has co-operation or joint guarantee agreements with CABEI (multinational), Coface(France), EBRD (multinational), IIC (multinational), KEIC (South Korea), MIGA (multinational),OPIC (USA), US Ex-Im Bank (US), Vneseconombank (Russia), and SINOSURE (China).

Finlan

dExport Credit Agencies


Coface12 Cours Michelet, La Défense 1092800 Puteaux, FranceTel: (+33) 1 49 02 20 00Fax: (+33) 1 49 02 27 11Website: www.coface.com

Contact:Marie-Laure MeunierTel: (+33) 1 49 02 17 48E-mail:[email protected]

Ownership structure: 100% private. Wholly owned subsidiary of Natixis.

Function:Provides short-medium-long-term credit insurance and related services.

Institution

Founded in 1946, Coface, rated AA- (stable outlook) by Fitch Ratings and A2 (stable outlook) byMoody’s, is a subsidiary of Natixis, whose Core Tier 1 ratio is 10.2% end December 2011.

The Coface Group assists companies –regardless of their size, business sector or country- asthey grow within their domestic and export countries. In order to accomplish this, it offers creditinsurance solutions that aim to protect businesses against the risk of financial default by theircustomers. The Group helps to support its clients by assessing and preventing risks, so that theycan make the right decisions at the most opportune moment thanks to comprehensive, detailedanalysis of country, sector and credit risk.

Coface products

Credit insuranceCredit Insurance helps businesses to manage the credit that they grant to their customers andprotects them against the risk of customer default. Its purpose is to secure their tradereceivables, optimise their management and support business growth.

FactoringFactoring is a funding source that enables businesses to raise cash on receivables before thedue date. The factor immediately provides the business with funds corresponding to the futurepayment of invoices.

FranceExport Credit Agencies


ServicesCompany information services make it possible to assess the financial condition of commercialpartners and their capacity to honour commitments. Trough receivables management, companiescan manage their billing and recoveries of amounts due.

Public guarantees for French exporters on behalf of the French StateCoface offers a comprehensive array of insurance cover to support the international strategies ofFrench companies wishing to survey foreign markets, invest abroad and/or export their goods orservices.

Fran

ceExport Credit Agencies


Euler Hermes Kreditversicherungs-AG(Euler Hermes EH GERMANY)Friedensallee 25422763 HamburgGermanyTel: (+49) 40 8834 0

(+49) 40 8834-9192 9000 (ECA activities)Fax: (+49) 40 8834 7744

(+49) 40 8834-9175 (ECA activities)Website: www.eulerhermes.com/ger

www.eulerhermes.comwww.agaportal.de (ECA activities)


Function:Provides short-, medium- and long-term credit insurance

Institution

Euler Hermes Kreditversicherungs-AG changed its name in March 2012. The new name is nowEuler Hermes Deutschland AG (also known as EH Germany GERMANY). It is the leading creditinsurance company in Germany. Together with its subsidiaries, the Euler HermesForderungsmanagement GmbH and the Euler Hermes Risk Management GmbH & Co. KG, itoffers a wide range of products in the field of risk management.

Under the Official Export Credit Guarantee Scheme of the Federal Republic of Germany, EulerHermes EH GERMANY handles on behalf and for the account of the Federal Government shortterm and medium/long term export credit guarantees (supplier and buyer credit risk cover),whole turnover policies and pre-shipment risk cover.

The management of the Official Export Credit Guarantee Scheme is delegated to a consortiumconsisting of Euler Hermes Deutschland AG and PricewaterhouseCoopers AGWirtschaftsprüfungsgesellschaft (PwC). These companies have been appointed and authorized tomake and receive all declarations pertaining to export credit guarantees on behalf of the FederalGovernment.

All decisions regarding country cover policy and cover of certain projects are made by an Inter-Ministerial Committee (IMC), which is composed of representatives from the Ministry ofEconomics and Technology, the Ministry of Finance, the Ministry for Foreign Affairs and theMinistry for Economic Cooperation and Development.

Germany



Insurance

Given under the Official Export Credit Guarantee Scheme of the Federal Republic of Germany:

Types of coverThe following types of export credit guarantee are available:• Export credit guarantees for private buyers – these are issued where the foreign contractual

partner of a German exporter is a private enterprise which, in contrast to a public buyer, maybe the subject of an insolvency procedure.

• Export credit guarantees for public buyers – these are issued where the foreign contractualpartner of a German exporter or the guarantor is a government, a public authority or a similarbody entity.

• Export credit guarantees may be granted in favour of:

German exporters• in the period before shipment (manufacturing risk cover)• in the period after shipment (supplier credit cover)

Credit institutions financing German exports (buyer credit cover).

Manufacturing risk cover relates to the prime costs up to the premature ending of manufactureas a result of a covered event which makes the completion or delivery of goods impossible orunacceptable for the exporter for political or economic reasons.

Supplier credit cover protects the exporter against the credit risk, i. e. the inability to collect theexport debt due to political or commercial risks, starting from the date on which the goods wereshipped or the services rendered, up to the date of payment. The cover applies to receivables,including interest, stipulated in the export contract with the foreign debtor, due up to the due dateof payment.

Analogously to supplier credit cover, buyer credit cover protects the export financing bank againstthe risks that the foreign borrower does not reimburse the loan which is directly paid out to theGerman exporter depending on the deliveries made/services rendered.

Export credit guarantees protecting German exporters against credit risks are available in variousforms:• as specific policies which provide cover for the receivables for a single export contract

concluded with a foreign buyer;• if the same foreign buyer is supplied repeatedly on conditions of short-term payment, the

exporter may apply for a revolving private buyer or public buyer guarantee instead of aspecific policy which would require a separate application for each transaction. Allreceivables owed by the particular foreign buyer are covered up to the maximum limit set forthe revolving policy. Notification of the various shipments must be made monthly in the formof a list;

• if a number of foreign buyers in various countries are supplied repeatedly on conditions ofshort-term payment, a simplified procedure with lower premiums is available in the form of awhole turnover policy.

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In addition, special types of cover are available, such as cover for the confiscation risk affectingwarehouse stocks and articles exhibited at trade fairs abroad, the unfair calling of bonds given bythe German exporter and cover for constructional works and leasing contracts. Under the Federalcounter guarantee cover is also available against fair calling in cases where the foreign buyerrequires a contract bond from the German exporter to safeguard the exporter’s satisfactoryperformance of the export contract. In contrast to the already existing contract bond cover thebeneficiary of the new counter guarantee is the guarantor (usually a commercial bank), who hasissued the contract bond on behalf of the exporter. The counter-guarantee complements thecontract-bond-guarantee.

Percentage of coverThe exporter or bank must bear a certain share of the loss for every claim himself. As a rule, thepercentage of cover is as follows:

Supplier credit guarantees– 95% for political risks– Normally 85 % for for commercial risks, for a limited period of the time until the end of 2013

the insured portion can be risen upon application to 95 % against the payment of a premiumsurcharge

– Wholeturnover Policy– 95 % for political risks– normally 90 % for commercial risks; for a limited period of the time until the end of 2013 the

insured portion can be risen upon application to 95 % against the payment of a premiumsurcharge.

Wholeturnover Policy light– 90 % for all risks

Pre-shipment risk guarantees– 95 % for all risks

Buyer credit guarantees– 95% for all risks– 100% case-by-case only

Premiums and feesAn application fee, a prolongation fee and an issuing fee are charged for handling applicationsfor export guarantees. Premiums are charged for the export guarantees issued. They depend onthe following criteria: a country risk group (classified from 0 to 7); status of the buyer , type ofcover (e.g. pre- and post-shipment risks); amount of covered debt and terms of payment(particularly the credit period).

Application procedureApplications for cover have to be submitted to Euler Hermes Deutschland AG EH GERMANY, whichthen presents them to the Inter-Ministerial Committee for Export Guarantees for a decision.

Applications must comply with the generally accepted terms and conditions of international tradeas laid down in the Arrangement on Guidelines for Officially Supported Export Credits (OECDConsensusArrangement) and the recommendations of the International Union of Credit andInvestment Insurers (Berne Union).

Germany



Project Finance

EH GermanyGERMANY has special project finance facilities available on a case-by-case basis.


Bonds and guaranteesCover against: unfair calling; advance payment bonds; bid bonds; performance bonds; suretybonds and retention payment bonds; bonds/guarantees issued and against fair calling under theFederal Counter Guarantee.

ECA agreementsEH Germany has reinsurance framework agreements with the following ECAs: NEXI (Japan),SERV (formerly: ERG /(Switzerland), GIEK (Norway), SEC (Slovenia), EGAP (Czech Republic), ECGD(UK), OeKB (Austria), COFACE (France), EKN (Sweden), EKF (Denmark), FINNVERA (Finland),CESCE (Spain), SACE (Italy), ATRADIUS ( formerly: NCM / Netherlands), ONDD (Belgium), ODL(Luxembourg), EDC (Canada), KUKE (Poland), COSEC (Portugal), ASHR’A (formerly: IFTRIC /Israel), EFIC (Australia), US EXIM (United States), SLOVAK EXIM (Slovak Republic).

Joint insurance agreements exist with the ECAs from the EU member statesand with the following ECAs:GIEK (Norway)SERV (formerly: ERG /(Switzerland)Turk Eximbank (Turkey)

General co-operation agreements exist withSBCE (Brazil)NEXI (Japan)K-sure (formerly: KEIC /(Korea)Eximbank Romania (Romania)Vnesheconombank (Russia)

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Export Credit Insurance Organization (ECIO)57 Panepistimiou Street105 64 AthensGreeceTel: (+30) 210 3310017Fax: (+30) 210 3318410E Mail: [email protected]: www.ecio.gr


Institution

The Export Credit Insurance Organization (ECIO) provides export credit insurance cover againstboth commercial and political risks. The insurance policies cover up to 95% of the insured value.

ECIO is bound by OECD Consensus and carries the full faith and credit of the government, onlyfor non-marketable risks. The company does not have a project finance department althoughinsurance cover for project finance is provided by the medium/long-term department.

Function:Provides short-, medium- and long-term export credit insurance (Supplier’s Credit and Buyer’sCredit Schemes).

Insurance

EligibilityECIO can cover exports of goods or the provision of services having acquired an added value orhaving been produced or provided in Greece. The granting of coverage depends on the terms ofthe sales contract, buyer’s credit standing, conditions prevailing in the country of destination andthe good commercial standing of the applicant.

Application• Lender and/or supplier may apply for a letter of interest, preliminary commitment or final

commitment.

Cover• Up to 95% of the eligible contract value can be insured.• The premium cannot be capitalized into the loan or credit value.• Third country goods are not covered.

GreeceExport Credit Agencies


• Insurance may be available for multiple sales financed under a single line of credit providedby a bank to foreign banks or buyers.

• Cover is not provided in foreign currencies.• Bills covered by insurance policies cannot be freely transferred.• Residual risk has to remain with the lending bank or the supplier: the supplier or guarantee

bank should carry the risk.

Short-term business (Premiums)• Premiums are payable ten (10) days after shipment and are calculated on the basis of the

invoice value of the exported goods.• For short-term, premium rates range between 0.30% and 1.00% for commercial risks

(insolvency and protracted default) and between 0.30% and 2.40% for a “package” of fourpolitical risks. Actual premiums depend on the importing country’s status, risks covered,terms of payment and creditworthiness of the buyer. On average, premiums charged for“whole turn-over” policies are 50% lower than premiums charged for “selected shipments”policies.

Medium-long term business (Fees, Premiums)• A processing/application fee is charged for medium-long term insurance only.• Premiums are charged on the contract or loan value. Specific levels of premiums are set

according to OECD agreement on premiums and related conditions.

Project Finance

Cover provided for project finance is highly individual. The following points may apply:• For medium- to long-term insurance only 80-90% of political and commercial risks can be

covered during construction.• 30% (maximum) of local cost can be insured.


Foreign currency transactionsECIO only assumes liabilities and pay-out claims in domestic currency (EURO). Export contractsmay be concluded in foreign currency and the repayments received in that currency. The exportercan cover the exposed foreign exchange risk with the domestic forward exchange market.

Bond insuranceECIO can issue policies to commercial banks or insurance companies covering risks arising frombonds issued by them to the benefit of overseas employers for Greek contractors undertakingconstruction work abroad.

Greece



Hong Kong Export Credit InsuranceCorporation (ECIC)2nd Floor, Tower 1South Seas Centre75 Mody RoadTsimshatsui EastKowloon, Hong KongTel: (+852) 2732 9988Fax: (+852) 2722 6277 / 6411E-mail: [email protected]: www.hkecic.com / www.ec-link.com.hk

Commissioner: Ralph LaiGeneral Manager: Cynthia Chin

Ownership structure: 100% sovereignECIC is wholly owned by the government of the Hong Kong Special Administrative Regionof the People's Republic of China, which also guarantees ECIC's contingent liability, withthe statutory maximum liability currently standing at HK$30 billion.

Function:Provides short and medium / long-term export credit insurance facilities for exports of goods andservices.

Institution

ECIC formed in 1966 provides insurance facilities to Hong Kong exporters against non-paymentrisks arising from commercial and political events. Policies cover up to 90% of the losses.

Major facilities:• Short-term cover is available for credit periods up to 180 days.• Medium / long-term cover is up to five years or longer.• ECIC also provides tailor-made facilities to cater for the varying needs of different export

sectors

Fees:• Free quotation is offered.• Premiums are charged on the actual amount of insurable business, based on exporters'

declarations of shipment amounts.• An annual policy fee is charged normally.

Hong KongExport Credit Agencies


Hungarian Export Credit Insurance (MEHIB)Nagymezõ u. 46-48.H-1065 BudapestHungaryTel: (+36) 1 374 9200Fax: (+36) 1 269 1198E-mail: [email protected]: www.mehib.hu

Contact:Roland Nátrán, CEOMr. Gábor Hegyi as Deputy CEO and Head of Business DivisionMr. Tamás Darabos as Deputy CEO and Head of Operatonal DivisionMr. István Herczegh as Deputy CEO and Chief Risk and Financial OfficerGábor Gérnyi, Head of marketing


Function:Administers the official export promotion policy of the Hungarian government by providing short,medium and long term export credit insurance, investment insurance, guarantee insurance.

Institution

The Hungarian Export Credit Insurance Ltd. (MEHIB) provides insurance. The main programmesavailable are short and medium/long term supplier and buyer credit, investment insuranceagainst political risks. Policies cover up to 90%-95% for political and commercial risks.

MEHIB is member of the International Union of Credit and Investment Insurers (Berne Union) andwith the Hungarian membership in the OECD, MEHIB plays active role in the meetings of theParticipants of the OECD Arrangement. MEHIB carries the full faith and credit of the government.The company is involved in insuring project financing schemes, as well.

Insurance

MEHIB provides a range of insurance policies, including:• Policies covering manufacturing and credit risks of suppliers• Policies for buyer’s credit• Policies against loss of Hungarian investments abroad, due to political developments• Whole turnover policies against commercial and political risks towards non–marketable

countries, with optional cover on manufacturing period (as cause of loss: insolvency andprotracted default of a private buyer and political risks are accepted).

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• Special policies for small and medium-sized enterprises having a total annual export turnovernot exceeding a2 million for more than two subsequent accounting years.

Application:• Lender and supplier may apply for a letter of interest, preliminary commitment or final

commitment.

Maximum coverage of export credit insurance:(percentage of the contract value)political risks commercial risks (exceptionally)SME 95 (no ex.)ST 90 (99)M/LT 95 (100)Maximum coverage of investment insurance: 80 %

Interest:• Insurance can be provided for fixed-interest rate or floating-interest rate loans.• No insurance cover for default interest.

• The usual claims waiting period is 90 days as minimum.

Fees:• A processing/application fee is charged.• Premia charged on the capital.


ECA alliances/agreements• MEHIB has entered into reinsurance and coinsurance agreements with several ECAs.• MEHIB is a partner in the Credit Alliance Network.

HungaryExport Credit Agencies


Hungarian Export-Import Bank Plc(Eximbank)Nagymez? utca 46-48.H-1065 BudapestHungaryTel: (+36) 1 37 49 100Fax: (+36) 1 26 94 476, (+36) 1 26 95 735E-mail: [email protected]: www.eximbank.hu

Contact:Mr. Péter Adamecz CEOTel: (+36) 1 37 49 321

Ownership structure: 100% sovereign direct and indirect

Function: Provides export finance and guarantees

Institution

Hungarian Export-Import Bank Plc. (Eximbank) established in 1994, provides guarantees andfinancing for exports of goods and/or services of Hungarian origin.

Medium- and long-term CIRR based financing in Hungary is provided by Eximbank directly orindirectly through refinancing to commercial banks.

Eximbank is bound by OECD consensus.

Based on the Bank’s statues, the government undertakes liability for payment obligations arisingfrom credits raised by Eximbank and from guarantees issued by it on account of the statebudget.

Buyer’s credits and project financingEximbank provides financing for the purchases of goods and/or services supplied under acommercial contract concluded between the Hungarian exporter and a foreign buyer inaccordance with OECD regulations.• Available to foreign buyers of Hungarian export goods/services up to 85% of the commercial

contract• Term is determined according to international practice and OECD Agreement (short-,

medium- or long-term)• Currencies: USD, EUR

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• Interest: Fixed, at CIRR (only in the case of tenor over two years), or floating, based onEURIBOR or USD LIBOR.

• Security: bank guarantee, sovereign, municipal guarantees additional credit insurance(Hungarian Export Credit Insurance Pte Ltd. (MEHIB)) may be needed.

Guarantees

Eximbank issues guarantees backed by the state budget for considerable export deals andguarantees at its own risk. Major guarantee products include loan guarantees as well ascommercial guarantees like tender, advance repayment, performance and warranty guarantees.

Discounting facilitiesWith a discounting facility, Eximbank purchases deferred-payment receivables arising fromexport supply, at a discounted value.• The discounting of receivables originating from supplier’s credit provided to the buyer by the

exporter on the basis of a commercial contract is usually secured with a MEHIB insurancepolicy (type S).

• Forfaiting, the purchase, without recourse, of export-derived receivables guaranteed by abank.

HungaryExport Credit Agencies


Export Credit Guarantee Corporation ofIndia (ECGC)

Chairman and Managing Director:Mr A V MuralidharanExecutive Director: Mr S Prabhakaran

Contact:Mr. V. Viswanathan, General ManagerTel: (+91) 22 66590721Fax: (+91) 22 66590722E-mail: [email protected] /

[email protected]

Ownership structure: 100% by the Government of India

Function:Provides Domestic as well as export credit insurance covers to Exporters and banks

Institution

The Export Credit Guarantee Corporation of India (ECGC) was set up by the Government of Indiain 1957. It provides credit insurance to support Indian exporters.

This organization is offering its service to the exporting community for more than 52 years. It hasevolved different credit insurance products to suit the requirement of Indian exporters andfinancial institutions.

ECGC is a Government of India enterprise under the administrative control of Ministry ofCommerce and is established with the following Vision and Mission set as follows:

VISIONTo excel in providing export credit insurance and trade related services.

MISSIONTo support the Indian export industry by providing cost effective insurance and trade-relatedservices to meet the needs of the Indian export market through the optimal utilization of availableresources.

10th FloorExpress TowersNariman PointMumbai – 400 021India

Tel: (+91) 22 66590500 / 09Fax: (+91) 22 66590517

E-mail: [email protected]: www.ecgc.in

India



ECGC is registered with the Insurance Regulatory and Development Authority (IRDA) under thecategory general insurance – specialised Institution.

ECGC schemes for exporters are as under:

Shipment Comprehensive Risks PolicyIt is one of the ideal short-term policies. This policy covers both commercial and political risksfrom the date of shipment. It is issued to exporters whose anticipated export turnover for the next12 months is more than Indian Rs5 million.

Small Exporters PolicyThis is basically a Standard Policy incorporating certain improvements in terms of cover, in orderto encourage small exporters to obtain and operate the policy. It will be issued to exporterswhose anticipated export turnover for the next 12 months does not exceed Indian Rupees 5 mn

Specific Shipment Policy – Short termIt provides cover for shipments on selective basis. Exporters can take cover under this policy forshipments to a buyer under a contract. This policy can be availed by exporters who do not holdSCR Policy or even by exporters having SCR Policy to cover those shipments permitted to beexcluded from the purview of the SCR Policy. The exporter can opt to cover one or moreshipments only under a particular contract.

Buyer wise PolicyIt caters to the needs of all exporters and those who intend to cover exports to specific buyers.This is an extension of SSP-ST Policy. This is a turnover policy and all shipments to be effected toa specific buyer need to be insured under the Policy.

Turnover PolicyThis policy is meant for larger exporters contributing an annual premium of not less than IndianRs1 million. The policy envisages the projection of export turnover by a policy-holder in advancebased on which the premium rate is determined and it is subject to adjustment at the end of theyear on the actual turnover applying the turnover discount on the premium rates.

Services PolicyServices Policy offers protection to Indian firms against payment risks involved in renderingservices to foreign parties. A vide range of services like technical or professional services, hiringor leasing can be covered under the policy.

Export Factoring ServicesIt protects the exporters and the banks to the extent of 100% without recourse. The factored billscan be set aside of the limits sanctioned thereby increasing the export turnover.

Consignment Exports PoliciesThe exporters can cover exports on consignment basis to the stockholding agents or to their ownbranch offices ( Global Entity) for onward sale to ultimate buyers. The exporters are open to riskfor the non payment by the stockholding agent and/or by the ultimate buyers. The risks for thesetransactions can be covered exclusively under the consignment policies.

IndiaExport Credit Agencies


Exposure PoliciesIn order to simplify the procedures where the exporters are required to make frequent exportdeclarations of their shipments to a single or multiple buyers, these policies are introduced. Theexporter can select one buyer or all buyers for cover under the Buyer Exposure Policy or Multi-buyer Exposure Policy respectively.

Software projects policyThe Services Policies of the corporation which have been in existence for some time wereoffered to provide protection of exporters of services including software and related services.However it was found that the general services policy does not meet with the exact requirementsof software exporters. It was therefore decided to introduce a new credit insurance cover to meetthe needs of the software exporters, namely, software projects policy, where the payments will bereceived in foreign exchange. The general services policies will continue to be offered for theexport of services other than software and related services. The software exports policy alsocovers certain special risks like loses due to exchange fluctuation( in case of projects beyond oneyear tenor), sudden imposition of restrictions on VISA for personnel of exporter etc.,

IT-enabled software policyECGC has introduced policy for IT enabled services for IT Industry and other areas. IT-enabledServices Policy would be given in respect of contracts for rendering service during a definedperiod with billing on the basis of service rendered during a period say, a week, a month or aquarter.

Policies offered by ECGC to all Indian exporters cover both commercial and political risks fromthe date of shipment till the payments are made in respect of goods exported on short-termcredit as well as on long -term credit.

Risks covered:(a) Commercial Risks

(i) Insolvency of the buyer(ii) Failure of the buyer to make the payment due within a specified period, normally 4

months from the due date.(iii) Buyer's failure to accept the goods, subject to certain conditions

(b) Political risks(i) Imposition of restriction by the government of the buyer's country or any government

action which may block or delay the transfer of payment by the buyer(ii) War, civil war, revolution or civil disturbances in the buyer's country(iii) New import restrictions or cancellation of a valid import license.(iv) Interruption or diversion of voyage outside India resulting in payment of additional freight

or insurance charges which cannot be recovered from the buyer. Any other cause of lossoccurring outside India, not normally insured by general insurers, and beyond the controlof both the exporter and the buyer.

ECGC is also providing commercial cover to bankers for their advances to the exporters at pre-shipment and post-shipment stage to enable them to extend credit facilities, both fund based aswell as non-fund based, to the needy exporters. The risks covered are the lending risks of thecommercial banks at the pre shipment as well as post shipment stages.

India



Overseas Investment Insurance provides protection to Indian investments abroad, either in theform of equity capital or untied loans due to political risks, mainly expropriation risks. Besides,ECGC also has various schemes for exporters of medium and long terms credits. Covers areavailable for lines of credit and buyers' credit extended by institutions like EXIM Bank to overseasinstitutions/buyers. Apart from Specific Contract or Shipments Policy to cover supply contracts,Services Policy to cover the respective exports, a Construction Works Policy is also available toinsure payments due under a civil construction or a turnkey project.

Export Credit insurance calls for extensive research and in-depth analysis. In this context, ECGCis certainly not found wanting with its buyer underwriting division involved in extensive research.The division collects and monitors updated reports on buyers, review buyer limits. Similarly, theCountry underwriting division prepares, reviews and updates country reports, formulates andreviews country underwriting policies, dealing with matters connected with international bodieslike Berne Union, IIF, IMF and coordinating with other credit insurance agencies.

In the world of mergers and strategic alliances, ECGC too has been forging the right alliances toexpand its operations and to provide the best offerings to Indian exporters. It has tied up with theFrench credit insurance company, COFACE, to attract more multinational companies to its listwith the offer of Global Policies. Under the new scheme, ECGC would target MNCs across theworld by covering credit insurance to them for their export activities abroad as well as in India.

Apart from the off the shelf products the Corporation has, it also devises customized covers tomeet the specific credit insurance requirements of its exporters. These customized solutionshave become very popular and an increased number of exporters has benefited from suchcovers

Leading credit insurers are diversifying into related services for which they could charge fixedfees and bolster income without increasing the risk exposure. ECGC also provides many otherspecialized services to exporters by guiding them in export related activities, providinginformation on different countries with its own credit ratings, assisting exporters in recoveringbad debts and offering information on credit-worthiness of overseas buyers.

ECGC has also started providing domestic credit insurance covers to exporters who will be sellinggoods and rendering services to entities in India. Similarly, banks lending to exporters for theirdomestic business in the form of working capital at the pre and post supply stages will also getinsurance covers against their lending risks of their exporters.

ECGC has left no stone unturned to provide the best possible products and services to enhancethe competitiveness of Indian exporters. The corporation has signed corporate agency agreementwith banks for marketing the insurance products of ECGC meant for exporters, the right way toexpand one's operations in these times when bancassurance has become the order of the day.Bancassurance is gaining importance with the liberalization of the banking and insuranceindustry. All Insurance companies are entering into agreements with the banks to explore thepossibilities of increasing business and the banks for increasing their fee based income. As ondate ECGC has signed agreements with 26 commercial banks for marketing its export insurancepolicies to the exporters. Such arrangements help the insurance companies to use the data baseof the banks and also to reach the customers in remote places through the banks net work.



Apart from the bancassurance tie ups, the corporation has also been availing the services ofbroking companies as alternate channels of marketing the credit insurance products.

New concepts such as 'add on' facilities are provided to encourage more and more customers touse the products by many companies. This is to make ECGC as a one stop financial super marketfor all the credit and insurance needs of exporters. ECGC has introduced Marine Insurance Coverfor all export consignments of the policyholders insured with the Corporation as a free 'Add -on'facility. This 'add on' facility is available with out any extra cost for the exporters. The exporterswould now be able to be more competitive in the export market.

Since ECGC is the national credit insurer fully owned by the government of India, the governmenthas felt the need to make ECGC as a facilitator for credit insurance covers to exporters ofmedium and long term exports where insurance could not be provided by ECGC on its owncommercial terms but nevertheless such exports need to be supported from the country’s pointof view. Thus, a separate fund with a corpus of Rs.2000 crores called the National ExportInsurance Account has been set up by the government. The insurance fund will be maintainedand operated by a public trust, set up by the Department of Commerce, Govt of India. Themaximum aggregate exposure that will be undertaken will be held at Rs.20000 crores after thetrust receives the full funding of Rs.2000 crores. The fund will support in respect of exportsinvolving large value projects with credit terms which are unconventional and those beyond theunderwriting capacity of ECGC. The fund will also enable exports to countries facing persistenteconomic and financial difficulties.

Due to the slow down affecting all economies in the world, Indian exports have also been greatlyimpacted. In order to enable exporters to export without fear of credit losses and also to ventureinto new markets, the Government has announced a stimulus package for increased creditinsurance covers through ECGC. A sum of Indian Rs3,500 million has been ear marked from outof the funds available in the NEIA corpus to provide an additional cover of 5% to all MSMEexporters and non MSME exporters of select labour intensive sectors, on government account.Similarly, all bank advances insured under covers issued to banks will get an additionalprotection of 10% in respect of credit extended to MSME sector.

To become an active player in the growing contribution from SMEs, ECGC has also tied up withNational Small Industries Corporation (NSIC) to offer its products to a number of SMEs spread allover India. NSIC would play an important role in expanding the utility of export credit riskinsurance among the SMEs.

ISO certification is a recognition of any organisation's endeavor to strive for continualimprovement in its systems and procedures in order to ensure its commitment to attainexcellence in delivery of its services to its customers. All the branch offices of ECGC and thehead office are now ISO compliant.

India



To provide better and effective services to all the export centers, it has become necessary tohave branch outlets at various export centres across India. Today, ECGC has five regional offices– New Delhi, Kolkata, Mumbai, Chennai and Bangalore and 51 branch offices all over India toservice exporters and bankers. The head office and all 51 branches are connected by WAN andthe Services are web-based. ECGC has 10 specialized branches to service exclusively theexporter clients out of which 2 branches service large value customers and the other 8 branchesservice small and medium exporters (SME). There are six specialized branches to exclusivelyservice the banks. Besides, one exclusive branch in Mumbai caters to needs of medium and longterm exporters.

ICRA Limited, an associate of Moody's Investors Service, has assigned an iAAA rating to ECGCfor the claims paying ability. This rating, which is the highest by ICRA, indicates the highestclaims paying ability and the best prospects of meeting policyholders' obligation.



Export Import Bank of India (I-Eximbank)(I-Eximbank)Centre One, Floor 21World Trade CentreCuffe ParadeMumbai 400 005IndiaTel: (+91) 22 2218 5272Fax: (+91) 22 2218 2572E-mail: [email protected]: www.eximbankindia.com


Function:Provides short-, medium- and long-term finance, guarantees, and value-added information,advisory and support services.

Institution

The Export Import Bank of India (I-Eximbank) was set up in 1982 for the purpose of financing,facilitating and promoting India’s foreign trade. I-Eximbank is a multi-service export credit agencythat offers financial facilities and consultancy services tailored to meet the needs of externallyoriented Indian companies, overseas entities and commercial banks.

I-Eximbank is wholly owned by the Government of India. It has dedicated groups for ProjectFinance/Trade Finance, Lines of Credit, Corporate Banking, Corporate Finance and CorporateServices.

Financing

I-Exim Bank aims to develop commercially viable relationships with externally orientedcompanies by supporting their internationalisation efforts, through a comprehensive range ofproducts and services. These include:• Pre- and post-shipment supplier’s credit• Lines of credit and buyer’s credit to foreign governments /agencies• Overseas investment finance, for acquiring/setting up of joint ventures, subsidiaries abroad• Equity participation in overseas ventures of Indian companies• Finance for export oriented units, export product development, software training institutes,

minor ports and technology parks• Export marketing finance

India



• Rediscounting and refinance facilities to commercial banks• Working capital term finance• Guarantee facilities for execution of export contracts and import transactions, including

deferred payment guarantees.• Support and assistance for small and medium enterprises (SMEs) by way of term loans for

setting up of new projects, modernisation, expansion, equipment finance and export credit.• Financing of services including sectors like education, healthcare, hospitality, shipping and

entertainment.• Facilitation, promotion and financing of agri-business through a dedicated agri business

group.• Film Financing.

Technology companies i.e. information technology, pharmaceutical, auto-component and high-tech engineering companies can avail finance on terms customized to match their specificneeds.

ApplicationProspective borrowers, Indian exporters, overseas buyers and agencies may approach I-Eximbank for expression of interest, preliminary commitment or final commitment.

Loans• Short-, medium- and long-term loans• Available in Indian Rupees, US Dollars and most convertible currencies• Loans in foreign currency are offered at both CIRR linked fixed rate and Libor linked floating

interest rates.

OfficesHead office at Mumbai supported by a network of 17 offices in India and overseas

Branch: London

Domestic Offices: Ahmedabad, Bangalore, Chandigarh, Chennai, Hyderabad, Kolkata, Guwahati,Mumbai, New Delhi, Pune.

Overseas Offices: Addis Ababa, Dakar, Dubai, Johannesburg, Singapore, Washington DC

Funding• Commercial banks, domestic & international funds, and capital market form the source of

funding.• Credit repayment terms are structured to match requirements. For short-term loans,

repayment is less than one year; for medium-term loans repayment is three to five years,long-term loans repayment term is more than five years.

Fees• Fees are charged as per market practice.




Project & trade finance related advisory servicesI-Exim Bank also offers a diverse range of information and advisory support services, whichenable exporters and importers to evaluate international risks and exploit global businessopportunities. These services include:• Information and guidance for project exporters seeking contracts in overseas projects funded

by multilateral funding agencies like the World Bank, Asian Development Bank etc.• Customised research on behalf of interested companies in areas such as establishing

marketing potential, defining marketing arrangements and specifying distribution channels.• Provision of export marketing services to Indian companies to enable them to establish their

products overseas and enter new markets.• Assistance in export marketing efforts of Indian companies including developing export

market entry plans, obtaining quality certifications and display of products in our overseasoffices.

• Internationalisation support for Indian firms in their overseas ventures in terms of financialsupport and help in identifying technology suppliers and partners for domestic and overseasjoint ventures.

• Financial counseling on accessing foreign currency finance from multilateral institutions andimport lines of credit, trade finance alternatives, and on credit worthiness of business entitiesand banks.

• Research on issues related to international trade and economics, includingsector/product/country studies and publication of the same in the form of occasional papers/working papers and books.

• Building export capability through training programmes, workshops and seminars forexporters.

In addition, I-Exim Bank also acts as an international consultant to countries seeking to set upinstitutional infrastructure for international trade.

India



PT. Asuransi Ekspor Indonesia (Persero)(Asuransi ASEI)Office: Menara Kadin Indonesia Building, 22nd FloorJl. H R. Rasuna Said X-5 Kav. 2-3Jakarta 12950 – IndonesiaTel: +62 21 5790 3535Fax: +62 21 5790 4031/32Email: [email protected] or [email protected]: www.asei.co.id

ContactsMr. Riduan Simanjuntak – Corporate SecretaryEmail: [email protected]

Mr. Didiet S. Pamungkas – Head of Export Credit Insurance DivisionEmail: [email protected]

Ms. Audi Artha Rita – Export Credit Insurance Marketing ManagerEmail: [email protected]

Mr. Teddy A. Perkasa – Secretariat and Public Relations ManagerEmail: [email protected]

Ownership: 100% sovereign.

Institution

PT Asuransi Ekspor Indonesia (Persero) or commonly known as Asuransi ASEI was established on30 November 1985 as Government’s agency to boost national non-oil and gas export. AsuransiASEI is fully owned by the Government of the Republic of Indonesia under the supervision ofState Minister for State-owned Enterprises and Ministry of Finance. The main duties are toprovide Export Credit Insurance and Export Credit Guarantee, yet in order to ease the customer,Asuransi ASEI also provides (export-related) General Insurance and other financial guarantees(such as Guarantee in Opening Import/Domestic Letter of Credit; Pre- and Post-shipmentFinancing Insurance and Surety Bonds).

VisionTo become a leading Export Credit Agency in Indonesia through strategic alliances and globalnetworks.

MissionExecuting and supporting Government’s programme in national economic development in

IndonesiaExport Credit Agencies


general and to boost the non-oil and gas export in particular by providing Export CreditInsurance, Export Credit Guarantee and other forms of insurance and guarantee.

Main products

1. Export Credit InsuranceAn insurance to protect Indonesian Exporters against the risks of non-payment from Importers(foreign buyers) or L/C Issuing Banks that occurred either by political or commercial risks.Commercial Risks• Importer’s bankruptcy• Importer’s payment default• Importer’s refusal of goodsPolitical Risks• Foreign exchange restrictions• Import Quota Limit• Import Business License Revocation• War or other hostile situations

2. Credit Insurance & Credit Guarantee

Credit InsuranceIt is a protection provided by Asuransi ASEI (Insurer) to a Bank (Insured) in case the Debtor fails torepay cash loans from a bank, such as Working Capital or Trade Financing loans.

Credit GuaranteeIt is a protection provided by Asuransi ASEI to a Bank in case the Debtor fails to perform or to payits obligations to other party in the non-cash loan facilities such as issuing of Import L/C, BankGuarantee, or issuing Domestic L/C.

3. General Insurance• Fire/Property Insurance• Marine Cargo Insurance• Marine Hull Insurance• Engineering Insurance• Miscellaneous Insurance, such as:• Personal Accident• Money Insurance• Third Party Liability Insurance

4. Surety Bonds• Bid Bond• Performance Bond• Advance Payment Bond• Maintenance Bond• Payment Bond• Custom Bond

Indo

nesia



Export Development Bank of Iran (EDBI)No. 26, 15th St., Bucharest Ave, Argentina Sq.,Tehran 1513835711,IranTel: (+98) 21 88703463Fax: (+98) 21 88700755Telex: 226895 EDBI IRSWIFT: EDBIIRTHE-mail: [email protected]: http://www.edbi.ir

Institution

Export Development Bank of Iran (EDBI) was established in 1991 with the objective of increasingIran’s export and developing trade with other countries.Vision• As the unique state-owned EXIM Bank of Iran, to promote the Country’s export & develop

economic and business exchanges with other countries

Mission• To offer products and services that meet needs of all customers, (particularly exporters) in a

sound, safe and profitable environment• To treat customers fairly and provide them with full access to our financial services based on

the three principals of Professionalism, Responsiveness and Respect

Objectives• To attain growth and profitability in all financial services the bank renders• To utilize most advance e-banking technologies to facilitate the bank’s services• To open up future marketsBranch Network• 32 Branches all across the country• A Representative Office in Almaty, Kazakhstan• A Universal Bank in Venezuela

Main Activities• Corporate Banking• Retail Banking• Commercial Banking• Islamic Banking• Mobile Banking

Services for Clients1. Current, Savings & Deposit Accounts2. Pre-shipment & Post-shipment Loans3. Credit, Debit & Internet Cards4. POS & ATMs5. Trade Finance: LC, LG, Advice, Confirmation, Discount, Processing of Documentary Collections

IranExport Credit Agencies


6. Stock Exchange Brokerage7. Commercial Payments, Money Transfers

Services for Correspondent Banks1. Correspondent Accounts and International Settlement Services2. Bank to Bank Transfers and Commercial Payments3. Trade Finance Operations: LC and LG, Issuance of Reimbursement Undertakings, Processing

Documentary Collections4. Cheques Collections5. Extending Credit Lines

Export Financing• Pre-Shipment Financing: to cover manufacturing costs• Post-Shipment Financing: to enable exporters to sell Iranian goods and services on deferred

payment basis under:– Supplier’s Credit: to discount the bills of exchange or deferred-payment LCs– Buyer’s Credit: to extend facility to foreign buyers of Iranian goods and services, to be

payable out of The Bank’s own resources, Oil Reserve Fund (ORF) & Islamic DevelopmentBank’s (IDB) resources granted to EDBI under Export Financing Scheme (EFS)

Import Financing• To provide facility for manufacturing goods and services to be exported abroad• To facilitate importation of raw materials, spare parts & production line machineries• To be granted out of the Bank’s own resources, credit lines received from major banks,

including Islamic Development Bank (IDB)

Information Technology• IT Facilities

– Back office systems with web-enabled electronic platform for customer access– Client-based, multi-currency, multi-institution, multi-branch banking system– On-line, real-time system for retail-banking– Trade finance system with LC, LG, Collections, Clean payment, Bill finance, facilitated

with STP (Straight-Through-Processing)• IT Security

– Secure server certificate with authentication, SSL encryption for proving the identity andownership of a domain name for confidential communication

– OTP (One-Time-Password) authentication for access to e-banking services– Firewall to manage access between internet and intranet networks– Security system hardening– Centralize antivirus management– Security awareness for employees and customers

EDBI, a Trusted Partner• State-owned financial institution• Large-scale use of advanced Information Technology• Maintaining robust correspondent banking relations• Wide variety of competitive banking services• Clients include 77% of prime award winning Iranian exporters• Backed by expertise of highly professional members of staff

Iran



Export Guarantee Fund of Iran (EGFI)No. 5, 16th St., Bucharest Ave.,Argentina Sq.,TehranIranTel: +98 21 88739267 (Risk & Int’l Cooperation)/ 88733370 (General)Fax: +98 21 88546989 (Risk & Int’l Cooperation)/ 88733376 (General)Email: [email protected]: www.egfi.ir

Management:Chairman and CEO: Dr. Kazem Doost HosseiniMOB: Mr. Rahim PiriClaims Director: Ms. Pari Mirzaei RezaeiST Insurance Director: Mrs. Haideh YounesiMLT Insurance Policies Director: Mr. Bahman MennatiGuarantees Director: Mr. Mohammad Hossein Moghiseh

International Contact Person:Risk & Int’l Cooperation Director: Mr. Arash Shahraini

Function:Iran’s official ECA

Institution

Established in 1973, EGFI is the only Iranian state-owned export credit insurance company,affiliated to I.R. of Iran’s Ministry of Industry, Mine, and Trade, whose responsibility is to helpexport promotion through providing Iranian exporters with:• Overseas insurance policies to cover the major political & commercial risks involved in their

export operations as well as their outward investment;• Credit guarantees to help them meet their financial requirements.

Vision:Turning to the best, most professional and effective ECA in South Western Asian region.

Major Facilities:1. Policies:

a) Whole Turnover Policyb) Techno-Engineering Services Policy

IranExport Credit Agencies


c) Specific Policyd) Investment Policyf) Export Contract Frustration Policyg) Discounting of Export Bills Insurance Policyh) Sight L/Cs Insurance Policy

2. Guarantees:a) Manufacturers Credit Guaranteeb) Local Currency Credit Guaranteec) Foreign Exchange Credit Guaranteed) Buyers Credit Guaranteee) Bond Guarantees

3. Other services:• Credit assessment of countries, foreign banks and buyers;• Free consultation to exporters

Risks Covered:

Commercial Risksa) Buyer’s failure to accept the exported goods & services;b) Non-payment of the price of goods & services on due date;c) Buyer’s protracted default due to bankruptcy, insolvency or lien;

Political Risksa) Outbreak of war or state of war;b) Straining or severance of diplomatic relations with the buyer’s country as a result of which

the exporter is unable to collect his receivables on the due date;c) Imposition of economic policies in the buyer’s country which may block the exporter’s

receivables;d) Imposition of restrictions on imports or foreign exchange transfer in the buyer’s country;e) Confiscation & Nationalization of the buyer’s properties as a result of which the exporter is

unable to collects its dues;

Performance Highlights:• Total cover extended to Iranian exporters/outward investors for financial year 2011-2012

was $1,425.5 million.

International Relations Highlights:• EGFI is a member of Prague Club (preliminary stage of Berne Union), and its cover has

reached the criteria level for membership in the Berne Union.• EGFI is also a member of AMAN UNION (Islamic & Arab ECA’s Union).• EGFI has signed MoUs and agreements with more than 45 international, multilateral, and

national ECAs and other institutions.

Iran



ASHR’A – The Israel Export Insurance Corp. Ltd (formerly IFTRIC)

Contacts for underwriting & insurance:Adi Gross – Chief Underwriting OfficerTel: (+972) 3 563 1772Fax: (+972) 3 563 1708E-mail: [email protected]

Maria Kofman – Head of Underwriting andInsurance DivisionTel: (+972) 3 563 1783Fax: (+972) 3 563 1708E-mail: [email protected]


Function:Provides medium and long-term export credit and investment insurance

Institution

ASHR’A – The Israel Export Insurance Corp. (formerly IFTRIC) supports Israeli exporters byinsuring medium and long-term export credit transactions and overseas investments. The mainprogrammes available are insurance of medium- and long-term supplier’s credit, buyer’s credit,inter-bank credit lines, letters of credit and promissory notes or invoices discounting insurance,and investment insurance. Investment insurance is available for equity and loans. Policies coverup to 95% for political and up to 90% for commercial risks.

ASHR’A carries the full faith and credit of the government. Israel recently became a member ofthe OECD and ASHR’A adheres to OECD consensus rules.

65 Menachem Begin RoadPO Box 2020861201 Tel AvivIsraelTel: (+972) 3 563 1700Fax: (+972) 3 563 1708E-mail: [email protected] site: www.ashra.gov.il

Chief Executive Officer:Zvi Chalamish

Contact for marketing & businessdevelopment:David Klien – VP Marketing and BusinessDevelopmentTel: (+972) 3 563 1715Fax: (+972) 3 561 1937E-mail: [email protected]

IsraelExport Credit Agencies


Direct Insurance to Banks

ASHR’A provides direct insurance policies to banks against non-payment of loans granted tobuyers under buyers’ credit or to banks under inter-bank credit lines or letters of credit. Forfeitinginsurance can be also provided to a bank to cover a risk of non-payment of promissory notesbought from a supplier. Invoices discounting policy is now offered as well.

Application:• Supplier may apply for a letter of interest, preliminary commitment or final commitment.• On average it takes up to four weeks to process an application.• There is recourse to the sponsor/contractor/supplier in the event of non-performance of the

contract (commercial dispute).

Cover:• Insurance is available for political and commercial risks.• Up to 85% of the eligible contract value can be covered, 15% down payment is required.• Up to 95% political and up to 90% commercial coverage can be provided.• Up to 100% of the interest during construction can be covered.• Up to 70% of non-Israeli content can be covered.• Medium- and long-term policies are available for credit periods over 12 months.• Cover can be provided in all leading hard currencies.• Investment policy can be offered for equity and loans. The investment must be recognized by

the host country as foreign investment and the Israeli share must be at least 20% of theinvestment.

• Inter-bank credit lines can be supported covering Israeli export.• Neither swap-breakage costs on interest rates nor exchange rates are covered.• Policies can be available for multiple sales financed under a single line of credit provided by

a bank to foreign banks or buyers.

Maximum coverage of export value (percentage of 85% of the contract value)Buyers Political CommercialPrivate 95 90Public 95 95Sovereign 95 95

Interest:• Policies can be provided for fixed-interest rate and floating-interest rate loans.• Up to 100% of the interest can be covered.• Waiting period interest is covered.• The usual waiting period from default to payout is six months for the first payment only.

There is no additional waiting period for the consequent payments.

Funding:• Commercial banks, both Israeli and foreign can supply funding.

Israel



Fees:• No processing/application fee is charged.• Premium is charged on the financed amount (principle amount). Premium can be paid

upfront or during drawdown/disbursement period.• Premium financing could be provided.• A commitment fee is charged and is fully refundable when a policy is issued.

Insurance to Exporters and Investors

ASHR’A provides export medium/long term credit coverage of risks of non-payment by buyersand banks abroad due to political and commercial reasons and insurance of investments abroad.

Application:• Supplier may apply for a letter of interest, preliminary commitment or final commitment.• On average it takes up to four weeks to process an application.

Cover:• Insurance is available for political and commercial risks.• Up to 85% of the eligible contract value can be covered, 15% down payment is required.• Up to 95% political and up to 90% commercial coverage can be provided.• Up to 70% of third country goods may be covered.• Up to 100% of the interest during construction can be covered.• Medium- and long-term insurance is available for credit periods over 12 months.• Insurance can be provided in all leading hard currencies.• Investment insurance may be offered for equity and loans. The investment must be

recognized by the host country as foreign investment and the Israeli share must be at least20% of the investment.

• Unfair calling of bonds insurance can be offered for different kinds of bonds (advancepayment bonds, performance bonds, bid bonds, etc.)

Maximum insurance of export value(percentage of 85% of the contract value)Buyers Political CommercialPrivate 95 90Public 95 95Sovereign 95 95

Interest:• Insurance can be provided for fixed-interest rate or floating-interest rate loans.• Up to 100% of the interest can be insured.• The usual waiting period from default to payout is six months for the first payment only.

There is no additional waiting period for the consequent payments.

Funding:• Commercial banks can supply funding.

IsraelExport Credit Agencies


Fees:• No processing/application fee is charged.• Premium is charged upfront on the insured amount. In case of investment insurance

premium are paid as a percentage of the covered investment per annum.• A commitment fee is charged and is fully refundable when insurance is issued.


ECA alliances/agreements• ASHR’A has reinsurance agreements with leading reinsurance companies.• ASHR’A has cooperation agreements with US Ex-Im Bank, Miga (US), Zurich (US), Atradius

(Netherlands), Hermes (Germany), SACE (Italy), K-sure (Korea), Nexi (Japan), Egap (CzechRepublic), OeKB (Austria), Kuke (Poland) and ECGC (India).

Israel



SACEPiazza Poli, 37/4200187 Rome, ItalyTel. +39 06 67 361Fax +39 67 36 707Website: www.sace.it

Contact:Marco BattagliaHead of Media and CommunicationTel: +39 06 6736906Fax: +39 06 6783851E-mail: [email protected]

Ownership structure: 100% owned by the Italian Ministry of Economy and Finance

FunctionSACE is an insurance and financial group that operates in the field of export credit, creditinsurance, investment protection, financial guarantees, sureties and factoring. The group assistits 25,000 clients in more than 180 countries worldwide, ensuring stable cash flows andtransforming companies’ risks of insolvency into development opportunities.

SACE is present in Italy with locations capable of independently managing the entire demand,assessment and issue process for insurance coverage for amounts up to a20 million.

SACE has a presence in overseas markets with high potential: Latin America, Asia, the Near East,Sub-Saharan Africa, Central and Eastern Europe and the Commonwealth of Independent States.In 183 countries throughout the world, anywhere a business decides to export or invest, it cancount on managers who are experts in the local business environment and on analystsspecialized in assessing the risk profile of markets and counterparties.

Rating: A- (Fitch).

SACE products

Preliminary assessmentDuring the contract negotiation process, customers can request a Preliminary CreditAssessment. This service is available online through the ExportPlus portal. It provides businessesplanning for exports or foreign investments and an assessment of a foreign buyer’s reliability ortransaction feasibility, in addition to an estimate of the insurance coverage costs.

ItalyExport Credit Agencies


Protecting exportsSACE protects Italian businesses that sell goods or services overseas against the risk of non-payment.

The Supplier Credit policy insures single transactions with payment deferred for more than 24months for OECD countries and without any time limit for other countries. The company cantransfer the benefits of the policy to a bank or other financial intermediary to discount theunderlying credit without recourse. The Civil Works policy covers the specific needs ofconstruction and plant engineering firms involved in civil works or supplying projects abroadwhere payments are due at intervals or upon completion of milestones.

The Supplier Credit and Civil Works policies cover exporters against the risk of non-payment as aresult of undue cancellation of the contract or calling of guarantees, destruction, damage,requisition or confiscation of temporarily exported goods. For transactions of up to a5 million,SACE offers two basic versions of the Supplier Credit policy Plus One and Basic. These areavailable on the ExportPlus portal and have the advantage of simplified procedures and fasterfeedback.

SACE’s Documentary Credit Confirmation policy insures Italian and foreign banks against the riskof non-reimbursement of documentary credit from credit arising out of confirmations madethrough letters of credit.

For transactions with a repayment period of up to 5 years and a maximum amount of a5 million,banks can obtain cover for documentary credits in real time through Credoc Online, thusreducing the time and cost involved.

Funding exportsThe competitiveness of Italian exports is increasingly linked to the credit terms available toforeign buyers rather than simply on the quality and price of the actual products or services.

Through its Buyer Credit policy, SACE guarantees loans granted to foreign borrowers to purchasegoods or services supplied by Italian companies or their subsidiaries, thus strengthening thecapabilities of the banking system. SACE covers the risk of the foreign borrower failing to repaythe loan granted by the bank within the terms agreed upon.

The competitiveness of financing supporting Italian exports is reinforced by collaborationbetween SACE, Cassa Depositi e Prestiti (CDP) and the Italian Banking Association (ABI), underthe Export Banca system. The scheme allows Italian exporters to provide foreign customers withfunding guaranteed by SACE and provided by CDP through the banking system or directly byCDP in case of transactions involving sums greater than a25 million.

Buyer Credit is often used to guarantee project & structured finance and asset based investmentprojects, which often involve other export credit agencies, commercial banks and internationaland local financial institutions.

In project finance transactions, SACE guarantees limited and non-recourse financing for thepromoters of the project, whose commitment is generally limited to their own financing linked tothe project and other possible forms of support (such as completion guarantees, stand-by equity,subordinated debt, technical and operational assistance, support in marketing activities).

Italy



In asset based transactions, used especially in the shipping and aeronautical industries, theassets which are funded constitute the guarantee of the debtor. In the case of non-payment, thecredit is recovered by selling the asset.

Financing SMEs in international developmentSACE has signed agreements with major Italian banking groups to facilitate access to credit forsmall and medium enterprises, the sector hardest hit by the liquidity crisis of recent years, withthe aim of strengthening activities on foreign markets.

The internationalisation guarantee for SMEs covers loans granted by approved banks to financeprojects directly and indirectly related to foreign development, for companies with yearly revenueof up to 250 million euro, at least 10% of which generated by exports. The guarantee is issuedfor up to 70% of the loan, and is granted to businesses that invest abroad, either directly (jointventures, mergers and acquisitions, partnerships with foreign countries) or indirectly, or areinvolved in research and development, want to renew and upgrade factories and machinery,protect brands and patents, attend international trade fairs or invest in promotional initiatives.

SACE works with financing intermediaries on loans supporting projects relating to theinternationalization process for large Italian companies or their foreign subsidiaries.

SACE’s Investment guarantee covers loans granted to finance investments destined to strengthenthe competitive position of the business in foreign markets: joint ventures, mergers andacquisitions, increases of capital in foreign enterprises, or setting up of production facilities, andinvestments in research and development.

The Working Capital guarantee, on the other hand, covers non-payment of loans granted for thepreparation of supplies to be exported or used in the execution of civil works abroad.

SACE issues the Working Capital and Investment guarantee at market conditions for up to 80%of the loan. The portion of the loan that is guaranteed does not affect the company’s credit lineswith the banks.

SACE supports investments for Italian businesses in partnership with the European InvestmentBank, the European Union’s lending institution for medium-long term loans and importantprojects for pursuing community objectives.

SACE’s support for Italian enterprises involved in internationalization is strengthened bycollaboration with the Cassa Depositi e Prestiti and the Italian Banking Association.



Protecting foreign investmentsSACE protects investments made by Italian enterprises in foreign markets with political problemsbut high growth potential by granting easier access to financing and also by protecting directinvestments.

The Investments policy protects Italian companies and banks investing abroad, either directly andthrough their affiliates or subsidiaries, against political risk so they can concentrate entirely onthe business risk and on developing their business. The policy protects overseas investments(equity), when a new company is set up or in the case of acquisitions, also if done through a jointventure, and shareholder loans. For banks this cover has zero impact on their capital absorptionand leaves more room within their country limits. The Investments policy allows companies orbanks to prevent, limit or offset capital losses abroad as well as losses or non-payment ofamounts due to the policyholder in connection with the investment (e.g. dividends, profits,repayment of shareholder loans) due to:• war and civil unrest• currency restrictions• direct and indirect expropriation• cancellation of contracts with state-owned local counterparties.

For equity investments of less than a5 million, Online PRI can be acquired through the ExportPlusportal.

Finance for infrastructures and renewable energySACE guarantees the financing of nationwide projects in sectors strategic to the Italian economythrough its Investments guarantee.

The financing, guaranteed by SACE under market conditions for up to 80% of the sum, isdedicated, among other things, to investments in:• transport infrastructures, such as motorways, ports, airports and underground systems• infrastructures for the distribution or provision of energy, such as regasification plants, gas

pipelines, oil pipelines and power lines• production plants for energy from renewable sources, specifically wind power and

photovoltaic energy• projects in the telecommunications sector aimed at reducing the digital divide in Italy.

With the aim of providing easier access to credit for operators involved in the construction oflarge infrastructure projects, SACE guarantees financing by the European Investment Bank andthe Cassa Depositi e Prestiti in addition to other commercial banks. The financing provided todate by the EIB through SACE guarantees in this area of activity, amounting to a477 million,includes projects for Italian motorway network development, urban waste treatment and thediversification of gas supply sources.

Supporting companies in bids and contractsThe SACE Group supports companies bidding for contracts or acquiring contracts and workorders in Italy and abroad. Guarantees covering the contractual or legal obligations of Italiancontractors are issued directly by SACE or through accredited financial intermediaries.

It is increasingly common for companies taking part in tenders or undertaking civil works andsupplying services to have to provide sureties to guarantee compliance with the terms of thecontract.

Italy



The SACE Group offers an extensive range of guarantees covering contractual obligations directlyin Italy and abroad. These include:• bid bonds, to guarantee bids for contracts and signing of contract documents if awarded• performance bonds, to guarantee the performance of all contractual obligations undertaken

by the contractor upon signing the contract• advance payment bonds, to guarantee the refund of advance payments made in the event of

default by the contractor• maintenance bonds, to guarantee the proper functioning of the product/system supplied• money retention bonds, to guarantee the refund of retention money paid in advance on the

basis of the progress of works if the contractor fails to fulfill contract obligations.

SACE also issues counter-security for financial intermediaries that give such guarantees. Fortransactions with a repayment period of up to five years and a maximum amount of a1 million,banks can use the Online Sureties policy to cover up to 70% of the total amount of theguarantee. This policy uses a simplified application procedure and ensures faster feedback.

The surety bonds granted to Italian exporters are covered by reinsurance agreements andcounter-securities underwritten by SACE with leading foreign operators.

Companies with operations on American markets also have the benefit of partnerships inparticular with Chartis, Liberty Mutual, Travelers and Zurich. In North Africa and the Middle East,SACE’s operations are extended by collaboration with the Europe Arab Bank, which has branchesin 15 countries in the region.

In addition to offering insurance surety bonds for contracts for construction, services andsupplies, the SACE BT subsidiary also issues the following for the Italian market:• guarantees to cover urbanisation charges, to guarantee fulfillment of obligations of

performance (direct execution of urbanization works) or obligations to give (deferred paymentof building licence fees, primary/secondary urbanisation costs and construction costs, in thecase of payment by instalments)

• guarantees to protect the buyers of new buildings, to ensure repayment of amounts paid bythe buyer in advance at various stages of the work.

The Group also offers guarantees of performance of legal obligations, which cover the fulfillmentof obligations undertaken with the public authorities. These include:• tax refund payment bonds• guarantees for customs duties• green certificate bonds, for advance payment of gains from the future sale of green

certificates.

Construction risk insuranceThrough its SACE BT product company, the Group insures risks associated with the constructionof factories and civil works. This enables construction companies to take part in tenders incompliance with current legislation, whether in Italy or abroad.

The CAR (all contractors’ risks) policy insures the company against material and direct damageto the works during construction or to pre-existing structures, including damage causedinvoluntarily to third parties (death or injury). The policy also covers construction risks for workscompleted or in progress in approved foreign countries, under Italian law or, pursuant to frontingagreements, in accordance with local law.



The Decennial Liability policy covers all direct material loss due to collapse, falling or seriousstructural defects in the building for ten years after the completion of the building work, includingdamage to third parties due to structural defect. The policy is suitable for public and privateworks contracts.

CAR and Decennial Liability policies provide insured companies with flexible coverage of siterisks and risks related to the useful life of the works.

The EAR (erection all risks) policy insures against all risks arising from the construction andinstallation of machinery, plant and steel structures. Cover also includes inspections, tests andpost-delivery damage during the guarantee or maintenance periods.

For certain selected risks, SACE BT also operates in the non-motor business, providing propertyinsurance for civil engineering works (Global Buildings policy) and third party liability in theconstruction industry.

Credit insuranceSACE BT insures companies against the risks of insolvency in connection with commercialtransactions in Italy and all OECD markets, with payment deferred for up to 12 months, andoffers a range of products and services to satisfy the requirements of small, medium and largeenterprises. SACE BT’s insurance solutions provide coverage of commercial risks, which can becombined with political risk coverage.

The BT 360° policy is a tool designed for companies wishing to insure their entire turnover, orsimilar risk classes, providing access to a wide range of ancillary services: from preventiveassessment of customer solvency, to portfolio monitoring, and compensation for losses suffereddue to specialist debt collection services.

Because of its flexibility, this product is suitable for both SMEs and large industrial groups,protecting the turnover of subsidiaries at favourable rates. The LeOn platform allows enterprisesto manage the coverage, display the policy, submit new applications, increase or cancel ceilings,handle sales notifications and check the status of claims and credit recovery.

The Multiexport Online policy is for companies that carry out repeated transactions with one ormore foreign customers. It enables them to insure exports of goods and services against non-payment. Customers may request coverage online through the LeOn platform.

FactoringThrough its factoring company SACE Fct, the SACE Group offers short-term financing ofcompanies’ receivables to help boost their growth.

SACE Fct offers traditional factoring products and a specific range of services for discountingreceivables due from public sector customers.

Italy



Società Italiana per le Imprese all’Estero(Simest SpA)Corso Vittorio Emanuele II, 32300186 RomeItalyTel: (+39) 6 686 351Fax: (+39) 6 686 352 220Website: www.simest.it

Contact: Fabrizio Coletti, head of export credit interest support programmesTel: (+39) 6 686 35811Fax: (+39) 6 686 35840E-mail: [email protected]

Ownership structure:Simest SpA is controlled by the Italian Ministry of Economic Development along withprivate-sector share-holders which include major Italian banks and industrial businessorganizations.

Function:Providing interest support on export credit programmes.

Institution

Simest is bound by OECD consensus rules and carries the full faith and credit of the ItalianGovernment. Commercial banks provide the source for lending.

Export credit programmes:

Buyer’s credit programmeUnder interest make-up (IMU) agreements, banks lend to foreign borrowers at CIRR and receivean agreed return (six month Libor plus spread) from Simest.

If the agreed return is higher than CIRR Simest will pay the difference to the banks. On thecontrary, if the agreed return is lower than CIRR the banks will pay Simest.

Repayment terms are based on OECD consensus rules.

IMU agreements are available in all major currencies.



Supplier’s credit programmeBy means of a dedicated supplier’s credit scheme the exporter may discount debt instruments(i.e. promissory notes/bills of exchange or letters of credit) originated by export of capital goods,bearing CIRR and consensus repayment terms.

Simest grants the exporter interest support in a lump sum equal to the difference between thenet proceeds of the discounting of the debt instruments at eligible rate and their present value atthe CIRR paid by the foreign buyer.

Fees:No application/processing fee is charged.

Italy



EXIM Bank, Jamaica(National Export-Import Bank of Jamaica Limited)11 Oxford RoadKingston 5Jamaica, West IndiesTel: (+876) 960 9690Fax: (+876) 960 9115 or (+876) 960-5956E-mail: [email protected]: www.eximbankja.com

Contacts:Managing Director – Lisa BellManager, Trade Financing & Risks Management – Valerie CrawfordChief Officer, Credit Operations Trade Credit Insurance – Shernette Manning

Ownership structure: 100% Government owned

Function:Provides trade financing and medium term loans supplemented with Trade Credit Insurance.

Institution

EXIM Bank, Jamaica offers short term trade credit insurance cover and short/medium term tradefinancing.

EXIM Bank, Jamaica is not bound by OECD consensus and does not have a Project FinanceDepartment.

Government provides the main source for lending.

Insurance

Under the Trade Credit Insurance umbrella, EXIM Bank Jamaica, offers Commercial Riskscoverage on local and foreign receivables. Political Risk cover can be purchased at an additionalcost. Only short-term cover is available. By offering this facility, EXIM Bank Jamaica aims toencourage local producers of goods and services to extend credit terms to new buyers with aview to expand both domestic and export trade.

Jamaica



Cover – Commercial risk• Up to 85% of the eligible contract value can be insured.• Premium cannot be capitalized into any loan value.• Interest during construction is not covered.• Cover is not provided in foreign currencies.• Cover is provided for Protracted Default, six months after due date.• Cover is provided for insolvency of the buyer.

Cover – Political risks• Up to 90% coverage is offered.• Government directives which prevent or restrict the conversion or transfer of funds.• Where payment is prevented due to war, hostilities or civil unrest.• Cancellation or non-renewal of an export permit.• Cancellation of non-renewal of an import permit.• Residual risk does not have to remain with the lending bank/agency – the policyholder can

carry the risk.

Maximum Insurance Value (%)Buyers Political Commercialprivate 90 85public 90 85sovereign 90 85

Maximum Coverage (%)Political risks Commercial risks


Funding• Government provides the main source for lending.• Loans are available in local and foreign currency.• Repayment terms are 90-180 days for short term loans and up to five (5) years for medium

term loans.


The mission of EXIM Bank, Jamaica is to provide the financial support and Trade CreditInsurance, necessary for Jamaican producers (exporters, potential exporters and those thatprovide support to exporters), to improve the country’s overall domestic and export earnings.

Businesses operating in Jamaica which are eligible for financing from the EXIM Bank include:• Manufacturers• Agro-processors• Full supply chain within the Tourism sector• Minerals and Mining operators and linkage entities, excluding the traditional bauxite sector• Exporters of non-traditional goods manufactured or produced in Jamaica• Linkage support to export sectors• Service providers within the productive sector

Jamaica



Financing is available for:• Working Capital• Capital acquisition• Pre and Post Shipments• Upgrading of physical facilities

Target sectors include:• Export• Manufacturing• Tourism• Agro-processing• Printing & Packaging• Information Technology• Mining

Jamaica



Japan Bank for International Cooperation (JBIC)

4-1, Ohtemachi 1-chomeChiyoda-KuTokyo 100-8144, JapanTel: (+81) 3 5218 3100Fax: (+81) 3 5218 3955Website: www.jbic.go.jp/en/


Institution

Japan Bank for International Cooperation (JBIC) is a policy-based financial institution whollyowned by the Japanese government. It has the purpose of contributing to the sound developmentof Japan and the international economy and society, by taking responsibility for the financialfunction to promote the overseas development and securement of resources which are importantfor Japan, to maintain and improve the international competitiveness of Japanese industries andto promote the overseas business having the purpose of preserving the global environment, suchas preventing global warming. It also provides the financial services that are necessary to preventdisruptions to international financial order or to take appropriate measures with respect todamages caused by such disruption, while having the objective of supplementing the financialtransactions implemented by ordinary financial institutions.

Financing

JBIC’s mission is to contribute to the sound development of Japan and the international economyand society by conducting its operation in the following fields:• Promoting the overseas development and securement of resources which are important for

Japan• Maintaining and improving the international competitiveness of Japanese industries• Promoting the overseas business having the purpose of preserving the global environment,

such as preventing global warming• Preventing disruptions to international financial order or taking appropriate measures with

respect to damages caused by such disruptions.

JBIC’s operations

Export LoansExport loans provide funds to support exports of machinery and equipment by Japanesecompanies and overseas transfer of their technologies.

Japa

nExport Credit Agencies


Import LoansImport loans provide funds to support imports of natural resources or other materials strategicallyimportant to Japan. Apart from resources, JBIC provides a guarantee facility for the import ofgoods and services essential to the sound development of Japanese economy, such as aircraft.

Overseas Investment LoansOverseas Investment loans provide funds to support overseas operations implemented byJapanese firms such as manufacturing and sales or infrastructure projects, as well as to supportM&A deals with foreign companies, the acquisition of natural resource interests and resourcedevelopments.

Untied LoansUntied loans provide funds to support improvements in the overseas business environment tofacilitate Japanese trade, investments and other overseas business activities. Untied loans alsosupport projects undertaken by foreign governments and government agencies.

Equity ParticipationsEquity participations are investments in overseas projects or funds involving Japanesecompanies.

GuaranteesGuarantees are provided by JBIC to supplement and encourage financing from private financialinstitutions

Bridge LoansBridge loans provide short-term financing for developing country governments facing balance-of-payments difficulties to enable them to ride out temporary strains in foreign currencymanagement.

Research and StudiesJBIC conducts research and studies to support its financial operations

Securitization, etc.JBIC provides support for the securitization of loan claims of private financial institutions andreceivables of private companies

Project Finance

Project finance means a financial structure in which repayments for a loan provided for a projectare made exclusively from the cash flows generated by the project while security for the loan islimited to the project assets, rights, and interests.

As project finance involves many participants and requires a diverse set of contracts, thenegotiation process is very complicated. The participation of JBIC in these projects is expected toprovide benefits such as strengthening the project structure and facilitating the negotiation andcoordination process for financial structuring as well as reducing political risk associated withdoing business in developing countries.

Since providing the first project finance loan in 1986 for the LNG Development Project in West

JapanExport Credit Agencies


Australia, JBIC has steadily expanded its sectoral reach into mineral resources, power andmanufacturing. It has also expanded its operations geographically from Latin America and Asia toinclude Africa and the Middle East.

JBIC established its Project Finance Office in 1988 as a specialized division for dealing withproject finance. Since then JBIC has assumed a pioneering role among public financialinstitutions and has steadily built a track record in this area. In July 2008, JBIC’s financedepartments were re-configured so as to allow each finance department to offer project financeto its customers, with a view to further mainstreaming project finance. At the same time, theProject Finance Committee, comprising representatives of each finance department, wasestablished within JBIC, as a forum to exchange views and information regarding project financetransactions, and as a means to ensure a coherent approach to various issues pertaining toproject finance.

By fully leveraging its abilities as a public institution, JBIC contributes to reducing and mitigatingpolitical risks of developing countries, leads negotiations and due diligence, plays the role ofcoordinator with international institutions and overseas government institutions on projectstructuring, and also takes the lead in conducting negotiations on project restructuring. JBIC’sscope of financing has also expanded into projects that bear demand and product price risks aswell as mezzanine financing.

We plan to actively undertake projects in the areas of natural resources, renewable energy/energy efficiency, and SMEs. In line with the dramatic increase of projects in the Middle East, weare also taking on the challenge of cooperation with financing within the framework of Islamiclaw, in order to ensure that financing for such projects are structured efficiently. We plan tosupport Japanese companies in seizing new business opportunities by structuring “tailor-made”financing in response to the specific characteristics of projects that have become increasinglydiversified, and by providing “hybrid” solutions combining various products offered by otherpublic institutions and private financial institutions.

Examples of project financing contracts include:• Combined Cycle Gas Turbine Power Generation Project in Thailand• Espadarte FPSO Project in Brazil• The AI Hidd Independent Water and Power Producer Project in Bahrain• Project Finance Loan and Political Risk Guarantee for Philippines’s Power Project Portfolio

Acquisition• Ambatovy Nickel Project in Madagascar• The Fujairah F2 Power and Desalination Project in the UAE• Buyer’s Credit Supports Japanese Plant export for Yemen LNG Project• Power and Desalination Project in Qatar• Tanjung Jati B Coal-Fired Power Plant Expansion Project in Indonesia• LNG Project in Papua New Guinea• Paiton Thermal Power Plant Expansion Project in Indonesia• Cirebon Thermal Power Plant Project in Indonesia• Ultra-Deepwater Oil Drilling Project of Petrobras• Buyer’s Credit for Jubail Refinery Project in Saudi Arabia• Buyer’s Credit for ERC Refinery Project in Egypt• Shuweihat S3 Power Project in the UAE

Japa



Nippon Export and Investment Insurance(NEXI)Chiyoda First BuildingEast Wing 3rd Floor,3-8-1 NishikandaChiyoda-kuTokyo 101-8359JapanTel: (+81) 33512 7650Fax: (+81) 33512 7660Website: http://nexi.go.jp/en/E-mail: [email protected]

Ownership structure: 100% state-owned

Function:Provides short-, medium- and long-term insurance

Institution

NEXI is an incorporated administrative agency formed on April 1st 2001 under the Trade andInvestment Insurance Law. NEXI was launched as a successor to the trade and investmentinsurance administered by the Japanese government. As the authority and reinsurer for NEXI, thegovernment (Ministry of Economy, Trade and Industry) retains ultimate responsibility.

Insurance

Insurance of export risks is provided by NEXI. It offers a full range of policies which aim to coverthe spectrum of trade risks not commercially insurable. The basic policies are: Export CreditInsurance(insurance for export, intermediary trade and technical cooperation); IntellectualProperty License Insurance; Buyer’s Credit Insurance; Trade Insurance for Standing Orders fromSpecific Buyer; Comprehensive Export Insurance with Simplified Procedure; Export CreditInsurance for SMEs; Overseas Untied Loan Insurance; Overseas Investment Insurance; Export BillInsurance; Prepayment Import Insurance; Investment and Loan Insurance for Natural Resourcesand Energy; and Trade and Investment Insurance for Preventing Global Warming. In all casesNEXI is the insurer.

JapanExport Credit Agencies


Cover

Political Risks• Exchange restriction/prohibition, import restriction/prohibition• War, civil war, revolution• Delay in remitting foreign currency caused by the originating country• Punitive high customs duties, dock strikes, terrorism• Natural disasters etc.

Commercial Risks• Unilateral cancellation of export contract with a foreign government• Bankruptcy of the other party• Incidents similar to bankruptcy of the other party• Default on the obligations for three months or longer by the other party

Japa



Jordan Loan Guarantee Corporation (JLGC)24 Prince Shaker Ben Zaid StreetShmeisani- AmmanJordanPO Box 830703Amman11183 JordanTel: (+962-6) 562 5400Fax: (+962-6) 562 5408

Contact: Dr. Mohamed al-Jafari

Ownership structure: 58.3% sovereign, 41.7% private

Function:Provides short-term guarantees and insurance

Institution

The Export Credit Guarantee Programme has been established and operated by the Jordan LoanGuarantee Corporation (JLGC) since 1998. JLGC provides guarantees and insurance for both thepre-shipment and post-shipment stages.

JLGC is not bound by OECD consensus and does not have a project finance department. JLGChas signed a partnership and a reinsurance agreement with Coface and is a member of theCredit Alliance. It also has a pre-shipment guarantee agreement with 12 Jordanian commercialbanks and one foreign bank. Commercial banks and the rediscount facility of the central bankprovide the source for lending.

Guarantees

Application• Lender and supplier may apply for a letter of interest, preliminary commitment or final

commitment.

JordanExport Credit Agencies


Cover• Residual risk does not have to remain with the lending bank/agency – the supplier can carry

the risk.• Average credit periods for pre-shipment are six months. However under special

circumstances it could be extended to 1 year.

Maximum guarantee of export value (%)Buyer’s political commercialPrivate 0 75Public 0 0Sovereign 0 0

Interest• The CIRR is not offered.• Guarantees are provided for fixed-interest rate.

Fees• An application fee of 1.5% each year is charged upon application.• Premium are charged up front and on the guaranteed amount.

Insurance

JLCG provides commercial and political export credit insurance for up to six months creditperiod.


commitment.

Cover• Up to 90% of the eligible contract value can be insured.• The premium may be capitalized into the loan value.• Local content may be insured.• Insurance is not available for multiple sales financed under a single line of credit provided by

a bank to foreign banks or buyers.• Cover can be provided in foreign currencies, without foreign exchange loss cover.• Bills covered by insurance policies can be freely transferred.

Maximum insurance of export value (%)Buyer’s political commercialPrivate 90 90Public 90 90Sovereign 0 0

Maximum coverage of export credit insurance (%)Political risks commercial risks

Short-term 90 90Medium-term 0 0Long-term 0 0

Jordan



Fees• An Inquiry fee is charged at Jd70 ($100) for OECD members and Jd150 ($211) for non

OECD members.• A standard processing/application fee is charged at Jd200 ($281).• A (1.0% – 1.5%) Premium charged on the shipment value.


ECA alliances/agreements• JLGC has an alliance and cooperation agreement with Coface (France). It is a member of

Credit Alliance.• JLGC also has cooperation agreements with all local banks.

JordanExport Credit Agencies


Eximbank Kazakhstan

118 Pushkina StreetAlmaty 480021KazakhstanTel: (+7 3272) 62 28 05

(+7 3272) 50 75 47Fax: (+7 3272) 50 75 49Email: [email protected]


Function:Provides guarantees and finance

Institution

Eximbank Kazakhstan (Eximbank) is a closed joint-stock company with 100% state participation.Eximbank provides credit resources to Kazakh companies on a medium- and long-term basis. Italso works as a commercial bank, carrying out mainly short-term financing of export-importtransactions. It is the financial agent of the government of Kazakhstan on the service of exportcredits and foreign loans, which are attracted under government guarantees.

Eximbank does not provide insurance because under Kazakhstan legislation banks can not carryout insurance activity.

Guarantees and Financing

Activities include:• Providing direct loans to Kazakh private customers. Commercial risks do not need to be

covered by any export credit agencies.• Issuing guarantees• Issuing letters of credit• Eximbank provides financing in tenge, dollars, euros, Swiss francs and yen.

Interest

• Interest rates and commissions depend on the amount and terms of the transaction, and onthe type of customer.

Kazakh

stan



Office du Ducroire (ODL)7, rue Alcide de GasperiL-2981 LuxembourgTel: (+352) 42 39 39 320Fax: (+352) 42 39 39 821E-mail: [email protected]: www.odl.lu

Contact:Mr Etienne Reuter, presidentMrs Simone Joachim, secretary general

Ownership structure: 100% public

Function:Provides short-, medium- and long-term credit insurance

Institution

Office du Ducroire (ODL) provides insurance cover in conjunction with private sector exportfinance. Policies cover up to 98% for political risks and 95% for commercial risks. ODL benefitsfrom the full faith and credit of the government and is bound by OECD consensus. It does nothave a project finance department.

Insurance

One of the prerequisites for financing exports of capital goods and services outside WesternEurope is coverage of political and commercial risks by ODL. The organization coverstransactions on behalf of the state for deals that it would not insure on commercial grounds. Itcan also cover market activities on its own account. The organization insures pre- and post-shipment risks and can extend its activity to any matter that could promote internationaleconomic relations.

Application• Both lenders and suppliers may apply for a letter of interest, preliminary or final commitment.

Cover• Up to 98% of 85% of the eligible contract value can be insured.• Up to 100% of the premium can be capitalized into the loan value.• Third country goods can be covered: 30/40% for EU and 30% for non-EU countries.

Luxembourg



• Up to 100% of interest during construction can be covered.• Up to 98% of political risks and 95% of commercial risks can be covered during

construction.• Local costs can be insured, but the amount of local costs supported on credit terms shall not

exceed the amount of the cash payment.• Insurance is available for short-, medium- and long-term political and commercial risks.• Insurance is available for multiple sales financed under a single line of credit provided by a

bank to foreign banks or buyers.• Cover can be provided in foreign currencies.• Bills covered by insurance policies can be freely transferred.• Losses relating to ownership:

– This covers total or partial loss of the investment when characterized by one of thefollowing conditions:

– Where the insured is prevented from exercising the rights attached to the investment.– Where the property of the foreign enterprise is either totally or partially destroyed.– Where the operation of the enterprise is totally or partially hindered.

• Losses relating to non-payment or non-recovery, impossibility of repatriating the fundsavailable in the host country.

• Causes of total losses occurring:– Eventualities in the host country which appear to be the result of force majeure:– Political acts such as war, revolution, riots.– Catastrophes such as cyclones, floods, earthquakes, volcanic eruptions or tidal waves.– Acts, decisions or irrefutable laws passed by public authorities such as nationalization,

expropriation, confiscation, sequestration, liquidation, or dissolution of the foreignenterprise, violation of the investment agreement, modification of the legislation.

– Any other discriminatory act or deed likely to produce equally negative consequences.• Constitutional total loss period – this is for six months, with the starting date varying according

to the type of loss covered: six months after the date of eligibility of the unpaid debt if it is acase of unpaid total losses or six months after the date of deposit of repatriated funds in abank of the host country and fulfilment of necessary acts of the conversion and transfer of thisdeposit if these are non-transferable total losses. The constitutional total loss period will beterminated in the event of total losses being preceded by damage to the project.

• Insurance cover – insurance of the principal applies to the original value of the investment.This amount can be lowered at the request of the insured, and it may be raised again withODL’s agreement should the value of the investment increase.

• The bank must retain 2% of the principal risk and 5% of the interest risk and can transferthe rest to the exporter.

Maximum guarantee of loan value (%)Political risk (P)P + public debtorP + private bank Private debtor Private bank98% 95% 98%98% 95% 95%95% 95% 95%98% 90% 95%95% 90% 95%90% 85% 90%85% 80% 85%80% 75% 80%

Luxembo

urg



Interest• Interest support is offered by COPEL (Comité pour la Promotion des Exportations

Luxembourgeoises).• Insurance can be provided for both fixed-interest and floating-interest rate loans.

Funding• Commercial banks can supply funding.

Fees• No processing/application fee is charged.• Premia are paid up front on the financial amount and the contract value.• Flat rate premia are charged on total exposure.


Investment insurance and financeThe provision of insurance cover for investments overseas takes into account political risks. Theobjective of ODL is to offer the potential investor the necessary security to realise his investmentobjectives and to protect his rights. Even so, ODL is not willing to take on the role of investor.

EligibilityIn order to qualify for cover the investment has to meet one of the following conditions: that theinvestment contributes to the economic and social development of the host nation or theinvestment contributes to the development of economic relations between the host nation andLuxembourg.

ECA alliances/agreements• ODL has reinsurance agreements with EDC (Canada), OeKB (Austria), Coface (France), ECGD

(UK), Atradius (Netherlands), Euler Hermes (Germany)and Finnvera (Finland), EKF (Denmark), ,SACE (Italy), CESCE (Spain), EKN (Sweden) and SERV (Switzerland)

• ODL has a cooperation agreement with ONDD Belgium and Euler Hermes (Germany),Sinosure (China), ECGC (India).

Luxembourg



Export-Import Bank of Malaysia Berhad(Exim Bank)8th Floor, UBN TowerNo. 10, Jalan P. RamleeP.O. Box 1302850796 Kuala LumpurMalaysiaTel : +60 3-2034 6666Fax : +60 3-2034 6699Website: www.exim.com.my

Ownership: Wholly-owned by the Government of Malaysia and reports directly to Ministry of Finance.

Function:To facilitate Malaysia's exports, international trade and overseas investments.

Financing:Direct to exporters as well as indirectly through commercial & islamic banks.

Facilities

Supplier CreditShort-term trade finance to finance the exports of Malaysian manufactured goods.• Financing of export order is subject to an administrative limit and availability of credit line

with Exim Bank.• Revolving in nature.• Interest is charged on the financing amount.• Pre-shipment financing is for raw materials, finished goods and overhead.• Post-shipment financing is to bridge the credit terms offered to importers.• Tenor- upto 120 days (pre-shipment) and 180 days (post-shipment).• Maximum margin of financing is 90% for pre-shipment and 100% for post-shipment.

Malaysia



Export Credit Refinancing (ECR)Short-term refinancing scheme by Exim Bank to commercial and Islamic banks to refinance theirprovision of trade finance to exporters in the exports of Malaysian manufactured goods.• Financing is subject to an administrative limit and availability of ECR line with commercial

and Islamic banks.• Revolving in nature.• Interest/profit rate is charged on the financing amount.• Pre-shipment financing is for raw materials, finished goods and overhead.• Post-shipment financing is to bridge the credit terms offered to importers.• The period of pre-shipment financing is upto 120 days.• The period of post-shipment financing is in accordance with the credit period extended by

exporter to importer, subject to a minimum of seven days and a maximum of 180 days.• Maximum margin of financing is 80% for pre-shipment and 100% for post-shipment, subject

to a maximum loan of RM50 million.

Guarantee

To facilitate the issuance of bonds (Tender/Bid Bond, Performance Bond, Advance Payment Bond,Warranty Bond, Standby Letter of Credit, etc) for overseas contract undertaken by Malaysiancontractors and also to enable Malaysian investors to raise funds overseas.• Eligibility – Against overseas contracts only or investments• Tenor – Up to the requirement of the contract or funding requirement of investment project• Security – Any or not limited to Corporate Guarantee, Shareholders and / or Directors

Guarantee, Cash margin, Assignment of relevant contracts, agreements and insurancepolicies

Buyer CreditA loan extended directly to a foreign buyer or lending institution to facilitate the import ofMalaysian goods and services. Loan disbursements are made directly to the Malaysian exporter /contractor. The facility provides opportunities for the Malaysian exporter and contractor in biddingfor/performing overseas jobs and contracts.• Margin – Up to 85% of Project Cost or Contract Value. (100% to foreign government)• Eligibility – The supplier/contractor must be a Malaysian based company and for the export

of Malaysian goods and services• Tenor – Up to 10 years (inclusive of grace period).• Interest Rate – Cost of fund plus spread.• Security – Corporate Guarantee, Government / Bank Guarantee or Other securities

acceptable to the Bank.

Overseas Project FinancingTo finance Malaysian companies investing in projects overseas such as infrastructure,manufacturing and other developmental projects.• Margin of Financing – Up to 85% of Investment Project Cost.• Tenor – Up to 10 years (inclusive of grace period).• Interest Rate – Cost of fund plus spread.• Security- Corporate Guarantee, Government / Bank Guarantee, fixed assets or other

securities acceptable to the Bank.

Malaysia



Overseas Contract FinancingTo support Malaysian contractors undertaking contracts overseas.• Margin of Financing – Up to 85% of Contract Value.• Tenor – up to contract requirements.• Interest Rate – Cost of fund plus spread• Bond commission – max 3% p.a.

Export of ServicesTo finance Malaysian companies in exporting their professional services.• Margin of Financing – Up to 70% of Contract Value.• Tenor – up to contract requirements, not exceeding 5 years.• Interest Rate – Cost of fund plus spread• Bond commission – max 3% p.a.

Malaysia Kitchen FinancingTo finance Malaysian companies in setting-up Malaysian restaurants overseas.• Margin of Financing – Up to 90% of project cost.• Tenor – not exceeding 5 years.• Interest Rate – 3%

Credit Insurance• Various policies are available to protect exporter/investor against losses due to commercial

and political reasons while engaging in international trade, overseas contract and overseasinvestments.

• Commercial risks -due to buyer’s insolvency, buyer’s payment default, non-acceptance ofgoods, etc.

• Political risks – due to transfer risk, cancellation of license, embargo, war, civil disorder,catastrophic etc.

• Claims payable – up to 90% of loss (commercial) and 95% of loss (political).

Malaysia



Banco Nacional de Comercio Exterior(Bancomext)Periférico Sur 4333Colonia Jardines en la Montaña14210 Mexico DFMexicoTel: (+52) 54 49 90 00Fax: (+52) 54 49 90 28

From USA and Canada.Toll FreeTel 1 800 835 74 80


Function:Provides short-, medium- and long-term guarantees and finance; promotional and advisoryservices for international trade

Institution

Bancomext provides guarantees and financing. Bancomext carries the full faith and credit of theMexican government. The company is bound by OECD consensus and has a dedicated projectfinance department. Direct loans, commercial banks and government departments/agenciesprovide the source for lending.

Bancomext additionally offers a range of promotional services to keep the business communityinformed, to foster foreign trade activities and to enhance the international competitiveness ofMexican businesses.

Funding• Bancomext can provide direct loans.• Bancomext also provides funding to commercial bank and other financial intermediates that

offer export financing to exporters and his suppliers.• • Loans may be available in local currency (Mexican pesos) as well as US dollars.• Repayment terms are based on OECD consensus.

Fees• No processing/application fee is charged.• Commitment fee on loans are charged on a case-by-case basis.

Mexico



Project Finance

Cover provided for project finance is highly individual. The following points may apply:


Support according to company production process stagesBancomext has a full range of credit products reflecting the production process phases ofcompanies involved in foreign trade:

Working Capital FinancingThe production, stocking of raw materials and finished goods, service delivery, as well as theimportation of raw materials, parts, packing materials, spare parts, and auxiliary suppliesincorporated to export goods are granted financing.

Sales FinancingSales of products and services abroad are financed to provide companies with the necessaryresources under competitive conditions to perform successfully in international markets.

Investment projects

Financial resources are granted to projects generating foreign currency in thefollowing phases:• Construction, supplying, expansion, modernization, divesting, re-location or purchase of

production facilities.• Technological development and design.• Real estate developments, such as the construction of industrial parks and tourism projects.

Acquisition of equipmentBancomext fosters the modernization of companies by granting credit for the acquisition ofdomestic or imported equipment. This encourages the improvement of productive processesenabling companies to compete better internationally.

Bancomext also grants standby credits, bid bonds, advanced payment bonds and performancebonds for Mexican companies participating in international bids.

Mexico



AtradiusContact:Remmelt TempelmanAtradius Dutch State BusinessRegional Team ManagerTel. +31 (0)20 553 2912Fax +31 (0)20 553 2087E-mail:[email protected]

Ownership structure:Grupo Catalana Occidente, through variousbusiness entities, is the primary shareholderof Atradius with a direct and indirect stake of 100%.

Function:Atradius provides for its own account short term credit insurance, structured credit insurance,debt collection services, information services and exchange rate cover. Atradius is also the ExportCredit Agency (ECA) of the Netherlands since 1932.

Institution

For account and in name of the Dutch government Atradius provides insurance for medium- andlong-term business. Atradius follows the OECD Arrangement and carries the full faith and supportof the Dutch government. Policies cover up to 98% for political and 95% for commercial risks.The company also runs a dedicated structured finance team to deal with insurance applicationswith respect to project financing and asset based financing transactions.

Insurance

Atradius provides both domestic and export credit insurance directly and also acts as the ExportCredit Agency for account of the Dutch government.

Products on offer for government account include capital goods cover, construction works cover,supplier credit guarantee, buyer credit cover, export credit guarantee, bond cover, lease cover,ILC cover, exchange rate cover, working capital cover, import cover and investment insurance.

Application• Lender and supplier may apply for preliminary commitment or final commitment.• Up to 100% of the eligible contract value can be insured.

Visiting address:David Ricardostraat 11066 JS AmsterdamPostal address:P.O.Box 89821006 JD AmsterdamThe NetherlandsTel: (+31) 20 553 9111Fax: (+31) 20 553 2811E-mail: [email protected]: www.atradius.com,

www.atradius.nl,www.atradiusdutchstatebusiness.nl

NetherlandsExport Credit Agencies


• Up to 100% of the premium can be capitalized into the loan.• Up to 100% of the interest during construction can be covered.• Financing for up to 85% of the contract price can be insured.• Third country goods can be covered: up to 50% for EU and non-EU countries. Occasionally

higher percentages are acceptable for national interest reasons.• Short, medium and long-term export credit insurance is available.• Credit insurance can be available for multiple sales financed under a single line of credit

provided by a bank to foreign banks or buyers.• Buyer credit cover can be provided in acceptable foreign currencies.• Residual risk does not have to remain with the lending bank: the supplier can carry the risk.



• Overseas investment insurance for equity and investment loans is offered. Political riskscovered include expropriation, war, transfer and breach of contract.

Interest• Insurance can be provided for fixed- and floating-interest rates.• Delay interest (the interest cost incurred between non-receipt of payment under the loan and

payout under the export credit) can be insured.• The usual delay/claim period from default to payout is three months.

Funding• Commercial banks supply funding.• Atradius can issue an Credit Guarantee (ECG) to suppliers of capital, often institutional

investors, to finance banks for export loans to be provided by banks. The ECG coversfinanciers against the risk of non-payment under these loans.

Fees• Fees are only charged for the second and further prolongation of promises and advices of

cover. The fee is 0,05% of the maximum compensation with a minimum of a150, - and amaximum of a500.

• Premiums are paid up front.• For buyer credit cover premiums are charged on the financed amount and for supplier credit

cover they are charged on the contract value.

Structured Finance

Atradius has a dedicated structured finance team which deals with all insurance applicationswith regard to project financing and asset based financing transactions.

General terms and conditions Atradius requires under project financing:• Equity required is determined on a case-by-case basis.• Risk sharing by arranging/commercial banks is determined on a case-by-case basis. In

principle, 30% may be required in case of comprehensive cover.

Netherland

sExport Credit Agencies


• Recourse to a project sponsor/supplier is determined on a case-by-case basis.• Usually the bank’s engineering report is accepted.

Cover provided for project finance is highly individual. The following pointsmay apply:• Up to 98% of political and up to 95% of commercial risks may be covered during

construction.• Up to 50% of local content can be insured.• Atradius will cover approximately 70% of total eligible loan amount (related to Dutch exports)

in case of comprehensive cover. This percentage may be higher if lenders run substantialcommercial risks also.

ECA framework reinsurance agreementsAtradius has framework reinsurance agreements with EFIC (Australia), ONDD (Belgium), SID(Slovenia), EKF (Denmark), Nexi (Japan), Cesce (Spain), EKN (Sweden), GIEK (Norway), ODL(Luxembourg), OEKB (Austria), ECGD (UK), Coface (France), EulerHermes (Germany), SACE (Italy),ASHRA (Israel), KUKE (Poland), EDC (Canada), Finnvera (Finland), EGAP (Czech Republic), MEHIB(Hungary), SERV (Switzerland) and US Exim (US).

Atradius has framework cooperation agreements with Sinosure (China) and ECIC (South Africa).

NetherlandsExport Credit Agencies


The New Zealand Export Credit Office(NZECO)

No 1 The TerracePO Box 3724WellingtonNew ZealandTel: (+64) 4 917 6060 | Fax: (+64) 4 917 6956Website: www.nzeco.govt.nz | Email: [email protected]

Contact via emailCarmen Moana, Manager Email: [email protected] Chapman, Head of Origination. Email: [email protected] Robertson, Senior Product Specialist. Email: [email protected] Fleming, Contract Bond Specialist. Email: [email protected] Tate, Head of Underwriting. Email: [email protected] Macam, Underwriter Analyst. Email: [email protected] Holleman, Research Analyst. Email: [email protected]

Ownership structure: 100% Government-owned

Function:NZECO provides financial guarantees and insurance to exporters and banks. Our products extendprivate sector capacity to help exporters manage risk and capitalise on trade opportunities.NZECO obligations to third parties are guaranteed by the Government. New Zealand is an OECDmember and complies with the International guidelines governing export credits (including theWorld Trade Organisation rules and regulations). NZECO is a member of the Berne Union Prague Club.

Institution

NZECO currently operates from within the New Zealand Treasury, with a Technical AdvisoryCommittee appointed to assist the Secretary to the Treasury in approving deals.

New Zealand



Insurance

NZECO provides short-term trade credit and co-insurance agreements, medium-long-term tradecredit insurance, US surety bond guarantees, general contract bond guarantees and short-termworking capital guarantees to banks and exporters.

Short-term trade credit insuranceNZECO offers trade credit insurance to exporters who are unable to obtain private trade creditinsurance on creditworthy buyers. NZECO will insure the exporter (or their bank) in the event theirbuyer subsequently fails due to commercial or political risks, up to 90% cover for commercialand 90% cover for political risks.

Medium-long-term export credit insuranceNZECO offers insurance to exporters and banks for medium to long term business (includingproject finance deals). Policies cover up to 95% for commercial and 95% political risks.

US Surety Bond GuaranteeThis is a guarantee from NZECO to a US Surety Bond Provider guaranteeing the performance of aNZ exporter. In the event the bond is called, NZECO will fully indemnify the US surety bondprovider. This product enables NZ exporters to bid for US federal and state contracts that requirea surety bond (which are typically 100% of the contract value).

Working Capital GuaranteeThis is a guarantee from NZECO to a bank, enabling the bank to lend additional funds tosuccessful exporters that are facing short term working capital constraints.

Contract Bond GuaranteeUnder this product NZECO guarantees the performance of a NZ exporter to a bond issuer(typically the exporter’s bank), in order to enable the issuance of bid bonds, advance paymentbonds, performance bonds and/or warranty bonds to a foreign buyer. It covers fair and unfaircalling of bonds.

Application and AssessmentNZECO’s application forms for the above products are available on NZECO’s website or byenquiring directly with the NZECO. Each transaction is assessed on a case-by-case basis. Recentchanges to NZECO’s mandate ensure that in order to meet some of NZECO’s eligibility criteria,the applicant must confirm that they are a NZ registered company or a subsidiary of a NZregistered company domiciled overseas. In relation to NZ content, applications must now providea description of the economic benefits to New Zealand relating to the delivery of the goodsand/or services provided under the export contract. NZECO’s approval and premium rates varyaccording to product type, corporate risk, loss history, claims experience and country risk.

The NZECO has a framework reinsurance agreement with EFIC (Australia).

New Zealand



Nigerian Export-Import Bank (NEXIM)Calabar Area OfficeCalabar Export Processing ZoneP.M.B. 1127Calabar, NigeriaTel: (+234) 87 210017Fax: (+234) 87 210016E-mail: [email protected]

Kano Area OfficeFatima HouseNo 18b Murtala Mohammed WayP.M.B 3502, KanoTel: +234-64-638306Fax: +234-64-636147E-mail: [email protected]

Our mandateThe Nigerian Export – Import Bank was established by Act 38 of 1991 as an export credit agencywith the broad mandate to promoting the diversification of the Nigerian economy and deepeningthe external sector, through the provision of the following services in support of non-oil exports: • Credit facilities in both local and foreign currencies,• Risk-bearing facilities – (Export Credit Guarantee & Export Credit Insurance)• Business development and financial advisory services• Attracting foreign investment capital through

– availment of concessional lines of credit/ co-financing arrangements– facilitation of buyers’ / suppliers’ credit towards the adoption and acquisition of new and

clean technologies, assess to patents/intellectual properties, etc• Trade & market information services

Ownership structureNEXIM Bank is jointly owned in equal proportions by the Central Bank of Nigeria and the FederalGovernment Ministry of Finance Incorporated and the Central Bank of Nigeria.

Corporate Head OfficeNEXIM HousePlot 975 Cadastral Zone AOCentral Business District AbujaTelephone: +234-9-6281630-39Fax: +234-9-5241640Website: www.neximbank.com.ngE-mail: [email protected]

Contact:Mr. Chinedu MoghaluTel: +234 9 -4603644E-Mail: [email protected]

Lagos Area Office31d Thompson Avenue, Off Glover Road Ikoyi, Lagos-NigeriaTel: (234) 1 – 26671164, 2662305Fax: (234) 1 – 2641129E-mail: [email protected]

Nige

ria



Our missionTo become a first class institution promoting a diversified export base through the provision offinance, risk bearing facilities and advisory services in line with government trade policy

Our visionTo be the leading export credit agency in Africa

Strategic objectives/productsIn pursuit of its general mandate of promoting export diversification and deepening the value-added non-oil exports, the bank’s current strategic initiatives are targeted towards sectors withhigh employment and export generation potentials, such as the manufacturing, agro-processing,solid minerals and services (tourism, transportation and entertainment) termed the MASS Agendaof NEXIM Bank.

These are achieved through the provision of the following key financial products such as:• Rediscounting and Refinancing Facility – An interbank discount window designed to assist

commercial banks provide short-term finance in local currency at preferential rates insupport of exports.

• Foreign Input Facility – Designed to grant short, medium and long term fixed rate loans inforeign currency, to participating banks on behalf of their export clients.

• Direct Lending Facility – Designed to grant short, medium and long term fixed rate loans, toexporters directly and/or under co-financing/syndication arrangement with eligible banks toassist exporters complete their export sales.

• Stocking Facility – Designed specifically to assist manufacturing exporters to have adequateworking capital to stock local raw materials that are mainly seasonal in nature to achieveoptimum level of production all year round.

Risk bearing facilities• Export Credit Guarantee Facility- This provides cover to financial institutions/suppliers against

risk of payment default on facilities availed by exporters.• Export Credit Insurance Facility- Designed to protect exporters against commercial and

political risks associated with export business.

Eligible borrowers/beneficiaries• Commercial banks• Merchant banks• Exporters’ duty registered in Nigeria as a limited liability company or cooperative society.

INeligible exports• Armaments, ammunitions and other military equipment.• Psychotropic drugs and narcotics.• All items prohibited by international conventions or environmental constraint.• Pornographic and obscene materials.• Items prohibited for importation/exportation by prevailing government policies/guidelines.�

NigeriaExport Credit Agencies


Specialized funding initiatives• ECOWAS Trade Support Facility- This Facility is designed to formalise trade, deepen the

payment system, improve the flow of trade from Nigeria to the sub-region and enhance pricecompetitiveness. It is made available in local and foreign currency to provide short termfinancial accommodation to traders in support of exports to the West African region.

• The Regional Sealink Project: To increase the non-oil trade flows and deepen the regionalintegration process, the Nigerian Export-Import Bank in collaboration with the Federation ofWest African Chamber of Commerce and Industry (FEWACCI) has produced aTechnical/Feasibility report on the need to establishing an efficient maritime transportationsystem for the movement of persons, goods and services within the West and Central Africansub-region (WCA) in order to reduce the prevailing high transport, freighting and logisticscosts.The Sealink initiative is being implemented as a Public-Private-Partnership project whichwould culminate in the establishment of a regional maritime company to be owned andoperated by the private sector.

• Funding Interventions To The Creative Arts & Entertainment Industry Loan Scheme (NCEILS):In line with the Federal Government policy initiative to provide financial intervention to thecreative and entertainment industry, the bank developed The operating guidelines incollaboration with key industry stakeholders to facilitate access to funding towards thesustainable development of the creative arts and entertainment sector. The bank’s role inenhancing this initiative is essentially to provide funding intervention to eligible beneficiaryprojects that meets its eligibility criteria and support for capacity building

Nige

ria



Garantiinstituttet for eksportkreditt (GIEK)(Norwegian Guarantee Institute for ExportCredits)Visiting address: Dronning Maus gate 15, OsloMail address: Postbox 1763 Vika0122 OsloNorwayTel: (+47) 22 87 62 00Fax: (+47) 22 83 24 45E-mail: [email protected]: www.giek.no


FunctionProvides short-, medium- and long-term guarantees. Short-term insurance is provided by its100% owned subsidiary GIEK Kredittforsikring AS, (GIEK Credit Insurance Ltd.) GK:

GIEK Kredittforsikring ASVisiting adress: Rådhusgaten 25, OsloMail adress: Postbox 1341 Vika, 0113 OsloTel: +(47) 46 87 2000E-mail: [email protected]: www.giekkreditt.no

Institution

The Norwegian Guarantee Institute for Export Credits (GIEK) provides guarantees and insurance.The main policies available cover export credits, investment, bond, tendering and preshipment.Whole-turnover credit insurance for short-term transactions is provided by GIEK’s subsidiary GIEKKredittforsikring AS,(GK):

Policies issued by GIEK may cover up to 100% for sovereign risks and 95% for political risks andup to 90% for commercial risks. Maximum coverage for ST risk is 95%. GIEK is bound by OECDconsensus and it carries the full faith and credit of the Norwegian government. The CIRR isoffered by the financial institution Eksportkreditt Norge AS

GIEK adheres to the rules laid down by OECD on environment, anti-corruption etc., and hasadopted its own regulations as to ethical standards.

Norway



Guarantees

Application• Lender or supplier may apply for preliminary commitment or final commitment. Buyer may

also approach for information etc.• On average it takes one to five weeks to process an application.

Cover• Up to 100% of 85% of the eligible contract value can be guaranteed for medium/long-term

policies if sovereign risk, up to 90% of 85% if commercial risk.• Up to 100% of the guarantee fee can be capitalized into the loan value.• Third country goods may be covered: up to 70%.• Up to 100% of interest during construction may be covered.• Short- and medium-/long-term cover is provided. Short-term policies are up to 720 days,

medium/long-term policies start at 720 days.• Cover can be provided in all leading OECD currencies.• Otherwise local currencies are considered case by case.• Predelivery risks may be covered.• Working capital guarantees are not generally offered, limited to shipyards and offshore

activities.• Investment guarantees are offered (political risk only).• Bills covered by GIEK guarantee are not freely transferable.• Swap-breakage costs on interest rates can be covered.• Swap-breakage costs on exchange rates are not covered.• Guarantees are available for short term – multiple sales financed under a single line of

credit.• Residual risk does not have to remain with the lender: the supplier or a bank can carry this

risk.

Maximum guarantee of export valueFor medium- and long-term creditsbuyers political commercialprivate 90 90public 95 95sovereign 100 100(percentage of 85% of the contract value, 100% of the contract value if credit period is less thantwo years.)

GIEK operates a scheme for guaranteeing working capital for shipyards when building ships andmanufactures of facilities to be used off-shore, and the max. coverage to the bank/lender is 50%.The scheme insuring contracts on domestic sale & purchase of power has a max coverage of 80%.

Interest• The CIRR may be offered via the financial institution Eksportkreditt Norge AS• Guarantees can be provided for fixed interest as well as for floating interest rate loans.• Delay interest (interest cost incurred between non-receipt of payment under the GIEK policy)

can be guaranteed.• The usual delay/claim period from default to payout is two months for short term credits

under the whole turnover policy, six months for other policies.

Norw

ayExport Credit Agencies


Funding• GIEK does not provide direct loans.• Any acknowledged commercial bank may supply funding.

Fees• No processing/application fee is charged.• Premium is normally charged up-front for medium- and long-term guarantees and monthly

or quarterly for short-term guarantees. Premium is charged on the contract value for short-term guarantees and on principal for medium- and long-term guarantees. Premium based onp.a. may be accepted in project financing and when sharing risks with banks.

Insurance

GIEK’s subsidiary, GIEK Kredittforsikring AS,(GK) handles all applications for covers of short-termexport credits, i.e. all countries. Over 70% of its business is today related to three sectors: fish,metals and paper. Main customer base is small and medium-sized enterprises.

Applications• Lender or supplier may apply for preliminary or final commitment.• On average it takes two weeks to process an application.• GIEK does not have a response charter. Maximum length of time to respond is two months.

Cover• Up to 95% of the contract value can be insured for short-term policies.• Up to 100% of the premium can be capitalized into the contract value.• Third country goods can be covered.• Up to 100% of the interest during construction can be covered.• Short-term cover up to a maximum of 720 days can be provided.• Short – term Insurance is available for multiple sales financed under a single line of credit.• Cover may be provided in foreign currencies.• Investment insurance is only provided by GIEK• Bills covered by GK policies are not freely transferable.• There are no special policies for smaller businesses.• Maximum coverage of export credit insurance (95%)

Funding• GK does not provide direct loans.• GK is established as a limited company under Norwegian law following all regulations as for

credit insurance companies• Commercial banks supply funding.

Fees• No processing/application fee is charged.• Premium for subsequent deliveries is charged monthly or quarterly. Premium for single

transactions is charged up front.

Norway



Project Finance

GIEK does not have a separate project finance department, but it does underwrite project financedeals.

General terms and conditions GIEK requires under project financing:• At least 20% equity.• At least 20% risk sharing by arranging/commercial banks is required.• Recourse to a project sponsor/supplier is determined on a case-by-case basis.• A feasibility study and a bank report are required. Independent reports may be required on

the whole or parts of the project (for instance on environmental effects).

Cover provided for project finance is highly individual. The following pointsmay apply:• Up to 90% of political risks and up to 90% of commercial risks can be covered during

construction.• Local content can be covered in accordance with the OECD-rules..• GIEK may accept a pro anno fee instead of an up front fee in transactions where a

considerable part of the risk is covered by a commercial bank on a pari passu basis.


• There is a claims waiting period during which interest is covered.

Norw



Export Credit Norway (Eksportkreditt Norge AS)new state-owned company for export financing

Hieronymus Heyerdahls gate 1PO. Box 1315 VikaNO-0112 Oslo NORWAYTel: +47 22 31 35 00Website: www.eksportkreditt.no

Institution

Export Credit Norway (Eksportkreditt Norge AS) offers competitive long-term financing tocompanies buying Norwegian capital goods and services. The company was established on July 1, 2012 and is wholly owned by the Norwegian government, represented by the Ministry ofTrade and Industry.

Export Credit Norway supports the Norwegian export industries by providing stable, long-termfinancing. The company has a rich variety of borrowers operating worldwide, ranging fromborrowers buying ships, deep sea technology or drilling equipment to others buying sun panelsand hydropower turbines, cinema chairs and design services from Norwegian exporters.

The company manages the whole lending process, including guidance to the Norwegianexporters as regard to their sales and promotion efforts, loan application processing,documentation, disbursement and loan administration. 29 people from Eksportfinans ASA formthe staff of the new state-owned Export Credit Norway. They bring with them broad experienceand competence within export financing.

Attractive interest rate option

Borrowers can choose between two different types of loans: government-supported loans with afixed interest set by the OECD – so called CIRR (Commercial Interest Reference Rate) loans andCIRR-qualified market loans (floating rate) on commercial terms. Both types of loans are inaccordance with the OECD Arrangement on Officially Supported Export Credits. The Norwegianexporter or foreign buyer must apply for financing before a legally valid and binding contract isentered into.

Long-term financingNorwegian exporters may apply for loan on behalf of their potential buyers. Foreign buyers ofcapital goods or services from Norwegian exporters may also apply for export financing directlythrough Export Credit Norway. The company´s borrowers range from small firms to multibillioncompanies, operating worldwide within a great number of industries.

Norway



Export Credit Norway can offer financing for up to 85 percent of the contract value. Therepayment period is generally up to 8.5 years (for ships up to 12 years, and for renewableenergy projects up to 18 years). All loans must be secured by guarantee(s) from the NorwegianGuarantee Institute for Export Credits (GIEK) and/or acceptable financial institution(s). By year-end, total lending from the company is estimated to US$ 5 billion.

Export Credit Norway is located at Hieronymus Heyerdahls gate no. 1, 6th floor, close to the OsloCity Hall. For more information about the company and our services, please visitwww.exportcredit.no or do not hesitate to contact us.

Norw



EksportfinansContact: Martine Mills Hagen, EVP Director of Funding and LendingTel: (+47) 22 01 22 33E-mail: [email protected]

Ownership structure: 15% Norwegiangovernment, 85% private banks

The company:Eksportfinans was established in 1962 to provide long-term financing for the Norwegian exportsector. The company is owned by a consortium of banks operating in Norway (85 percent) andthe Norwegian Government (15 percent). The company employs more than 50 highly qualifiedprofessionals.

From 1978 to 2011, Eksportfinans managed the Norwegian state-supported export financingscheme under the OECD Consensus arrangement. From July 1, 2012 the state-owned companyExport Credit Norway (Eksportkreditt Norge AS) took over this scheme, and Eksportfinans is forthe time being not granting new loans.

Eksportfinans is still one of the largest financial institutions in Norway and continues to manageits existing portfolio of loans, in addition to its other assets, liabilities and other commitments inthe same manner as earlier,

PO Box 1601 VikaN-0119 OsloNorwayTel: (+47) 22 01 22 01Fax: (+47) 22 01 22 02Website: www.eksportfinans.no

Norway



Export Credit Guarantee Agency of OmanSAOC (ECGA Oman)P.O. Box: 822Muscat, P.C: 100OmanTel: + (968) 24813979 / 2481 3980Fax: + (968) 24812380E-mail: [email protected]: www.ecgaoman.com.om


Institution:

The Export Credit Guarantee Agency of Oman SAOC (ECGA Oman) commenced its export creditinsurance, guarantee and financing activities since November 1991. ECGA operates as nationalexport credit agency of the Sultanate of Oman. It is an independent legal entity that is closelyheld company fully funded by the Government of the Sultanate of Oman. The Agency marked its20th anniversary of its operations in November 2011. The primary objective of ECGA is topromote non-oil exports of Omani produced goods by offering the following services:• Provides export credit insurance against commercial and political risks.• Provides domestic credit insurance against commercial risks.• Assists exporters in availing post shipment financing facilities for credit insured exports.• Issues guarantees to commercial banks to grant pre-shipment financing facilities to

exporters.

Additional Information:

• ECGA Oman is a member of the Credit Alliance which is an international network of creditinsurers as well as other credit management services companies that operate under theumbrella of COFACE of France.

• ECGA Oman is also a member of the Prague Club which operates under the auspices of theBerne Union that is International Union of Credit and Investment Insurers, and the GeneralManager of ECGA Oman Mr. Nasir bin Issa AL-ISMAILY was its previous Chairman of thePrague Club (2009 to November 2011).

• ECGA Oman is a member of the Aman Union which is an association of ECAs of the Arab andIslamic countries.

• ECGA Oman is also a member of ADFIAP that is Association of Development FinancingInstitutions in Asia and the Pacific.

Oman



Pakistan Re-Insurance CompanyPRC Towers32-A Lalazar DriveMoulviTamizuddin Khan RoadPO Box 4777Karachi, PakistanTel: (+92) 21 920 2908-14Fax: (+92) 21 920 2921/2Website: www.pakre.org.pk

Executive director: Ayaz Hussain

History

Pakistan Re-Insurance Company Limited (PRCL) was first established in 1952 as PakistanInsurance Corporation (PIC) under the PIC Act 1952 in order to support local insurance industry.Since then it has managed National Insurance Fund (NIF), National Coinsurance Scheme (NCS),War Risks Insurance (WRI) and Export Credit Guarantee Scheme (ECGS) providing help indifference forms to the insurance as well as business community.

In the year 2000, the President of Islamic Republic of Pakistan was pleased to make andpromulgate the Insurance Ordinance No.XXXIX of 2000 and Pakistan Insurance Corporation(Reorganization) Ordinance No.XXXVI of 2000 to provide for conversion of Pakistan InsuranceCorporation into

Pakistan Reinsurance Company Limited. PRCL was incorporated as a public limited company on30 March, 2000 with the name of Pakistan Reinsurance Company Limited.

The company was formed with a view to take over all assets and liabilities of Pakistan InsuranceCorporation (PIC). Accordingly, it has taken over assets and liabilities of PIC on 15 February 2001in pursuance of Ministry of Commerce SRO No.98(1)/2000 dated 14-2-2001 which was issuedunder President Ordinance No.XXXVI of 2000.

Business typeThe core business area being re-insurance, PRCL operates in the following areas of all classes ofinsurance business.

ServicesThe main area of services is provision of treaty, facultative as well as fronting support to theinsurance industry. A new sector of risk management is being developed in order to provide riskmanagement related services to the insurance industry in specific and business community ingeneral.

PakistanExport Credit Agencies


Philippine Export-Import Credit Agency(Trade and Investment DevelopmentCorporation of the Philippines)17th Floor, Citibank Tower, Citibank PlazaValero St., Makati City, 1226 PhilippinesTrunkline: (632) 885-4700Telefax: (632) 848-7307E-mail: [email protected]

Contact:Ms. Josefina R. Ricafrente, Asst. Vice-PresidentCorporate Planning & Communications Department

Ownership structure: 100% GOCC

Function:1. To guarantee foreign loans for developmental purposes.2. To guarantee international and Philippine banks and financial institutions against losses from

loans granted to exporters or contractors;3. To provide insurance cover, credits and other services to facilitate the export of Philippine

goods;4. To enter into contract of re-insurance with any recognized export credit agency or insurance

organization;5. To provide technical assistance in the preparation, financing, execution and development or

expansion programmes, including the formulation of specific project proposals.

History

TIDCORP was established in 1977 as the then Philippine Export and Foreign Loan GuaranteeCorporation (Philguarantee). The agency was dedicated to the development of the export sectorby providing a wide array of guarantee, insurance, credit and technical assistance services toPhilippine exporters pursuant to its charter, which is Presidential Decree No. 1080 as amended,with functions expanded by Republic Act No. 8494 on February 12, 1998.

On March 18, 2002, under Executive Order 85, TIDCORP was designated as the PhilippineExport-Import Credit Agency or PhilEXIM.

Based on Sec. 9 of Pres. Decree No. 1080 and the Department of Justice Opinion No. 69 S 2002dated August 26, 2002, all guarantee obligations of PhilEXIM carry the full faith and credit of theRepublic of the Philippines. Bangko Sentral ng Pilipinas (Central Bank of the Philippines) CircularNo. 280-01 dated July 1, 2001 states that loans to the extent guaranteed by PhilEXIM carry 0%risk weight. As such, the capital adequacy ratio of the bank will not be impaired. The PhilEXIMguarantee can help in mitigating creditor bank’s risk and enhances the bank’s collateral position.

Philipp

ines



Guarantees

Guarantee Programme for SMEsGuarantees on short term loans of up to P20 million or its equivalent in US dollars to direct andindirect exporters, firms involved in priority projects of the government and import substitutionindustries.

Guarantee Programme for Large AccountsGuarantees on loans to direct and indirect exporters, firms involved in priority projects of theNational Government and import substitution industries and guarantees on investments.Wholesale Guarantee Programme for SMEs

Guarantees on existing loan portfolio of financial institutions to direct and indirect SME exporterswith amounts of at least P50 million but not to exceed P200 million.

Direct lending

Short-term Direct Lending Programme for SMEsShort-term loans of up to P20 million to direct and indirect exporters, firms involved in priorityprojects of the National Government and import substitution industries.

Medium- to Long-term Direct Lending Programme for SMEsMedium and long term loans of up to P50 million to direct and indirect exporters and firmsinvolved in priority projects of the National Government and import substitution industries.

Wholesale Direct Lending Programme for SMEsShort term loan of up to P50 million to Financial Institutions and Exporters Organizations for on-lending to the SME Export Sector and a soft loan facility for capacity building of ExportersOrganizations.

SME Unified Lending Opportunities for National Growth (SULONG)Lending programme by government financial institutions (GFIs) designed to give small andmedium enterprises (SMEs) greater access to short- and long-term funds up to P5.0 million forthe purchase of equipment, lot and inventories as well as building construction.

Credit insurance programme

Export Credit Insurance (ECI)Insurance coverage to exporters against the risk of non-payment by foreign buyers of exportshipments on credit arising from political or commercial risks.

PhilippinesExport Credit Agencies


Export Credit Insurance Corporation (KUKE S.A.)Sienna Street, 3900-121 WarszawaPolandTel: (+48) 22 313 0110

(+48) 22 356 8300Fax: (+48) 22 313 0120E-mail: [email protected]: www.kuke.com.pl

Contact: Mrs. Alicja Grabka – Director, International Relations [email protected]

Ownership structure:Majority sovereign owned, Ministry of Finance 87.85%, the State Economy Bank 12.15%

Function:Provides guarantees and short-, medium- and long-term insurance cover.

Institution

Export Credit Insurance Corporation (KUKE S.A.) conducts insurance and reinsurance activitiesagainst commercial and non-marketable risk in relation to export transactions carried out in short-, medium- and long-term credit. Insurance of non-marketable risk of short term business as wellas insurance of medium/long-term business is supported by the State Treasury. KUKE S.A. alsooffers short-term domestic credit insurance and issues both export and domestic guarantees.

KUKE's S.A. activities involve:• Organizing and undertaking insurance operations including cover for credit and other

financial losses.• Organizing and issuing export contract insurance backed by the State Treasury.• Organizing and conducting reinsurance activities.

The company is bound by OECD Arrangement on Officially Supported Export Credits. Lending isprovided by commercial banks. Exporters have access to the DOKE programme (interest make-up scheme subject to fixed CIRR interest rate administered by the State Economy Bank).

The mission of KUKE S.A. is to create conditions favourable for promoting Polish export on creditterms and strengthening the position of Polish exporters as well as their products and serviceson the international market.

Poland



Guarantees

KUKE S.A. provides guarantees for banks financing medium/long-term export business under thebuyer credit scheme and guarantees in relation to L/Cs financing short-term export creditinsurance against non-marketable risk.

For medium/long term business KUKE S.A. provides cover for up to 100% of the credit value plusinterests – under Buyer Credit insurance scheme against political and commercial risk. Theguarantees are supported by the State Treasury. Within this scheme KUKE S.A. provides alsocover for leasing transactions with repayment term of two years and more. KUKE S.A. offers alsoadditional cover for banks and financial institutions purchasing export receivables due to Polishexporters from foreign debtors under delivery of goods and/or services supplied on credit termsof two years and more.

Application• Lender may apply for a letter of interest, preliminary commitment or final commitment.• The guarantee is issued to the bank financing the export credit transaction under Buyer

Credit or to the financial institution providing financial leasing/purchasing export receivables.• On average it takes between three and four weeks to process an application.

Cover• Cover provided for national content (including EU content) is up to 50%. Cover for local costs

is up to the amount of down-payment. Cover for third country content is up to 50% of thecontract value, although this can increase to 90% for construction works, for example.

• Pre-commissioning interest can be capitalized, provided this is in accordance with the OECDArrangement on Officially Supported Export Credits.

• Up to 100% of 85% of the contract value can be guaranteed.• Medium/long-term cover is provided. It comprises credit with repayment terms of two years

and more.• Policies cover commercial and political risk after delivery of goods or performance of

services.• Waiting period for indemnity payment is three months.• Cover can be provided in all leading OECD currencies.• Working capital guarantees are not offered.• Interbank lines of credit are supported on a case-by-case basis.• Insurance of Polish Investments abroad are offered since 2001.• Bills covered by guarantee policies cannot be freely transferred.• Access to the DOKE programme (interest make-up scheme subject to fixed CIRR interest rate

administrated by the State Economy Bank).• Guarantees are available for multiple sales financed under a single line of credit provided by

a bank to foreign banks or buyers.

maximum guarantee of export value (buyer credit)buyers political commercialprivate 100% 100%public 100% 0sovereign 100% 0

PolandExport Credit Agencies


maximum guarantee of export value (supplier credit)buyers political commercialprivate 100% 100%public 100% 0sovereign 100% 0

Interest• Official interest rate support CIRR, based on OECD Arrangement, is offered through the DOKE

programme by the State Economy Bank.• Guarantees can be provided for floating-interest rate loans.• Interest can be guaranteed.• Delay interest (the interest cost incurred between non-receipt of payment under the loan and

payout under the export credit agency) cannot be guaranteed.• The usual delay/claim period from default to payout is three months.

Funding• Commercial banks / financial institutions can supply funding.

Fees• No processing/application fee is charged. 100 EUR fee is charged for amendments to

insurance agreements.• The premium charged up front.• The premium is charged on the credit amount, the contract value and the total exposure for

pre-credit risks cover.

For short-term activity KUKE S.A. provides guarantees issuing in relation to L/Cs which areopened by banks whose registered office is located in countries considered to be covered by theCorporation insurance against non-marketable risk.

Application• Bank whose registered office is located in countries considered to be covered by the

Corporation.

Cover• L/C confirmation by beneficiaries of guarantees.• Receivables with deferred payment term no longer than 719 days for L/Cs discounted by

beneficiary of a guarantee who has purchased receivables under L/C provisions.• Receivables with deferred payment term no longer than 719 days resulted from L/C post-

financed by the bank that after refinancing have been paid to an exporter under L/Cprovisions or upon the separate agreement with the L/C opening bank.

• Framework agreements concluded with banks will include single guarantees.

Contract bondsBonds help acquire orders and, in many cases, are a precondition for successful conclusion of acontract. For all entrepreneurs planning to enter tenders and conclude contracts for the deliveryof goods or services KUKE S.A. offers a wide range of domestic and export contract bonds:• bid bonds• performance bonds• warranty bonds• advance payment bonds

Poland



Application:Polish entrepreneurs conducting business activities for no less than 3 years.

CoverBonds are the simplest and most reliable form of securing any future claims of the beneficiaryarising from the contract.

FeesFees for issuing bonds are negotiated individually and are mainly determined by the type ofcollaterals provided by the enterpreneur. Fees vary from 1 % to 4 % of the bond value on anannual basis.

Insurance products

Short-term export credit insurance against non-marketable risk

KUKE S.A. offers non-marketable risk insurance covering a selected group of high-risk countries.Non-marketable risk cover is provided also with respect to export receivables assigned to thefactor.

The insurance covers commercial risk, political risk as well as force majeure and is supported bythe State Treasury. Subject of the insurance are receivables resulting from deliveries of domesticgoods and/or services performed under credit terms of less than 2 years.

Application• Domestic businesses performing export contracts, banks and financial institutions

Cover• Up to 95% of the eligible contract value can be insured.• Insurance provided with the State Treasury backing.

Fees• The premium is paid monthly on the basis of reported turnover and depends on a country,

payment term and collateral provided.

Combined short-term export and/or domestic credit insuranceInsurance allows clients to comprehensively manage their receivables portfolio (both export anddomestic) under a single insurance policy. It covers export receivables due to delivery of goodsand/or services supplied on credit terms below 2 years and receivables from a domestic buyerfor the delivery of goods and/or services supplied on short-term credit below 1 year.

Application• Domestic businesses fulfilling both export and domestic contracts.

Cover• The scope of insurance coverage encompasses commercial risk (bankruptcy and default),

and in the case of export receivables also political risk.



Fees• The premium is charged monthly or quarterly, based on the turnover reported to KUKE S.A.

by the insured

Flexible insurance conditions to be adjusted to the customers demand.

Europolicy – short-term export / domestic credit insurance for small business• Product tailored specially for small business.

Application• Domestic businesses fulfilling domestic / export contracts

Cover• The scope of insurance coverage encompasses commercial risk (bankruptcy and default).• Maximum credit term – 180 days.• Private debtors from 33 European countries, including Poland.• Up to 85% of the receivables can be insured.

Fees• The premium is charged based on a fixed rates table and varies depending on the value of

credit limit(s) in question. The premium is charged once – when signing the insuranceagreement.

Combined insurance of short-term export or/and domestic credit based onthe balance of outstanding receivablesProduct facilitates insurance coverage of receivables outstanding at the end of each month.Unlike in a typical turnover policy, no turnover declarations are required – only a list of balancesfor respective debtors. Insurance covers export receivables for the delivery of goods and/orservices supplied on credit terms below 2 years and receivables from a domestic buyer for thedelivery of goods and/or services on short-term credit below 1 year.

Application• Domestic businesses fulfilling domestic / export contracts

Cover• The scope of insurance coverage encompasses commercial risk (bankruptcy and default),

and in the case of export receivables also political risk.

Fees• The premium is charged monthly on the average balance of outstanding receivables.

Flexible insurance conditions to be adjusted to the customers demand.

Insurance of short-term domestic / export receivables assigned to the factorTaking into account the significant role of factoring as an additional source of obtaining externalfinancing by entrepreneurs, KUKE S.A. introduced a product supplementing an offer addressed tobanks and financial institutions. Insurance covers receivables, purchased by the factor, due fromforeign buyers for the delivery of goods and/or services on a short-term credit below 2 years.Following the growing demand on the factoring market in Poland, insurance of domesticreceivables due for the delivery of goods and/or services supplied on credit terms less than 1

Poland



year has been also introduced. Receivables shall be purchased before the date of payment andnot later than 30 days before issuing an invoice.

Application• Banks and financial institutions.

Cover• Cover is granted against commercial risk (bankruptcy and default of over 90 days), and in

case of export receivables also against political or non-marketable risk (the latter is offeredexclusively with the State Treasury backing).

Fees• The premium is charged monthly, based on the turnover reported to KUKE S.A. by the

insured.

Insurance of financial losses resulting from the exchange risk during theperiod of deferred payment in export transactions.The product enables the exporter to reduce the effects of unfavorable changes in the exchangerate of EUR in PLN on the profitability of export contracts fulfilled by the exporter. Within theframework of this product KUKE S.A. covers losses of an exporter performing export transactionsin EUR executed on credit terms of up to 60 days, resulting from drop in the exchange rate ofEUR in PLN by more than 2% and less than 15%.

Application• Domestic businesses performing export contracts.

Cover• Insurance covers losses of an exporter performing export transactions in EUR on credit terms

of up to 60 days, resulting from drop in the exchange rate of EUR in PLN by more than 2%and less than 15%.

Fees• The premium is calculated based on invoices submitted by the insured, according to a

premium rate which is set depending on the period of a credit extended by the exporter:– up to 14 days – 0,30%,– from 15 to 30 days – 0,50%,– from 31 to 60 days – 1,10%.

Medium/long-term credit insurance under supplier creditThis is supported by the State Treasury against both political and commercial risk. For exportsfinanced under supplier credit scheme, KUKE S.A. provides cover for credit risk and preshipmentrisk.

Up to 100% of the credit value is covered against political and commercial risks.

Medium/long-term business is underwritten on an individual basis.

Application• Exporter may apply for a letter of interest, preliminary commitment or final commitment.• The insurance policy is issued on behalf of the exporter.



Cover• Up to 100% of the eligible contract value can be covered.• Assignment from the insurance policy to the bank is permitted.• Policies cover commercial and political risk during and after delivery or performance of

services.• Cover can be provided in foreign currencies.• Bills covered by insurance cannot be freely transferred.• Waiting period for indemnity is three months

Interest• Official interest rate support CIRR, based on OECD Arrangement, is offered through DOKE

programme.• Insurance can be provided for fixed- and floating-interest rates.


Fees• The premium is charged up front.

All risks supported by the State Treasury are recorded under a separate system. The budget lawspecifies the limit up to which such export contracts can be insured in a given year, as well aspayments from the State budget projected for a given year with regard to claims paid in respectwith such a business.

Insurance of costs related to market researchThis facility helps entrepreneurs to maintain financial liquidity while undertaking efforts aimed atconcluding export contracts with foreign partners and to secure themselves against the risk offailure. The big advantage of this product is a possibility to receive the claims in advance. Thisoptions is open to entrepreneurs whose annual net income from sales does not exceed thePolish Zloty equivalent of 1 million EUR before his activity on the foreign markets brings the realeffects reflected in sales incomes.

Application• Domestic businesses (conducting business for at least 3 years, with annual revenues of

maximum 50 million EUR), planning to commence or develop the export of domestic goodsor services.

Cover• Costs and expenses incurred in connection with undertaking efforts aimed at entering foreign

markets against the risk of failure to conclude export contracts with customers from thosemarkets to the value sufficient to cover the costs incurred, for reasons beyond entrepreneur'scontrol.

Poland



Fees• The insurance premium depends on:

– the size of the insured budget for costs incurred in seeking new markets allocated for therespective year,

– choice of option to receive advance payments against future claims at the beginning ofthe annual accounting period (available to companies with annual revenues of maximum1 million EUR.

Insurance of direct investment abroadOnly a direct investment abroad can be covered. Insurance covers value of the direct investmentmade by a Polish entrepreneur outside of Poland and the return due to the investor from theinvestment. The maximum term of insurance is 15 years, the minimum – three years.

Application• Domestic businesses conducting manufacturing, service or trade activities, planning new

investments abroad in the form of contribution in cash, in kind or intangible assets or legalrights, provided that this leads to a new company being created abroad or acquiring effectiveinfluence over an already existing company abroad.

Cover• Up to 90% of the insurance sum is covered for political risk only. Political risks are:• Expropriation, including nationalisation, confiscation, restriction of property rights• War, uprising, revolution, social unrest, terrorist acts, sabotage, coup d'etat outside of the

borders of Poland• Government authorities of the host country cancellation of contract or withdrawal from

contract• Announcement of general payment moratorium• Inability to echange the amounts deposited in local currency in solvent bank for the

convertible currency or the inability or delay in making transfer, which resulted from legalacts or administrative decisions made by authorities in the host country.

Fees• The premium is charged annually on the insured sum (investment value plus return). The

claim waiting period of 90 days.


ECA alliances/agreements• KUKE S.A. has concluded cooperation agreements with 27 agencies. These agreements aim

to develop cooperation in providing insurance cover to exporters from Poland and respectivecountries, who want to work together on projects executed in third countries.

• Agreements governing medium- and long-term reciprocal reinsurance obligations have beensigned with twelve ECAs: EH Germany, COFACE, CESCE, SACE, ATRADIUS, EDC, OeKB,ONDD, ERG, EGAP, EKF, KEIC.



Companhia de Seguro de Créditos (COSEC)Avenida da Republica, 581069-057 Lisboa, PortugalTel.: (+351) 21 791 3700Fax: (+351) 21 791 3720E-mail: [email protected]: www.cosec.pt


Function:Provides short and medium-long term insurance

Institution

Companhia de Seguro de Créditos (COSEC) provides insurance cover. Policies cover up to 99%for political risks and up to 95% for commercial risks. The company is bound by OECDConsensus. It does not have a project finance department. Commercial banks provide the sourcefor lending.

Insurance


commitment.

Cover• Up to 99% of 85% the eligible contract value can be insured.• The premium can be capitalized into the loan value.• Interest during construction can be covered. The amount depends on the term of credit.• Financing of third country goods is possible.• Local content can be covered according to OECD Consensus rules.• Insurance can be available for multiple sales financed under a single line of credit provided

by a bank to foreign banks or buyers.• Cover can be provided in foreign currencies.• Bills covered by insurance policies may be freely transferred, depending on policy terms.• Residual risk must remain with the insured.• Political risks are covered for the account of the state, (with the exception of short term cover

for OECD countries).

PortugalExport Credit Agencies


Maximum coverage of export credit insurance (%)political risks commercial risks

Short-term 98 95Medium-term 99 95Long-term 99 95

Interest• Insurance can be provided for fixed-interest rate and floating-interest rate loans.


Fees• A processing/offer fee is charged.• Premia are charged up-front and on the financed/credit amount.• Whole turnover policies:

– These cover commercial risks on short-term exports of goods.– The exporter must undertake to insure all his sales which are on credit terms, except

those subject to contract, by means of confirmed documentary credit.– When political and extraordinary risks are relevant, they may be covered together with

commercial risks in whole turnover policies, by means of an endorsement to the policy.• Individual policies for supplier and buyers credits:

– These cover commercial risks or political and extraordinary risks, usually in the medium-to long-terms and refer to equipment goods.

• Bond insurance policies:– These guarantee to the beneficiary the reimbursement of customs duties or other legal

duties, deferred interest and charges which the debtor has to pay.– Bond insurance policies are also provided for construction bonds for tenders, advance

payments and performance of contracts.• Foreign investment policies:

– These provide insurance for risks faced by Portuguese investments in foreign countries.– The risks covered are requisition, confiscation, expropriation, politically motivated acts of

violence, general moratoria and suspensions of or difficulties in the transfer of currency.• Other cover offered by COSEC:

– An exchange rate policy and an interest rate compensation policy are also available.These cover against fluctuations in the exchange rate relative to contracts payable in aforeign currency and to compensate the difference between market interest rates andthe cost of financing respectively. These are also subject to prior guarantee by the state.


Commercial and extraordinary risks• The granting of commercial risk cover depends on the end destination and the financial

situation of the importer who may also be required to submit additional guarantees oncecreditworthiness is ascertained.

• The granting of extraordinary risks cover is decided by the Ministry of Finance after theadvice of the CGFEI (Council of Financial Guarantees to Export and Investment), on the basisof a country rating schedule and an analysis of the political and economic situation in eachcountry.

Portug

alExport Credit Agencies


Political and extraordinary risks• Political and extraordinary risks are usually covered from 95% to 99%. The benefits of all

policies can be assigned by the insured to a third party, with the authorization of COSEC andprior notification to other contractual parties.

PortugalExport Credit Agencies


EximBank of Romania15, Splaiul Independentei050092 Bucharest 5RomaniaWebsite: www.eximbank.ro

Ownership Structure:95.37 % sovereign; 4.63 % private

Function:Provides short, medium and long-term guarantees, insurance, and financing, consulting services,country and sector risk analysis, commercial and credit information on business partners.

Institution

EximBank is a specialized institution, carrying out activities both for State’s account, as its agent,according to the economic policy of the Government and for its own account. Activities deployedfor State’s account are approved and fulfilled under the coordination of the Inter-ministerialCommittee for Financing, Guarantees and Insurance.

EximBank is a member of the Romanian Banking Association, the Bucharest Chamber ofCommerce and Industry, of ANEIR – National Association of Romania’s Exporters and Importersand of Romanian Export Council. EximBank is a member of Prague Club, which incorporatesexport credit insurance companies from across the globe and also of Credit Alliance, BankingAssociation for Central and Eastern Europe – BACEE (member) IFA – International ForfeitingAssociation, European Council Working Group on Export Credits (member), OECD Working Groupon Export Credits and Export Credit Guarantees – ECG as ad-hoc observer, European Associationof Public Banks (EAPB), Global Network of Exim Banks and Development Finance Institutions (G-NEXID)and Swift (accession through one share).

EximBank has relationships with more than 240 corresponding banks, export credit insuranceagencies and other entities involved in similar activities, all over the world.

Insurance

1. Short term export credit insurance policies are issued by EximBank onbehalf of the Romanian State, covering non-marketable risks:• Revolving credit limits; covered percentage: 85%; waiting period: 5 months.• Risks covered: commercial (insolvency, protracted default) and/or political; post-shipment

and pre-shipment.• Other services included: risk monitoring, collection services, commercial information.

Roman

iaExport Credit Agencies


2. Medium and long term export credit insurance policies are issued byEximBank on behalf of the Romanian State, complying with the Europeanlegislation and with the OECD Arrangement:A. Insurance policy against commercial and political risks, for medium and long termtransactions (supplier credit):• Eligible for Romanian Exporters.• Covered percentage: 85% of the export contract value.• Risks covered: commercial, political, force majeure; both for pre- and post- shipment.• Covers the export contracts for capital goods or civil works, stipulating an advance payment

of minimum15 per cent, and the reimbursement in semi-annual equal installments, over aperiod according to the OECD Arrangement.

B. Buyer Credit insurance policy• Eligible to banks.• The lending bank is protected against non-payment due to commercial, political, force

majeure risks.• The maximum amount that can be made available under the loan is 85 per cent of the export

contract value.• A minimum of 15 per cent of the commercial contract value must be paid directly to the

exporter by the buyer before the loan starts to be repaid.• Covers all undisputed debts, credit rates and interests during the credit period.• The period for repayment of the loan must be at least two years.

C. Insurance policy for Romanian equity investments abroad• Covered percentage: maximum 90% of the investment value.• Duration of the Insurance Policy: medium & long (1 to 15 years)• Risks covered: political

EximBank provides to Romanian legal entities (SMEs, companies other than SMEs and publicadministration institutions) guarantee products both for State’s account and for bank’s accountdirected at the following applications: to develop infrastructure, public utilities, regional upgradeand R&D growth, environmental protection, staff employment and training, SME-s support anddevelopment as well as international transactions uphold.

Specific products and services

Country risk analysis• Identifying economic, social, political, internal and external elements that could generate a

country risk and lead to financial loss.• The 74 partner countries of interest for Romanian exporters, classified in different short and

medium term risk, based on EximBank’s methodology.

Sector and product risk analysis• Studies for certain industrial sectors, in Romania.

Macroeconomic analysis and forecast• Quarterly analysis on the evolution of Romanian industry.

Romania



Commercial information reports on Romanian and foreign companies:• Specific to EximBank, this product has gained recognition and has been rated by the

members of the Berne Union. It also offers comprehensive information about companies allover the world, their financial status, as well as available risk ratings and recommendations.

Financing

EximBank provides flexible financing products for supporting and encouraging the developmentof the activities undertaken by Romanian exporters, SMEs, public administration authorities andother legal entities.

Financing is granted as investment loans and credits for current business.

While deploying financing activities for State’s account, EximBank also grants credits including aState Aid constituent. Moreover, EximBank applies the interest rate stabilization mechanism incompliance with provisions of the OECD Agreement for export credits official support.

Roman



EXIAR – Export Insurance Agency of Russia3, 1st Zachatievsky Lane, Bldg. 1Moscow, 119034, RussiaTel: 7 (495) 783 11 88Fax: 7 (495) 783 11 22Website: www.exiar.ru

Senior management:Peter Fradkov, Chairman of the Management Board & Chief Executive OfficerMikhail Karyakin, First Deputy CEO, Member of the Board

Contact personAlexei TyupanovHead of International Business [email protected]: + 7 (495) 783 11 88

Founded: 2011

Ownership structure:Sole shareholder – state corporation The Bank for Development and Foreign EconomicAffairs (Vnesheconombank)

Institution

EXIAR is the national export credit agency of Russia.

EXIAR mandate is to support Russian exports and investment abroad.

EXIAR covers short-, medium- and long-term risks. The charter capital makes up RUB30 billion(ca. $1 billion).

The board of directors consists of senior executives of the Russian Government and independentdirectors.

The agency’s activities are backed by the Russian Federation in line with the budget legislation.

Major Facilities:• Export Credit Insurance• Investment Insurance

Russian FederationExport Credit Agencies


AOFI – Export Credit and Insurance Agencyof the Republic of Serbia121 Bulevar Zorana Dindica11 000 BelgradeSerbiaTel: + 381 11 2520 770

+ 381 11 2520 750Fax: +381 11 311 80 16Email: [email protected]: www.aofi.rs

Senior management: Milanko Bogosavljevic, CEODanijela Piljak, Executive manager,Dimitrije Stamenovic, Executive manager

Contact person: Biljana Stankovic,Tel: + 381 11 2205 770

Founded: 2005.

Ownership: state-owned.

Function:The main objective of AOFI (Agencija za Osiguranje i Finansiranje Izvoza Republike Srbije) is tosupport sustainable economic growth by catalyzing, facilitating and expanding cross border tradeand in particular viable export activity. This will consequently contribute to an increase in the levelof exports needed to relieve the economy from its dependency on aid.

Institution and Capital

The law on AOFI was decreed by act of Parliament on 18.07.2005.The Founder of AOFI isRepublic of Serbia. AOFI’s initial capital was a25 million.

Facilities

Credit Insurance Facility (CIF)AOFI is offering export credit insurance to the Serbian market, by entering into partnership with alarge European credit insurer. AOFI’s re-insurers are re-insuring AOFI’s portfolio at agreedportions and will expect that AOFI takes a portion of the risk on its balance sheet. A portion ofAOFI’s capital is allocated as a backing of the obligation assumed under the insurance policies.The use of funds to support Export Credit Insurance is a subject to a conservative capitaladequacy formula.

According to AOFI managing board decision AOFI is also offering domestic credit insurance forexporters.

Serbia



Working Capital Facility (WCF)The WCF is a revolving line of credit to provide working capital loans to Serbian exportingEnterprises that have specific and signed export contracts. The AOFI funds may be combinedwith Local Bank (Participating Financial Institution, or PFI) funds and on-lent through eligible localbanks to Serbian exporters but AOFI is authorized to fund 100% of a working capital loan madethrough a PFI. AOFI and/or the local bank may identify a foreign bank that is willing to lend funds.

Exporter Performance Insurance and Guarantees Facility (EPIF)It is currently problematic for Serbian companies to tender for major construction and capitalgoods supply contracts abroad, because international banks acceptable to these buyers/investorswill not take the risk of non-payment by the Enterprise, or a local Serbian bank, following a call ofa relevant bond. The Exporter Performance Insurance Facility (EPIF) will allow Serbian companiesto tender for such large export contracts by giving security to bond giving banks. This security isprovided by placing certain AOFI funds on trust, in an offshore bank account, available toreimburse commercial insurance companies that will guarantee the bond givers. One or severalcommercial insurance syndicates are identified by AOFI as willing to participate in this scheme.Such syndicates are willing to guarantee performance bonds for a value of up to four times theamount of cash held on trust.

Factoring Facility (FF)In circumstances where the Enterprise is offering extended terms to its buyers, AOFI enters intoan Export Receivables Agreement and will offer Advance to the Enterprise secured over theexport receivables. Such advances will not exceed 90% of the value of all receivables nominatedin the Export Receivables Agreement.

Import Credit Insurance Facility (ICIF)This facility is in two parts: 1) medium term import insurance and; 2) limited short-term importinsurance.

Medium Term Import Credit InsuranceThis facility addresses the serious problem of obsolete machinery of Serbian exporters, due totheir inability to mobilize funds for renewal and upgrade of their capital equipment during the1990`s decade of isolation.

Limited Short Term Import Credit InsuranceAOFI has also been given the authority to provide insurance or guarantees to foreign suppliers ofessential inputs and raw materials to Serbian companies, which would allow these suppliers toprovide credit terms matching the credit terms that the Enterprise must give to its buyers and theproduction cycle. This facility would be offered in favor of a foreign supplier, bank or creditinsurance agency based on a risk sharing basis between AOFI and the foreign supplier, financieror credit agency.

Consulting Services Facility (CSF)Because AOFI has a level of expertise in commercial trade transactions and has a significantdatabase of enterprises and access to credit information, AOFI is able to provide consultancyservices to Serbian enterprises and international enterprises for appropriate commercialopportunities. In such cases where Serbian enterprises are engaged in a commercial agreementrequiring complicated financial assistance, AOFI will provide such consulting services, eitherdirectly or through its network of international agencies and partners. Consultancy services will

SerbiaExport Credit Agencies


be offered in three main areas: 1) contract negotiations; 2) credit information and; 3) investmentand trade advisory.

Credit ReportsAOFI has introduced a service for domestic and foreign companies and institutions that arelooking for overall business information for potential business partners or buyers of their goods.Credit report simplifies and enables shaping of right business decision.

In 2007 AOFI established with OeKB Sudoesteurope the joint company OeKB Financial Servicesfor preparation of credit reports on Serbian companies and debt collection.

Application

Lender and supplier may apply for an offer or final commitment.

Cooperation with international institutionsAOFI became a member of Prague Club in December 2006. Prague Club is a part of BerneUnion. Membership in this institution enables standardization of credit insurance terms byaccepting joint criteria and standards as well as cooperation with foreign institutions on theirmarkets or other foreign markets.

AOFI is a member of Factors Chain International since January 2008.

In April 2008 AOFI joined Banking Association of Central and Eastern Europe.

In 2009 AOFI signed cooperation documents with three export credit agencies, from Bulgaria,Slovak Republic and Belarus.

During a relatively short period AOFI signed cooperation agreements and memoranda onunderstanding with the numerous institutions such as: MBDP, SID, IGA, SACE, UZBEKINVEST,EXIMBANK Ro, SID, MBDP, IGA BiH, SACE, Turk EXIM Bank, OeKB, FINNVERA, SLOVAK EXIM,HBOR, UZBEKINVEST, BAEZ, and EXIMBANK RO, ECIO

Serbia



Export-Import Bank of the Slovak Republic(EXIMBANKA SR)Export-Import Bank of the Slovak Republic (EXIMBANKA SR)Grösslingová 1813 50 BratislavaSlovak RepublicWebsite: www.eximbanka.sk

Contacts:Mario Schrenkel, Chief Executive OfficerTel: (+421) 2 59398 131Fax: (+421) 2 52931 624Email: [email protected]

Denisa Petríková, Head of International Relations DepartmentTel: (+421) 2 59398 318Fax: (+421) 2 59398 166Email: [email protected]


Function:Provides financing of export credits and short, medium and long-term credit insurance

Institution

Export-Import Bank of the Slovak Republic is the official Export Credit Agency of Slovakia by theby the Act No 80/1997 Coll. as amended. Its main goal is to increase the competitiveness ofSlovak exporters at the international market via providing a wide range of export credit andinvestment insurance, insurance and issuing of bonds and financing services..

Main insurance products available are short-term supplier credit and medium and long-termsupplier and buyer credit. Policies cover 85-90% of short-term political risks and 80-90% ofshort-term commercial risks. Pursuant to the Act, the State is unconditionally and irrevocablyliable for the commitments of EXIMBANKA SR. The bank follows the OECD Arrangement andother OECD and EU rules.

Slovak RepublicExport Credit Agencies


Insurance

EXIMBANKA SR services include cover against commercial and political risk for individualcontracts with a credit period longer than 12 months. Such cover is mainly provided for capitalgoods and construction projects.

Short-term marketable risk up to 1 year covering mainly revolving exports is reinsured on theprivate market.


commitment.• The average response time in short-term insurance is about 2 days.

Non-marketable risk insurance provides following facilities:• Short-term export credits insurance against commercial risks that covers export contracts

due within one year against official insolvency and protracted default on payment.Percentage of cover is up to 90% of contract value.

• Short-term export credits insurance against political risks that covers export contracts withpayment term up to 2 years against payment difficulties caused by political events in thedebtor’s country (failure to transfer payments to the Slovak Republic, administrativemeasures, natural disasters etc.) Percentage of cover is up to 90% of contract value.

• Insurance of medium and long-term supplier’s credits against political and commercial risksthat covers the credits with the maturity period longer than 2 years. Percentage of cover isup to 90% of insured amount.

• Insurance of buyer’s credits against political and commercial risks (for the credits with thematurity up to 2 years or exceeding 2 years). The minimum amount of the insured’s self-retention is at least 5%, while not more than half can be transferred to the exporter.

• Insurance of pre-credit production risk that covers manufacture risk that may arise prior tothe consignment of goods. The insurance covers losses incurred in connection with thecancellation or suspension of the export contract due to the commercial or political risks inthe period between conclusion of the export contract and delivery of goods. Percentage ofcover is up to 85% of contract value.

• Insurance of foreign investments of Slovak legal entities that covers preclusion of paymenttransfer, dispossession and political violent acts. Percentage of cover is up to 90% ofinvestment value.

• Insurance of a loan relating to the foreign investments of Slovak legal persons against risk of loannon-repayment that covers insurance of political and other non-commercial risks (preclusion ofconversion and/or transfer, dispossession, political acts of violence, breach of contractualobligations) and commercial risks (insolvency and protracted default). The investment relatedloan is usually a long-term loan with the maturity longer than 3 years. Provision of insurance ofthe investment-related loan is conditional to partial financing of the investment from theinvestor’s own resources, usually in amount of 15%-40% of the investment value. Self-retentionof the insured’s share represents at least 2.5% of the insured amount.

• Insurance of pre-export financing against risk of inability to repay loan that covers risk ofpecuniary injury suffered by bank due to impossibility to enforce the Slovakexporter/producer to repay the loan for funding production for exports due to failure to meetthe export contract. As a rule, due term of credit is not longer than four years. Percentage ofcover is up to 80% of contract value.

Slovak Rep

ublic



• Insurance of a confirmed irrevocable letter of credit that covers risk of pecuniary injuryresulting from partial or total default on payment in compliance with the L/C terms. Validity ofL/C is not longer than 24 months and maturity of the L/C is not longer than 12 months.Percentage of cover is up to 85% of insured amount.

• Insurance of the bank guarantee issued in connection with the conditions of acquiring orperforming the export contract, which covers both unfair and fair calling of the guarantee.Percentage of cover is up to 95% of insured amount.

According to the OECD Arrangement the insurance of credits with the repayment terms of twoyears and more has to meet some regulated conditions.• The usual waiting period for medium and long-term risks is three months.

Fees• No processing/application fee is charged.• Premium for short-term revolving cover is charged monthly on exports declared. Premium for

medium and long-term cover is usually charged upfront.

Funding

Refinancing loans• Banking products offered by EXIMBANKA SR are customized to specific clients� needs. The

aim is to facilitate the entrepreneurs� access to financing for their export contracts or todifferent forms of guarantees.

• Loans are disbursed in EURO currency, either in the form of refinancing facilities extended tocommercial banks or direct loans.

• Banks pre-select eligible candidates, evaluate their creditworthiness, submit the nominees toEXIMBANKA SR and disburse the funds pending EXIMBANKA’s review and approval.

Guarantees and bonds• EXIMBANKA SR issues payment guarantees in support of exports; guarantees of fulfillment of

payment terms by the client or guarantees of bank loan repayment.• EXIMBANKA SR also issues export contract related bonds, such as bid bonds, performance

bonds, maintenance bonds, advance payment bond and retention money bonds.

Rates and fees• EXIMBANKA SR loans carry fixed interest rates or rates derived from the EURIBOR value.• Interest on loans is charged and bills are discounted at the bank’s base rate or EURIBOR rate

(allowable margin for the commercial bank of up to 3%).• Loan processing fees are not charged.• Guarantee fees range from 0.2% to 1% each year based on the collateral security provided.

Factoring of receivables• EXIMBANKA SR factors export receivables from Slovak exporters.• Receivables insured against export credit risks are eligible; insurance contract is assigned to

EXIMBANKA SR.• Interest rate equals to bank’s base rate + business and risk margin ranging from 0.5% to

4.5%.

Slovak RepublicExport Credit Agencies


Direct credits• The interest rate is the combination of the base interest rate of EXIMBANKA SR and the risk

margin (maximum 4.5% p.a.). Risk margin is decreased depending on the collateral securityprovided.

• The fee for processing of the credit request is charged depending on the total amount ofloan.


ECA alliances/agreements

EXIMBANKA SR has concluded cooperation agreements with nearly 50 export credit agenciesand development institutions worldwide.

Member and active participant of:Berne UnionPrague Club

Slovak Rep

ublic



SID – Slovene Export and DevelopmentBank Inc.

CapitalNominal capital: a300,000,090Number of shares: 3,121,741Capital and reserves: EUR 332.008,000(Equity)

Ownership structure: 100% Republic ofSlovenia

Activities

For its own account SID Bank carries out the following activities:• financing in domestic (EUR) or foreign currency (USD) through:

– refinancing of banks and other financial institutions– co-financing transactions and investments– direct financing (only when the first two options are not available)

• provision of guaranties to domestic and foreign beneficiaries

SID Bank actively promotes projects pertaining to:• SMEs• R&D• environmental protection and energy efficiency• infrastructure• regional development• international business transactions and international economic cooperation• cooperation with developing countries (ODA projects)

On behalf and for the account of the Republic of Slovenia SID Bank, as theauthorised export-credit agency (ECA), provides the following services:• short-term export credit insurance against non-commercial and other non-marketable risks• investment insurance against commercial and/or non-commercial risks• medium-term export credit insurance against commercial and/or non-commercial risks• other authorized activities

(SID Bank Inc., Ljubljana)Ul. Josipine Turnograjske 6LjubljanaSI – 1000SloveniaTel: +386 (1) 200 7500Fax: +386 (1) 200 7575Website: www.sid.si

Tel: +386 (1) 200 7500Fax: +386 (1) 200 7575E-Mail: [email protected]

SloveniaExport Credit Agencies


Export Credit Insurance

Lender or supplier may apply for:• Preliminary Letter of Interest• Uncommitted Promise of Insurance• Promise of Insurance• Insurance Policy

Types of transactions eligible for cover:• Supplier Credit• Buyer Credit:

– Credit to foreign buyer– Credit to foreign bank

• Credit Lines• Project finance insurance• Working capital financing insurance• Other:

– Pre-Shipment risk– Bank Guarantees Insurance– Goods on Consignment Abroad– Contractual Equipment Insurance– Cash Against Document Collection Insurance

Cover:• Commercial risks:

– Protracted default– Buyer’s permanent insolvency

• Non-Commercial risks:– Political risks– Public buyer risk– Natural disasters

• Percentage of cover up to 95%• Credit periods:

– Short term (Supplier Credit): Up to 1 year– Medium and Long term: From 1 year up to 10 years

• Third country goods can in general be covered up to 70%; on case-by-case basisreinsurance is arranged with third country ECA

• Cover can be provided in foreign currencies, whilst indemnity is paid in home currency• Insurance can be provided for floating-interest rate or fixed-interest rate loans

Investment Insurance

Application

Investor can apply for:• Preliminary Letter of Interest• Promise of Insurance• Insurance Policy

Sloven



Types of investment eligible for cover:• Equity• Shareholders Loan• Non-shareholders Loan

Risk covered (non-commercial):• Non-commercial

– War/Civil Disturbances– Transfer– Expropriation– Breach of Contract– Denial of Justice– Catastrophic Risks

• Commercial (only in combination with non-shareholders loan)– Protracted default– Permanent insolvency

Duration of insurance:• Equity: 3 – 15 years• Loan: min. 3 years

Project Finance Insurance

Cover provided for project finance is reviewed on a case-by-case basis.

The following conditions are applied:• Compliance with OECD Consensus• Sponsor must provide substantial amount of equity ( min. 30%)• Cover is based on risk mitigation, where SID covers both non-commercial and commercial

risks up to agreed limit

Associate Companies• PKZ: credit insurance (marketable risk), 100% owned by SID bank• PRO KOLEKT: debt collection, 100% owned by SID bank• PRVI FAKTOR: factoring services, 50% owned by SID bank• CMSR: country research services and international development cooperation, 100% owned

by SID bank

ECA alliances/agreementsSID Bank has different cooperation agreements. Agreements cover reinsurance, joint/parallelinsurance, co-financing and exchange of information.• Austria – OeKB• Belarus – EXIMGARANT• Belgium – ONDD• Bosnia in Herzegovina – IGA• Bosnia in Herzegovina – IBF• Bulgaria – BAEZ• Egypt – ECGE• Croatia – HBOR

SloveniaExport Credit Agencies


• India – ECGC• Iraq – TBI• Italy – SACE• Israel – ASHR’A• Canada – EDC• Korea – K-sure• Macedonia – MBPR• Germany – Euler HERMES• Germany – PwC• Netherlands – ATRADIUS• Oman – ECGA• Romania – R-EXIM• Russia – ROSEXIMBANK• Russia – EXIMGARANT• Russia – INGOSSTRAKH• Russia – VNESHTORGBANK• Russia – VNESHECONOMBANK• Russia – RESO GARANTIA• Russia – SBERBANK• Serbia – AOFI• Slovakia – EXIMBANKA SR• Spain – CESCE• Sweden – EKN• Turkey – TURK EXIMBANK• Ukraine – LEMMA• Ukraine – UKREXIMBANK• Uzbekistan – UZBEKINVEST• Great Britain – ECGD• United States of America – US EXIM• United States of America – Zurich Emerging Market Solutions• Multilateral Investment Guarantee Agency – MIGA• European Bank for Reconstruction and Development – EBRD

Sloven



Credit Guarantee Insurance Corporation ofAfrica (CGIC)31 Dover StreetRandburg 2125South AfricaTel: (+27) 11 889 7000Fax: (+27) 11 886 1027

Established: 1956

The names of CGIC's Directors and Company Secretary may be viewed at:http://www.creditguarantee.co.za/company_directors.htm


Function:Provides short-term credit insurance

Institution

Credit Guarantee Insurance Corporation of Africa Ltd (CGIC) provides credit insurance. The mainshort-term policies available are supplier credit, pre-shipment cover, post shipment cover,consignment stocks cover and domestic cover. These policies cover up to 90% for political andcommercial risk on Export and up to 85% domestic. CGIC reinsures all political and commercialrisks in the private market.

Insurance

Insurance policies fall into two main categories:• Export short-term, which provides cover for export transactions where credit terms do not

generally exceed 180 days.• Domestic, which offers a comprehensive range of policies to cover all domestic corporate

credit risk situations.

South AfricaExport Credit Agencies


Application• Supplier must apply for cover and if approval is granted a final commitment will be given.• CGIC provides a unique interactive on-line system, (‘CregaLink’) allowing policyholders

immediate access to information and credit limits.• Letters of interest or preliminary commitments are not given.• On average quotations are issued within 3 days.• CGIC does not have a response charter.

Cover:• Short-term cover is provided generally up to 180 days.• Short-term small business policies are also provided.• Against debtor insolvency; protracted default (Domestic)• Against debtor insolvency; protracted default; repudiation and political risks (Export)

South Africa



Export Credit Insurance Company of SouthAfrica (ECIC)Member of the Berne Union

Executive Management:Dr Patrick C. Kohlo, Chief Executive OfficerMr Mandisi Nkuhlu: Chief Operations OfficerMs Sedzani Mudau, Chief Financial OfficerMs Lindelani Mphaphuli, General CounselMr Lesego Mosupye, Chief Risk Officer

Contact Person: Mr Chris Thirion,Head: Planning & Portfolio Management

Founded: 2001

Ownership: South African Government throughthe Department of Trade and Industry

Major Facilities

Export Credit Insurance: Underwrites loans (buyer and supplier credit as well as project financefacilities) over the medium/long-term, covering risks such as commercial and political events ofdefault, breach of contract, currency inconvertibility and transfer risk etc.

Investment Insurance: Cover offered to investors (equity, shareholder loans as well as commercialloans) against expropriation, confiscation, nationalisation, war, armed hostilities, civil war,rebellion, revolution or similar disturbances, currency inconvertibility and transfer risk.

Performance Bond Insurance: Cover Performance Bonds issued to SMMEs in order to enablethem to participate in projects dealing with exports of capital goods or services.

Corporate Description: ECIC SA was established in 2001 in terms of the Export Credit andForeign Investments Insurance Act, 1957, as amended. It is a registered insurer and a publiccompany with limited liability. The Government of South Africa, through the Department of Tradeand Industry is the sole shareholder. The ECIC SA has been mandated by government to enterinto contracts of insurance with, or for the benefit of persons carrying on business in South Africain the course of trade with countries outside South Africa, primarily for medium/long-term exportcredit and investment insurance.

Address:36 Ingersol RoadLynnwood GlenPretoria, South Africa

Postal Address:PO Box 528, Menlyn, 0063, Pretoria,South AfricaTel: +27 12 471 3800Fax: +27 12 471 3850/1Email: [email protected]: www.ecic.co.za

South AfricaExport Credit Agencies


Korea Trade Insurance Corporation (K-sure)2nd to 16th FloorsSeoul Central Building, 136 Seorin-dongJongno-gu, Seoul 110-729Republic of KoreaTel: (+82) 2 399 6800Fax: (+82) 2 399 6598Website: www.ksure.or.kr


Function:Provides short-, medium-term and long-term export credit insurance, import insurance, untiedloan insurance, investment insurance, bond insurance

Institution

On July 7, 2010, KEIC, Korea's official export credit agency, became Korea Trade InsuranceCorporation (K-sure), in order to expand the scope of its operations to include import creditinsurance in an effort to adapt to global trade trends (i.e. interdependency of import and export).

K-sure was established in July of 1992 for the purpose of issuing credit insurance and guaranteesin relation to Korea’s exports and overseas investment/business, an operation previously handledby Korea Eximbank. K-sure is committed to developing a variety of export credit insurance/guarantee products insurance products and high value-added financial services with a view tofostering nation's export and overseas investment/business, and promoting global trade.

Product Insurance

Insurance cover is provided in the following areas:• Medium- and long-term export credit insurance (Buyer and Supplier Credit)• Overseas Business Credit insurance (untied loan insurance)• Export bond insurance• Overseas investment insurance• Foreign Exchange risk insurance• Interest make-up insurance• Overseas investment insurance• Export bond insurance• Short-term export credit insurance• Import credit insurance

Application:• Supplier or lender may apply for a letter of interest or preliminary or final commitment.

South Ko

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Cover:• Up to 100% of 85% of the eligible contract value can be insured.• Up to 100% of the premium fee can be capitalized into the loan value.• Interest during construction can be covered.• Up to 100% of political and commercial risks can be covered during construction.• Up to 15-30% of the contract value of local contents can be insured.• Cover is typically provided in hard currency such as the US dollar or Euro.• Residual risk must remain with the lending bank.

Interest:• Insurance can be provided for fixed-interest rate or floating-interest rate loans.• The CIRR is offered by the funding bank supported by interest make-up insurance.• Insurance can be provided for fixed-interest rate or floating-interest rate loans.

Funding• Direct loans from commercial banks

Fees• No processing/application fee is charged.• Premium is charged up front or can be capitalized.

Project Finance

K-sure offers project finance.

Structured Finance

K-sure offers structured finance including ship finance.

Cover• K-sure covers normal political and commercial risks in the pre- and post-completions periods.• There is no fixed policy for the level of risk sharing for sponsors or banks, although banks

usually take the uninsured portion risks.• K-sure can cover up to 100% of the insurable amount including IDC, and accrued interest.


ECA alliances/agreements:• K-sure has re-insurance agreements with CESCE (Spain), EKN (Sweden) and SACE (Italy)• K-sure has co-insurance agreements with OND (Belgium), Coface (France), Atradius

(Netherlands) and Finnvera (Finland).• K-sure has cooperation agreements with Euler Hermes, ECICS (Singapore), KUKE (Poland),

BAEZMIGA (Bulgaria), NEXI (Japan), Sinosure (China), ECGD (UK), IFTIC (Israel), SEC(Slovenia), EGFI (Iran) BANCOMEXT (Mexico), UNIC (Uzbekistan), Turk EXIMBANK (Turkey),MIGA, Malay Exim (Malaysia). ECGD (Egypt), HBOR (Croatia), SACE (Italy), KECIC (Kazakhstan

South KoreaExport Credit Agencies


The Export-Import Bank of Korea (Korea Eximbank)16-1, Yeouido-dongYeongdeungpo-guSeoul, 150-996Republic of KoreaTel: (+82) 2 3779 6114Fax: (+82) 2 784 1030Website: www.koreaexim.go.kr


Function:Provides loans and guarantees

Institution

The Export-Import Bank of Korea (Korea Eximbank) is a governmental financial institution whosepurpose is to promote the development of the Korean economy and economic cooperation withforeign countries.

Korea Eximbank supports export and import transactions, overseas investment projects and thedevelopment of natural resources abroad through extending loans and issuing guarantees.

Financing

Korea Eximbank supports exports through extending loans or issuing guarantees directly to bothsuppliers and buyers and providing interbank export credit to foreign financial institutions. Thebank’s financing services fall into several categories. The most important services are exportcredits, overseas investment credits, and major resources development credits.

Application• For buyer credit, supplier, bank or borrower may apply for preliminary commitment or final

commitment.• For supplier credit, supplier may apply for a letter of interest, preliminary commitment or final

commitment.

Loans• Maximum financing of the export value is up to the export contract value less the required

cash payment,

South Ko

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Structure of financing• Korea Eximbank can provide direct loans to borrowers.• Interest rate is Libor or CIRR-based.• Loan exposure ceilings are set on a country-by-country basis.• Repayment terms are based on OECD Arrangement.• Information Korea Eximbank requires before lending includes country risk information,

industry-specific information including market situation, technical information, credit riskinformation of the involved parties and a security package.

• Korea Eximbank uses a number of positive vetting checks. These include: eligibility of theproject, feasibility of the project, credit of the involved parties, country risk and exposure andcompletion risk.

• To cross-reference information, the bank uses other relevant institutions or consultants.• Korea Eximbank typically requires co-financing from a commercial bank in an amount to be

determined on a case-by-case basis.

Fees• No processing/application fee is charged.• The exposure fee will be equal to or higher than minimum premium in the OECD

Arrangement.• The commitment fee will be charged semi-annually on the undisbursed balance.• The management fee will be charged up-front on a project-by-project basis.

Guarantees

Guarantees provided by Korea Eximbank fall into two categories:

1) financial guarantees for the repayment of principal and interest on the loans

2) project-related guarantees for the performance of Korean contractors.

Financial guarantees• Guarantee fee is determined on a case by case basis, depending on the nature of the

underlying credit.• Coverage: up to 100% of principal and interests of the related credit covering comprehensive

risk.

Project-related guarantees• Applicant: Korean contractors.• Korea Eximbank provides bid bond, advance payment bond, performance bond and retention

bond.• Coverage: up to the amount stipulated in the contract

South KoreaExport Credit Agencies


Project Finance

Korea Eximbank currently offers direct loan and guarantee programmes together with interestrate support on a limited-recourse basis.

Commitment is made paying special attention to the following points:• Relevant risks should be allocated among project parties.• Sponsors’ equity contribution and support may vary depending on types of projects, project

economics and market risk for the products.• Level of support is basically the same as those applied to the Direct Loan.

Korea Eximbank Carbon Credit Fund• Korea Eximbank launched ‘Korea Eximbank Carbon Credit Fund,’ amounting to KRW 100

billion, in September, 2009. The fund purchases discounted Certified Emission Reductions,CERs, directly from entities in developing countries, the primary market, before issuance andallots the CERs to participant companies in the Fund once the CERs are issued.


ECA alliances/agreements• In promoting cooperation with global business partner, Korea Eximbank has entered into

cooperation agreements with international commercial banks, ECAs, and multilateraldevelopment banks such as EBRD, AfDB and IDB.

South Ko

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Compañía Cesce, Seguros de CréditoVelazquez 7428001 Madrid,SpainTel: (+34) 914234805Fax: (+34) 91 4356066Website: www.cesce.es

Ownership structure: Joint stock company, majority public owned

Function:Provides credit and investment insurance and bonds.

Institution

Cesce provides export credit and investment insurance. Cesce also provides short term creditinsurance and domestic bonding under its private account. Cesce is majority owned by thegovernment (50.25%). The rest is owned by banks and insurance companies. Cesce’s activity, asthe official export credit agency of Spain, is bound by the OECD Consensus and carries the fullfaith and credit of the government.

Insurance Application:• In Spain, official export credit insurance is provided by Cesce and interest rate support is

provided by Instituto de Crédito Oficial (ICO).

Cover:Cesce covers on behalf of the Spanish State political risks, as well as commercial risks with aduration of two years or more.• Policies cover up to 99% for both political and commercial risks.• Cover is available in all currencies quoted by the European Central Bank. Additionally,

currencies not quoted at the ECB may be admitted, on a case by case basis. Local currencycover is provided without a crystallisation clause.

• Investment insurance is available both to investors and to financiers. A new investmentinsurance policy was launched in 2006, incorporating a more flexible procedure and thepossibility for the investor to choose the most suitable cover for their requirements.

• Third country goods and services may be covered up to 30% as a general rule, up to 45% incases of national interest, or, on a case by case basis, up to higher percentages, dependingon the specifics of the transaction.

• Local costs up to 30% may be covered (Consensus limits).• Cesce´s insurance premium may be financed.• As of July 2012, Cesce can issue unconditional guarantees in addition to the usual official

export credit insurance products.

SpainExport Credit Agencies


Instituto de Crédito Oficial (ICO)Contact:Concepción Frutos HernánE-mail: [email protected]

Sonsoles de la Iglesia LassalettaE-mail: [email protected]

Ownership structure: 100% sovereign.

Function:Financial Agent of the Spanish Government and Development Bank.

Institution

Instituto de Crédito Oficial (ICO) stabilizes interest rates on export credits. These credits aregranted by commercial banks, in euros or foreign currencies, under OECD consensus rules. ICOcompensates commercial banks for the difference in interest between OECD CIRR and marketrates. The General Directorate for Trade and Investment (Ministry of Industry, Tourism andCommerce) is the responsible for the design, regulation, execution and authorization of theinstrument, while ICO manages it on behalf of the before mentioned Institution.

Financing

Spanish exports can be financed under the CARI system (Convenio de Ajuste Recíproco deIntereses) or IMU (Interest Make-Up) system, which was introduced in 1983. The system consistsof comparing, on a six-month basis, the yield that an institution would have obtained, had itformalized the loan on market rates, with the yield obtained by formalizing it at the CIRR. Theresultant difference, plus a margin in favour of the financial institution, is settled between thesaid institution and ICO at the end of each period of comparison, and it's known as theadjustment. Compañía Española de Seguros de Crédito a la Exportación (CESCE) insures up to99% of the loan, taking care of any political risk on the part of the state.

Application:• The application must be presented by the credit institution financing the export operation.• Documents required: application form, commercial contract, statement of foreign materials,

statement of commercial fees, statement of local expenses, statement of existence/nonexistence of any relationship between the exporter and the buyer in the form of shares andholdings and statement of the new production of the goods exported.

Paseo del Prado No 428014 MadridSpainTel: (+34) 91 592 1600Fax: (+34) 91 592 1785 / 592 1700Website: www.ico.es

Spain



• Before the CARI is executed, a copy of the signed loan agreement and a copy of the currentCESCE offer or policy (in case this company insures the operation) must be presented.

Loans provided:• Foreign buyer loan: the foreign buyer is considered as the borrower and the supplier/exporter

is the direct beneficiary of the loan.• Domestic supplier loan: the supplier is considered as the borrower. The foreign buyer is

contractually bound to the supplier only through the Commercial Contract.• Loan facility or credit line: the financial institution makes an overall amount available to the

borrower, normally a bank of the buyer country. From this amount various contracts may befinanced. It is a variation of the buyer loan.

Financial Institutions have tended to establish buyer credit lines, usually with banks, governmentor public agencies, which then select end-users and usually guarantee those individual loans.Credit lines for one buyer can also be opened, allowing it to select Spanish exporters.

Items financed:• 85% of the exported goods and services and 100% of local expenses, with the following

limits:• Foreign goods and services: 85%, with a limit of 15% of the total amount represented by the

goods and services exported. Nevertheless, up to 30% of this amount may be financed,providing that the General Directorate for Trade and Investment approve the exceeding.

• Local expenses: 100%, with a limit of 30% of the total amount represented by the goods andservices exported.

• Commercial fees: 85%, with a limit of 5% of the total amount represented by the goods andservices exported.

• Besides, it could be financed up to 100% of the Interest and financial fees accrued duringthe drawdown period if they are provided for by Spanish financial institutions and approvedby the General Directorate for Trade and Investment.

Interest:• The CIRR applies.

Repayment terms:• In accordance with OECD consensus rules.

Maximum terms, minimum down payments, financing of local costs, minimum interest rates andother conditions:• Are subject to OECD consensus rules.

Advantages of the system:For the financial institutions:• An interest rate make-up and a margin (from ICO).• A credit insurance of up to 99% to the financing bank (from CESCE).

For the Spanish exporters:• It offers similar conditions to those offered by competitors who get financial conditions under

the IMU scheme.

SpainExport Credit Agencies


Sri Lanka Export Credit InsuranceCorporation (SLECIC)Level 4, Export Guarantee HouseNo 42 Navam MawathaColombo 2Sri LankaTel: (+94) 4 719410-14 or 5378161-65Fax: (+94) 4 719400E-mail: [email protected]: www.slecic.lk


Function:Provides short-term guarantees, insurance and finance

Institution

The Sri Lanka Export Credit Insurance Corporation (SLECIC) provides guarantees, insurance andfinancing. Policies cover up to 95% for political risks and up to 90% for commercial risks. Nointerest support is offered.

SLECIC carries the full faith and credit of the government. The company is not bound by OECDconsensus and does not have a project finance department.

Guarantees

Guarantees provided by SLECIC encourage commercial banks and institutions in Sri Lanka togrant credit and guarantee facilities to exporters. SLECIC issues the following types of bankguarantees:

Export production credit guarantee – 75% coverThe export production credit guarantee is issued to commercial banks against domestic letters ofcredit opened by an exporter for the supply, production or manufacture of goods by the exporter.

Pre-shipment credit guarantee for new and small-scale exporters – 75%coverThe pre-shipment credit guarantee for new and small-scale exporters provides to increase exportturnover. The maximum permitted limit, granted to any bank in respect of a small-scale exporterwill not exceed SLR 2 million on a revolving basis.

Sri Lan

kaExport Credit Agencies


Pre-shipment credit guarantee (standard) – 66 2/3% coverThe pre-shipment credit guarantee facilitates the granting of pre-shipment finance to exporters.This guarantee is considered as an additional form of security that an exporter can offer to abank obtaining pre-shipment finance on easier payment terms.

Whole turnover pre-shipment credit guaranteeThe whole turnover pre-shipment credit guarantee protects the bank granting pre-shipmentfinance to the exporter against losses that the bank may sustain in granting such pre-shipmentadvances to the exporter.

Post-shipment credit guarantee for new and small-scale exporters – 85%coverThe post-shipment credit guarantee for new and small-scale exporters provides an 85% cover tocommercial banks and post-shipment credit to new and small-scale exporters on liberal terms.

Post-shipment credit guarantee (standard) – 75% coverPost-shipment credit guarantees are offered as standard guarantees on behalf of medium- andlarge-scale exporters to banks enabling exporters to obtain bill purchase facilities to continueexport activities.

Export performance guarantees – 75% to 100% coverA range of export performance guarantees to commercial banks favouring exporters of goodsand services are issued as counter-guarantees. These guarantees cover any loss sustained bythe bank due to the failure of the exporter to fulfil his obligations under the export contract owingto their insolvency or protracted default. Bid bonds, performance bonds and other guarantees, onaccount of the director-general of customs are used to help the exporter by postponing thepayment of duty on goods exported until the realization of export proceeds are also issued.

Application• Borrower may apply for a letter of interest, preliminary commitment or final commitment.

Cover• Up to 75% of the eligible contract value can be guaranteed.• The guarantee fee cannot be capitalized into the loan value.• Third party goods are not covered.• Interest during construction is not covered.• Guarantees are available for short-term political and commercial risks.• Guarantees can be available for multiple sales financed under a single line of credit provided

by a bank to foreign banks or buyers.• Cover may be provided in foreign currencies.• Bills covered by guarantee policies cannot be freely transferred.

maximum guarantee of export value (%)buyers political commercialprivate 0 0public 95 85sovereign 0 0

Sri LankaExport Credit Agencies


Interest• No interest support is offered.• Guarantees can be provided for fixed-interest or floating-interest rate loans.

Funding• Commercial banks can supply funding.• Loans may be available in local currency.• Repayment terms are based on but not bound by OECD consensus.

Fees• A processing/application fee is charged. The rate starts at SLRs. 750.• Premia are charged on a monthly basis. They are charged on the contract value and on total

exposure.• No commitment fees are charged on loans.• Upfront premium at the rate of 4% per annum charged on Direct Guarantee

InsuranceWhole turnover export payment insurance policies of SLECIC provide comprehensive cover toexporters against non-payment by buyers abroad due to commercial and political risks. There aretwo types of export payments insurance policies: export payments insurance standard and anexport payments insurance policy for new and small-scale exporters.

Application• Lender may apply for a letter of interest or preliminary commitment.• Borrower may apply for final commitment.

Cover• Up to 95% of the eligible contract value can be insured.• Insurance can be available for multiple sales financed under a single line of credit provided

by a bank to foreign banks or buyers.• The premium cannot be capitalized into the loan value.• Third country goods are not covered.• Interest during construction is not covered.• 85-95% of political risks and 80-90% of commercial risks can be covered during

construction.• Bills covered by insurance policies cannot be freely transferred.• Cover may be provided in foreign currencies.• Insurance is available for short-term political and commercial risks.• Residual risk must remain with the lending bank.



Sri Lan

kaExport Credit Agencies


Funding• Commercial banks can supply funding.• Loans may be available in local currency.• Repayment terms are based on but not bound by OECD consensus.

Fees• A processing/application fee is charged.• Premia are charged on a monthly basis. They are charged on the contract value and total

exposure.• No commitment fee on loan.

Sri LankaExport Credit Agencies


EKNThe Swedish Export Credits Guarantee BoardP.O. Box 3064S-103 61 StockholmSwedenTel: (+46) 8 788 00 00Fax (+46) 8 411 81 49E-mail: [email protected]: www.ekn.se

Contact:Karin Apelman, Director Generale-mail: [email protected]

Helén Seemann, Director, Business area for large enterprisese-mail: [email protected]

Gert Eriksson, Director, Business area for SMEe-mail: [email protected]

Beatrice Arnesson, Director, Communicationse-mail: [email protected]


Function:EKN is a government agency that supports Swedish exports and the internationalisation ofSwedish industry. This we do by offering exporting companies and banks guarantees for paymentand financing, together with advice on business structure and risk management.

EKN is a business partner to exporting companies and banks. With us you can insure yourselfagainst the risk of non-payment. We insure both small and large transactions in most countriesof the world.

A prerequisite for EKN’s participation is that the transaction promotes Swedish interests. Thismeans the export transaction will normally relate to Swedish products, although transactions thatindirectly lead to Swedish exports are also acceptable.

Swed

enExport Credit Agencies


Guarantees for paymentLoss on claim guaranteeGuarantee for loss on claim covers the risk of non-payment for an exporter, for short-, mediumand long-term credits. The EKN guarantee can work as a tool for financing as the guarantee istransferable to banks.

Guarantee for loss on claim in favour of lender covers the risks of Swedish or foreign banks fordefaults on loans to foreign importers or their bank representatives in connection with an exporttransaction.

Guarantee for financingWorking capital guaranteeEKN’s working capital guarantee facilitates cooperation between exporting companies and banks.Under this guarantee, Ekn shares the risk with banks, making it easier for them to grant loansand overdraft facilities to finance export activities. The guarantee is for the financing needs ofsmall and medium-sized companies.

Guarantees for contract guaranteesCounter-guaranteeA bank or some other financial provider that has issued a contract guarantee for an exporttransaction – a performance bond, for example – can in turn obtain a counter-guarantee fromEKN. This covers the risk of the beneficiary exercising the contract guarantee, and appliesregardless of whether or not the exporter fulfils its contractual obligations.

Guarantee for unfair callingAs an exporter, it can feel risky issuing a contract guarantee, as the buyer may use it even if youhave discharged your contractual obligations. EKN’s guarantee for unfair calling providesprotection against the risk of unfair calling by the beneficiary – normally the buyer.

Guarantees for bills of exchange and letters of creditBill of exchange guaranteeThe bill of exchange guarantee protects a discounting bank against non-payment of a bill ofexchange. This applies whatever the reason for non-payment, provided the bill of exchange wascorrectly drawn up and processed.

Letter of credit guaranteeIf a bank has confirmed a letter of credit, it can guarantee half of the amount with EKN, and indoing so, share the risk.

Guarantee for investmentThe Investment guarantee covers the risk of political events for Swedish investors in new foreigninvestment. Both goods and services investments – principally new investments – may beinsured. Share acquisition or part ownership in a company through contribution of capital orcapital in kind can also be covered by a guarantee. Likewise, loans comparable to contribution ofshareholders’ equity. Insurance is also available on returns on investment.

Sweden



Swiss Export Risk Insurance (SERV)Zeltweg 63CH-8032 ZurichSwitzerlandTel: +41 44 551 5555Fax: +41 44 551 [email protected]

Contact: Herbert Wight, Director

Ownership structure:Swiss government institution under public law

Function:Swiss Export Risk Insurance (SERV) insures export transactions against political and/orcommercial risks. It offers small and medium-sized companies as well as large corporationsattractive insurance solutions in difficult markets.

Products

SERV offers the following products:• Pre-shipment risk insurance• Supplier credit insurance• Buyer credit insurance• Contract bond insurance• Confiscation risk insurance• Multi-buyer insurance• Working capital insurance• Counter guarantee• Refinancing guarantee• Letter of credit confirmation insurance

These products cover the following risks:• Political risk• Transfer risk• Commercial risk• Force majeure

Application:Exporters and banks should use the electronic application form which can be found underhttp://www.serv-ch.com/en/application-portal/

Switz

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Cover:• Up to 95% of the eligible contract value plus interest can be insured; for counter guarantees

and refinancing guarantees: up to 100%• Up to 100% of the insurance premium can be included in the insurance contract.• Goods delivered from third countries can be included up to 50% (in exceptional cases up to

70%) in the insurance contract.• Up to 100% of the interest during construction may be added.• Local cost can be covered up to 23% of the total order value.• Typical credit periods are from 2 to 10 years depending on country, goods, rules and

regulations.• Cover is provided in all current, freely convertible currencies.• SERV insurance policies may be assigned upon SERV approval only.

Maximum insurance cover of export credits:(95% of the contract value)Buyers political commercialprivate 95 95public 95 95sovereign 95 95

Interest:• CIRR is not offered.• Insurance cover is provided for loans with fixed interest rates and floating interest rate.• Interests in arrears (the interest cost incurring between non receipt of payment under the

loan and indemnification by SERV) is covered.• Usual waiting period from default to payout is one to three months; for counter guarantees:

10 banking days.

Funding:• Funding is not available.

Fees:• No processing application fee is charged for standard transactions.• Insurance premiums are generally charged in advance.

Project Finance

SERV provides cover for project financing.

Additional information

ECA alliances/agreements• SERV has alliances with many other export credit agencies from other OECD countries.• Re-insurance agreements are in force with Austria, Denmark, Finland, France, Germany, Italy,

Japan, Poland, Spain, Sweden, the Czech Republic and the Netherlands.

Switzerland



The Export-Import Bank of the Republic ofChina (Eximbank)8th Floor, 3 Nanhai RoadTaipei,TaiwanTel: (+886) 02-2321-0511Fax: (+886) 02-2394-0630Email: [email protected]: www.eximbank.com.tw

Ownership Structure: Government

Function:The aim is to facilitate the export and import trade of Taiwan through offering Export CreditInsurance, Relending Facilities and various financing facilities.

Eximbank has the quality, the capability and the commitment to become the bridge between thelocal exporters, financial institutions, and foreign importers. With the professional financingservices and insurance protection provided by Eximbank, exporters are able to manage theirtrading risk and proficiently deploy their funds.

Institution

Eximbank was established in 1979 as a state-owned bank for export and import credit.

The major mission of Eximbank is to work in line with the government’s economic and tradepolicies by providing financial services to help domestic enterprises expand their external tradeand overseas investment and to promote international cooperation.

Three domestic branches of Eximbank have been established in Kaohsiung, Taichung andHsinchu.

Major facilities

Export credit insuranceEximbank engages in a wide range of export credit insurance services to protect exportersagainst the risk of non-payment by foreign buyers. Companies can also benefit from Eximbank’sinsurance to cover the political risk in the host countries by being compensated for the lossesthat might consequently arise.

Eximbank provides various types of export credit insurance as the ?following:• Comprehensive D/P, D/A Export Credit Insurance• Comprehensive O/A Export Credit Insurance• Comprehensive Export Finance Credit Insurance• Comprehensive General Export Credit Insurance

Taiwan



• Safety Export Credit Insurance for Small & Medium Enterprises• L/C Export Credit Insurance• Medium and Long-term Export Credit Insurance• Overseas Investment Credit Insurance• GlobalSure Credit Insurance

LoansEximbank offers various short, medium and long-term financing services to help manufacturersto export goods to countries around the world. It also offers financing to assist in the importationof sophisticated equipment, essential industrial raw materials and foreign technology. Besides, itprovides financing services to those companies who undertake investments or constructionprojects overseas.

In addition, Eximbank provides relending facilities to foreign financial institutions, which in turnrelend funds to their clients for purchasing goods from Taiwan exporters.• Type of goods to be financed – Equipment, parts, raw materials and other goods imported

from Taiwan.• Currency – In US dollars. Other major currencies may also be considered.• Percentage and Amount of Financing – Up to 85% of the gross purchase price, and the

amount of financing shall not exceed US$2 million.• Tenor – 1 year to 5 years• Interest Rate – The six month London Inter-Bank Offered Rates (Libor) for US dollar plus

margin.

The main types of loans extended by Eximbank include:• Medium and Long-term Export Loans• Short-term Export Loans• Overseas Investment Loans• Medium and Long-term Import Loans• International Syndicated Loans• Relending Facilities

Guarantees

Eximbank provides guarantee services mainly to help secure bids for domestic major publicconstruction projects and overseas construction projects, and to assist in the importation ofsophisticated equipment, essential industrial raw materials and foreign technology.

Eximbank’s guarantee services include:• Export Guarantee• Import Guarantee• Overseas Construction Guarantee• Domestic Major Public Construction Guarantee• Other Guarantees

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Export-Import Bank of Thailand (EXIM Thailand)EXIM Building1193 Phaholyothin Road, Phayathai,Bangkok 10400 ThailandTel: (+662) 271 3700, 278 0047, 617 2111Fax: (+662) 271 3204SWIFT Code: EXTH TH BKWebsite: www.exim.go.th

Contact for export credit insurance and investment insurance:Mr. Jarupat PanityingFirst Vice President, Export Credit Insurance DepartmentTel: (+662) 271 3700, 278 0047, 617 2111 ext. 1701Fax: (+662) 271 3629

Contact for loan and guarantee facilities:Mrs. Wanpen UnchundachaFirst Vice President, International Project DepartmentTel: (+662) 271 3700, 278 0047, 617 2111 ext. 2601-2Fax: (+662) 271 3020

Ownership structure: 100% owned by the Royal Thai Government (Ministry of Finance)

FunctionProvides short-, medium- and long-term loans, guarantees, export credit insurance, investmentinsurance and other financial solutions.

Institution

Export-Import Bank of Thailand (EXIM Thailand) started its operation in February 1994 as a state-owned specialized financial institution under the Ministry of Finance’s supervision. The Bankoffers both financial and non-financial facilities to promote and support Thai businesses both athome and abroad contributing to national development as well as earning or saving foreignexchange.

Insurance

Short-term Export Credit InsuranceUnder short-term export credit insurance, EXIM Thailand provides exporters with payment riskcoverage for all kinds of products distributed to markets worldwide under terms of payments not

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exceeding 180 days. Insured exporters will be indemnified for non-payment of goods caused bycommercial or political reasons.

Type of Policies

1. EXIM SUREThis is a “Whole Turnover” policy, covering all accounts receivable under different terms ofpayment including L/C, D/P, D/A and O/A. EXIM Thailand will assess the creditworthiness of eachbuyer and set the applicable credit limit. Exporters then make an export declaration and paypremium on a per-transaction basis. Under this policy, EXIM Thailand helps exporters monitorcredit utilization as well as payment history of their buyers.

2. EXIM FLEXIThis policy offers more individual flexibility to exporters. After the insured volume has beendetermined, EXIM Thailand will analyse exporters’ buyers and set their credit limits. Exportersthen manage credit utilisation by themselves and report overdue payments (if applicable). Thepremium will be paid up-front or by instalment. (This policy does not cover L/C term.)

3. EXIM 4 SMEsThis policy is especially designed for SME exporters who have annual export volume notexceeding 200 million baht. Key service features include lower premium rate and fast approvalprocess. Exporters pay premium up-front for the entire insurance period, manage creditutilization by themselves and report overdue payments as agreed. (This policy does not cover L/Cterm.)

Rate of Indemnity• Commercial Risk: 85- 90% of total loss realised (EXIM SURE: 85%, EXIM FLEXI & EXIM 4

SMEs: 90%).• Political Risk: 90% of total loss realized.

Fee• Credit information fee is charged per buyer or issuing bank (in case of L/C).• Premium is charged on a per-shipment basis (EXIM SURE) or up-front basis (EXIM FLEXI and

EXIM 4 SMEs).• No application fee is charged.

ApplicationInterested exporter is required to submit application and related documents to EXIM Thailand atits Head Office or other branches.

Medium- and Long-term Export Credit Insurance• The scheme was first introduced in 2003.• Covers policyholder against commercial and political risks relating to export contract of

capital goods or services.• Covers both production period and credit period.• Available are both Supplier’s Credit and Buyer’s Credit Insurance Policies.

ThailandExport Credit Agencies


ApplicationInterested exporter can apply for the insurance by submitting a Preliminary Application foreligibility assessment, followed by a Definitive Application for more detailed terms and conditions.

Coverage• Insured period: 180 days up to 5 years for export contract of capital goods and up to 5 years

for export contract of services• Percentage of Cover:

– Up to 70% of actual amount of loss for production period.– Up to 90% of actual amount of loss for credit period.

• Cover can be provided in Thai Baht, US Dollar and Euro.

Premium• Premium is collected up-front when the policy is issued covering the entire insurance period.

Investment Insurance• Political risk insurance coverage against losses arising from imposition of laws, any action

taken by the host government or political disturbance in the host country that adverselyaffects project investment or the investor’s repayment ability.

• Policy can cover both Equity and Loan amounts.• Political Risk Covered :

– Inconvertibility and Transfer Restriction– Expropriation– War and Civil Disturbances– Breach of Contract

• Coverage– Covered Period : 3-15 years– Percentage of Cover: up to 90% of actual loss

• Cover can be provided in Thai Baht, US dollar, Euro, Yen or Pound Sterling.• Premium

– Premium is charged on a yearly basis and collected up-front each year when the policyissued or renewed.

Loan and Guarantee Facilities

Financing Facilities for Overseas Construction ContractsEXIM Thailand provides financing and guarantee services to Thai contractors that engage inoverseas contracts.

1. Long-term loan to overseas contracting partiesEXIM Thailand provides loans up to 85% of the contract amount based on the contractingparties’ ability to generate income from the construction project overseas for loan repayment.Also, EXIM Thailand provides loans to contracting parties’ banks for relending to the contractingparties relying mainly on the bank’s credibility.

2. Short- to medium-term credit to be used as working capitalEXIM Thailand provides credit directly to Thai contractors in Baht or US Dollar, subject to theirability and sources of income.

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3. Issuance of guaranteesSuch as Bid Bonds, Advance Payment Bonds, Performance Bonds and Retention Bonds tosupport Thai contractors. Also, EXIM Thailand counter-guarantees letters of guarantee issued byforeign banks abroad.

Financing Facilities for Overseas InvestmentEXIM Thailand provides financing facilities to support Thai investment projects abroad and foreignprojects partly owned by Thai investors. In addition, the Bank is able to co-finance or providesyndicate lending with commercial banks as well as render agency services relating to thelending. The facilities are denominated in various major currencies.

Buyer’s CreditEXIM Thailand provides US dollars credit facility to foreign buyers or their banks to buy goods orservices from Thailand.

1. Buyer’s credit directly to buyerEXIM Thailand provides US dollars medium- to long-term loan to foreign buyers who importcapital goods or services from Thailand.

2. Buyer’s credit to bank2.1 Revolving Trade Financing Facility (RTFF) is a short-term loan which EXIM Thailand renders

credit lines to importer banks to finance their customers for the procurement ofgoods/services from Thailand. The financing period will not be longer than 360 days fromthe date of payment and each payment shall be paid directly to Thai exporter.

2.2 Re-lendingEXIM Thailand provides long-term loan to overseas banks for relending to the overseasprojects that involved Thai investments.

ThailandExport Credit Agencies


Export-Import Bank of Trinidad & Tobago(Eximbank)# 30 Queen's Park WestPort of SpainTrinidad and TobagoTel: (+1) 868 628-2762Fax: (+1) 868 622-3545E-mail: [email protected]: www.eximbanktt.com

Contact for guarantee & insurance information:Brian Awang, Chief Executive OfficerJosephine Ible, Chief Operations Officer


FunctionProvides insurance and financing

Institution

Export-Import Bank of Trinidad & Tobago (Eximbank), provides trade financing, guarantees andinsurance cover. Policies cover up to 90% for political risks and up to 85% for commercial risks.No interest support is offered.

Eximbank carries the full faith and credit of the government. The bank is not bound by OECDconsensus and does not have a project finance department. Direct loans, commercial banks andgovernment departments/agencies provide the source for lending.

Guarantees

Cover can be provided in local and foreign currencies including T&T dollar, US Dollar, Canadiandollar, pound sterling, Eurodollar and the Eastern Caribbean dollar.

maximum coverage of export credit guarantee (90%)political risk commercial riskshort-term 90 90medium-term 0 0long-term 0 0

Interest• No interest support is offered.• Eximbank can provide direct loans.• Loans may be available in local currency.

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Fees• A processing/application fee is charged. The standard rate is $125.• A premium of 0.75-1.50% of the shipment value is charged per shipment.

Insurance

Eximbank provides commercial and political export credit insurance cover to protect the localexporter for his receivables.

Policies include cover for:• Insolvency for the buyer.• Protracted default by the overseas buyer.• Import control risks.• Transfer risks.• War with the buyer's country or civil war.• Diversion risks.

Application• Borrower may apply for a letter of interest or preliminary or final commitment.

Cover• Up to 90% of eligible contract value can be insured.• The premium cannot be capitalized into the loan value.• Third country goods are not covered.• Interest during construction is not covered.• Insurance is available for short-term political and commercial risks.• Cover is available in local and foreign currencies.• Bills covered by insurance policies cannot be freely transferred.• Residual risk must remain with the exporter or lending bank.• No interest support is offered.

Funding• Eximbank can provide direct loans.• Commercial banks and government institutions/agencies can supply funding.• Loans may be available in local currency.

Fees• A processing/application fee is charged. The standard rate is $65.• Premia are charged on a monthly basis. They are charged on the financed amount and on

contract value.

Lending

Data required before lending:• It obtains information on both exporter and buyer, including financial statements, cash flows,

bank credit reports.• Loan must be fully collaterized using inventory, accounts receivable of other acceptable

collateral.

Trinidad and TobagoExport Credit Agencies


Information Eximbank requires includes:• Financial statements, cash flows, management accounts, business plan, and confirmed

orders from buyers and statement of affairs.


The Eximbank's agri-export insurance policy seeks to provide insurance facilities to localexporters of agricultural commodities against the risks involved in the export of their product tooverseas buyers on credit terms.

Eximbank's technical assistance programme offers such assistance to potential exportersthrough the provision of product market information and raw material sourcing.

Eximbank now provides a services policy to cater for the insurance needs of exporters who offerservices on credit items. The policy would offer coverage similar to that provided for exporters oftangible goods.

ECA alliances/agreements• Eximbank has an alliance with National Eximbank of Jamaica.

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Export Credit Bank of Turkey (Turk Eximbank)Müdafaa Caddesi, No. 2006100 Bakanliklar-AnkaraTurkeyTel: (+90) 312 417 13 00Fax: (+90) 312 418 00 15E-mail: [email protected]: www.eximbank.gov.tr


Function:Provides short-, medium- and long-term credits, guarantees and insurance.

Institution

The Export Credit Bank of Turkey (Turk Eximbank) was founded in 1987, when Turkey adopted afree market economy based on export-led growth and abandoned its traditional industrializationstrategy based on import substitution in the early 1980s.

The bank aims to increase the competitiveness of Turkish exports by improving and diversifyingexports, developing new markets and providing support and a risk free environment for Turkishexporters, investors and overseas contractors. Since its establishment, Turk Eximbank hassupported Turkish exports through various credit, guarantee and insurance programmes.

Within the course of time following the foundation, Turk Eximbank has mainly concentrated onshort term trade financing and short term export credit insurance facilities. However, taking intoconsideration the prevailing developments in the market emphasis is intended to be given tomedium- and longer-term insurance, guarantee and credit facilities. Consequently, short-termtrade financing will be left to commercial banks.

Various programmes are available to channel funds from commercial banks to export financeand to provide financing facilities to insured exports made on deferred payment conditions. TurkEximbank believes that overseas contracting services and investments will play a progressiverole in increasing Turkey’s foreign exchange earnings. Within this framework, the bank puts greatemphasis for developing new political risk insurance schemes for overseas contractors.

The bank conforms to the internationally accepted rules and regulations such as the OECDArrangement. After the establishment of a customs union between Turkey and the EU in 1996and the accession negotiations in 2005, Turkey made arrangements to harmonize its legislationwith that of the EU in related fields, including officially supported export credits.

TurkeyExport Credit Agencies


Turk Eximbank is a full member of the Berne Union and represents Turkey in the Working Partyon Export Credits and Credit Guarantees, the ECG (a subsidiary body of the OECD Trade andAgriculture Directorate[TAD]) and Participants Group (PG) of the OECD TAD. Turkey has been amember of ECG since April 1998 and an observer member to PG since November 2006.TurkEximbank makes efforts to improve its relations with other ECAs and always seeks opportunitiesfor co-operation to provide financing for projects undertaken by Turkish and respective foreignpartners in third countries.

Guarantees

Guarantees mostly relate to political and commercial risk coverage extended to financialinstitutions providing funding for short-, medium- and long-term export-related business.Facilities include:• Guarantees extended to commercial banks financing medium- and long-term transactions

covered under medium- and long-term export credit insurance schemes.• Guarantees extended to commercial banks discounting export receivables arisen from the

shipments that are covered under the short-term export credit insurance scheme.• Guarantees issued to commercial banks and other financing institutions in favour of foreign

borrowers/buyers under buyers’ credits scheme.• Guarantees issued to the employer or employer’s bank for the overseas contractors’ services

against the counter-guarantee of Turkish commercial banks.• Guarantees issued to the buyer’s bank or buyer as a refund guarantees for advance

payments for shipbuilding industry.

Application• Borrower, lender or supplier may apply for a letter of intent or a preliminary commitment or a

final commitment (except in the Buyers’Credit Guarantee where only borrower or lender (incase of guarantees) may apply for final commitment)

• Turk Eximbank does not have a response charter.

Cover• The percentage of cover is up to 90% in principle under short-, medium- and long- term

export credit insurance scheme.• Up to 100% of 85% of the eligible contract value can be guaranteed under country/buyers’

credit programmes.• Third country goods are not covered.•• Short-, medium- and long-term guarantees are provided. Short-term is up to 360 days.• Cover can be provided in foreign currencies.• Working capital guarantees are not offered.• Guarantees on investments are not offered.• Interbank lines of credit are not supported.• Neither swap-breakage costs on interest rates nor exchange rates are covered.

Interest• Guarantees can be provided for fixed-interest rate and floating-interest rate loans.• Delay interest (the interest cost incurred between non-receipt of payment under the loan and

payout under the export credit agency) can be covered.

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Funding• Commercial banks can supply funding.• Repayment terms are based on OECD Arrangement.

Fees• A processing/application fee is not charged up front (except for Buyer’s Credit Guarantee).• Premia are charged on the covered amount.• Commitment fees on loans are determined on a case-by-case basis.

Insurance

Export credit insurance cover is offered by Turk Eximbank through a variety of insuranceprogrammes against commercial and political risks.

70 % of commercial risk-based losses are ceded to a reinsurance panel consisting of domesticand foreign reinsurance companies. The remaining 30% are indemnified by Turk Eximbank fromits own sources. Short term political risks are also ceded to the reinsurance panel within certaincountry limits since 2000.

Short-term export credit insurance cover is provided on the whole-turnover policies, in principle.Premium rates vary in the range of 0.02% to 4% according to the risk category of the buyer’scountry, credit length and payment term of each shipment along with the legal status of thedebtor (private, public or sovereign). The manual of cover conditions for on-cover countries overseven scale country risk category, supported with the premium schedule, is given topolicyholders on the application phase. On the other hand, the premium applicable to medium-and long-term export credit insurance cover takes into account the OECD premium benchmarksand country risk classification.

Export credit insurance cover is provided through three different schemes:

I. Short term export credit insuranceThis type of cover provides companies whole-turnover insurance cover for the exports purchasedon short term credits with several cover exclusions against commercial and political risks.Shipments effected on all payment terms from open-account to documentary credits and to bepaid in 360 days at maximum are covered in accordance with the country cover condition andcredit limit approval. Türk Eximbank is on-cover towards 204 countries at present.comprehensivecover including pre-shipment period (180 days, at maximum)is available whereby post-shipmentcover is compulsory for the relevant applicants. Short-term Export Credit Insurance Programmealso enables exporters to obtain funding from commercial banks, since policy proceedings areassignable. Commercial and political risks covered within this Programme are defined as follows:

Commercial risks:– Insolvency of the debtor,– Protracted default,– Repudiation of the goods,



Political risks:– Non-payment (of the public/sovereign buyer),– Transfer risks,– Non-payment due to social turmoil, such as war, civil war, rebellion, etc.,– Non-payment due to acts such as seizure, confiscation, nationalization, etc.,– Legitimate acts/regulations in debtor’s country hindering export transactions and/or

resulting in non-payment

II. Medium- and long-term export credit insuranceThis is a single contract export credit insurance programme providing cover against commercialand/or political risks for the export of capital and semi-capital goods with credit terms up to fiveyears, in principle. At least 60% domestic content is required. Up to 90% of 85% of the exportvalue can be covered. Extended credit terms may be covered in line with the specific conditionsand/or the requirements of the export transaction.All main risks defined above are also subject tomedium- and long-term export credit insurance coverage.

Specific export credit insurance programme:Provides insurance cover against political and commercial risks for both pre- and the post-shipment stages.

Post-shipment political risk insurance programme:Provides insurance cover against political risks for only the post-shipment stage.

Post-shipment comprehensive risk insurance programme:Provides insurance cover against political and commercial risks for only the post-shipment stage.

III. Insurance Programme for Unfair Calling of BondsIn order to support the overseas contracting services; , a new insurance programme, coveringthe risk of unfair calling of bid bonds, advance payment and performance bonds issued to theaccount of Turkish contractors for their overseas projects was introduced at the beginning of2004. Bonds are issued by commercial banks in favour of the public clients for their projectsundertaken by Turkish contractors or Turkish subcontractors. Turk Eximbank will be responsible toindemnify the Turkish contractor, in case of an unfair calling of the bond in an event beyond thecontractor’s control.


commitment.• Turk Eximbank does not have a response charter.

Cover• Up to 90% of the commercial and political risks are covered under short term export credit

insurance scheme.• Up to 90% of 85% of the export value can be covered under medium- and long term export

credit insurance scheme.• The premium shall be paid up-front for medium- and long- term insurance.• Third country goods are not covered.• Minimum 60% local content is required for medium- and long-term transactions.

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• Short-, medium- and long-term cover is available. Short-term is up to 360 days.• Insurance can be available for multiple sales financed under a single line of credit provided

by a bank to foreign banks or buyers.• Cover can be provided on all leading convertible currencies. (All amounts, regarding

insurance liability, premium, fees and others are fixed to US dollar over a reference rate andall related transactions are carried out subsequently, taking into account the mentionedreference rate).

• Policy proceedings are assignable but are subject to prior approval of Turk Eximbank.• Policies for SMEs are provided.• With regards to the guarantees extended/issued to commercial banks in line with an insured

transaction, residual risk does not have to remain with the financing bank/institution; thesupplier may bear the risk.

Interest• Insurance can be provided for fixed-interest rate and floating interest rate loans.• Delay interest (the interest cost incurred between non-receipt of payment under the loan and

payout under the export credit agency) can be insured.

Waiting periodUnless otherwise stated in the specific cover terms, waiting period is four months for short termtransactions and six months for medium- and long-term transactions (however, claims shall beindemnified in 30 days upon presentation of receivables registration document in bankruptcycases). Receivables should be registered by legal receivers and/or trustees).

Funding• Commercial banks can supply funding.• Repayment terms are based on OECD Arrangement.

Fees• Regarding short-term export credit insurance cover, unified administration fee is charged in

compliance with the legal status of the exporters on the application phase.• Fixed administration fee is charged on the insurance application phase with regards to

medium- and long-term export credit insurance cover. No commitment fee is required.

Buyers’ CreditWithin the framework of buyers’ credit programmes medium- and long-term financial supporthave been mainly provided for the export of capital goods and turn-key projects undertaken byTurkish contractors. These programmes involve the extension of financing facilities togovernments, public institutions/entities and to foreign banks of buyers purchasing Turkish goodsand/or services. Though most of the transactions have been on sovereign basis so far, theguarantees of the banks that are deemed to be creditworthy by Turk Eximbank are alsoconsidered on a case by case basis.

Applicant• Borrower or supplier may apply for a letter of intent .• Borrower may apply for final commitment.



Fees• Premium and commitment fee are determined on a case-by-case basis.• Repayment terms are based on OECD Arrangement.


ECA alliances/agreements• Turk Eximbank has alliances with OND (Belgium), Coface (France), IBRD, EBRD, Euler-Hermes

(Germany), Ashr’a(Israel), Mecib (Malaysia), EDC (Canada), Nexi (Japan), EKF (Denmark),HBOR (Croatia), MBDP (Macedonia), US Ex-Im Bank (US), Sinosure (China), The Export ImportBank of the Republic of China (TEBC), Export Development Bank of Egypt (Egypt), ECGE(Egypt), KUKE (Poland), SEC (Slovenia), EGFI (Iran), EDBI (Iran), Eximbank S.R. (Slovakia),Eximbank of Romania, K-sure (South Korea), Vnesheconombank & Eximbank of Russia(Russian Federation), Asian Development Bank, Islamic Development Bank, ICIEC, and MIGA.

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UK Export Finance (formerly ECGD)ContactsBusiness Enquiries:Tel: (+44) 20 7512 7887E-mail: [email protected]

Media Enquiries:Tel: (+44) 20 7215 5951

General Enquiries:Tel: (+44) 20 7512 7000E-mail: [email protected]

Institution

UK Export Finance is the operating name for the Export Credits Guarantee Department, the UK’sexport credit agency. UK Export Finance provides services such as:• insuring UK exporters against non-payment by their overseas buyers;• helping overseas buyers to purchase goods and/or services from UK exporters by

guaranteeing bank loans to finance those purchases;• sharing credit risks with banks in order to assist exporters in the raising of tender and

contract bonds, in accessing pre- and post-shipment working capital finance and in securingconfirmations of letters of credit; and

• insuring UK investors in overseas markets against political risks.

Details of ECGD’s services are available on its website or from its helpline.

2 Exchange TowerHarbour Exchange SquareLondon E14 9GSSwitchboard:Tel: (+44) 20 7512 7000Fax: (+44) 20 7512 7649

Website: www.ukexportfinance.gov.uk

United KingdomExport Credit Agencies


Export-Import Bank of the United States (Ex-Im Bank)811 Vermont Avenue, N.W.Washington, D.C. 20571USATel: 01-202-565-3946

U.S. Etoll-free: 1-800-565-EXIMFax: 01-202-565-3840Website: www.exim.gov

Ownership: 100% sovereign

Institution

Ex-Im Bank is an independent federal-government agency that finances the sale of US exports tocreditworthy buyers primarily in emerging markets throughout the world. Ex-Im Bank providesworking capital guarantees to lenders for the benefit of US exporters, short- and medium-termexport-credit insurance to US exporters and lenders, and medium- and long-term loans and loanguarantees to foreign buyers of US goods and services.

Ex-Im Bank carries the full faith and credit of the US government. The Bank complies with the OECDArrangement and has dedicated departments for structured finance (including project finance andcorporate risk) and transportation finance. Ex-Im Bank works with many institutions, includingcommercial banks, insurance brokers, state and local governments and private-sector organizations.

Ex-Im Bank fills gaps in standard commercial trade financing. It does not compete with private-sector insurers and lenders but rather complements their efforts and helps them expand theirbusiness in emerging markets.

Ex-Im Bank is legally prohibited from doing business in certain countries and is not open for all ofits programmes in other countries. Please refer to the Bank’s Country Limitation Schedule atwww.exim.gov. Military/defense exports generally are not eligible for support. Exceptions, on acase-by-case basis, include non-lethal military equipment earmarked mainly for civilian purposesor for drug interdiction.

Ex-Im Bank provides longer financing terms for exports of equipment and services in therenewable-energy and other environmental, medical equipment, transportation security, andsmall-business sectors. The Bank offers repayment terms of up to 18 years for US exports torenewable-energy, nuclear and water projects.

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Guarantees

Medium- and Long-Term Loans and GuaranteesEx-Im Bank direct loans and guarantees of commercial bank loans support both public- andprivate-sector foreign buyers’ purchases of larger US exports that require relatively longrepayment terms (generally two to five years and exceptionally seven years for medium-term,more than seven years for long-term) such as capital goods and services. Ex-Im Bank may alsocover payments on cross-border or international leases structured as finance leases. Loanguarantees are available for multiple sales financed under a credit-guarantee facility.

Loan guarantees cover 100% of principal and accrued interest on the financed amount. The totallevel of Ex-Im Bank support (either direct loan or loan guarantee) will be the lesser of 85% of thevalue of all eligible goods and services in the US supply contract, or 100% of the US content inall eligible goods and services in the US supply contract. A 15% cash down payment of the netcontract value from the international buyer is required.

Guarantees may support loans denominated in selected foreign currencies, including most hardcurrencies such as the euro and yen, and selected “soft” currencies such as the Brazilian realand South African rand. Requests for support may be submitted by the lender, exporter or buyer.The application is available at www.exim.gov. Buyers can be foreign companies, governmentsand agencies.

In addition to the rates charged by a lender, Ex-Im Bank charges two fees for its financing: acommitment fee and an exposure fee. For non-project finance transactions, the commitment feeis 0.125% per annum on the undisbursed balance of guaranteed loans, and 0.50% per annumon the undisbursed balance of direct loans. For project finance loans and guarantees, thecommitment fee is 0.50% for transactions with pre-completion support and 0.125% fortransactions without pre-completion support. Ex-Im Bank’s exposure fee is based on variablessuch as tenor, country risk, and buyer credit risk. An exposure fee calculator is available atwww.exim.gov.

Before approving transactions, Ex-Im Bank will take into account the beneficial and adverseenvironmental effect and economic impact of the export sale.

Structured Finance:Ex-Im Bank’s Project and Structured Finance Division provides long-term corporate and limited-recourse financing where repayment is based on project revenues, corporate guarantees andother types of structured financing. Local costs and ancillary services can be financed.Repayment terms are available for up to 12 years for project financing and up to 14 years forlimited-recourse project financing. Terms of up to 18 years are available for renewable-energy,water and nuclear transactions. Ex-Im Bank provides comprehensive coverage during projectconstruction. An amount equal to 30% of the US supply contract can be financed for local costs.Equity required, risk sharing by arranging and commercial banks, and recourse to projectsponsor or supplier all are determined on a case-by-case basis. Independent engineering, legal,insurance and financial advisory services are typically required for limited-recourse projectfinancing, the cost for which may be included as ancillary services eligible for Ex-Im Banksupport.

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Transportation Finance:Ex-Im Bank’s Transportation Division principally provides financing support for new commercialaircraft generally using an asset-backed finance lease structure. A maximum repayment term ofup to 12 years may be offered for new large commercial aircraft in conformance with the OECDArrangement. The Bank may allow the inclusion of spare parts, related ground equipment andtraining costs in sovereign-guaranteed transactions for new large commercial aircraft. In additionto its support for new large commercial aircraft, Ex-Im Bank provides support for used largecommercial aircraft, new and used executive aircraft, new and used general aviation aircraft, andnew and used locomotives and other types of rail-rolling stock.

Ex-Im Bank also supports transportation exports under its insurance programme.

Export-Credit Insurance:Ex-Im Bank short- and medium-term export-credit insurance protects exporters and lendersagainst the commercial and political risks of an international buyer defaulting on payment forcommercial or political reasons such as bankruptcy, war, or the inconvertibility of currency. WithEx-Im Bank’s insurance, exporters can offer more attractive credit terms to their customers andarrange bank financing through assignment of policy proceeds.

Cover may be provided in foreign currencies, including most hard currencies like the euro andyen, and selected soft currencies like the Mexican peso, Brazilian real and South African rand.Ex-Im Bank also supports transportation exports under its insurance programme.

Short-TermA lender or a U.S. exporter may apply for a short-term policy. Short-term insurance typicallycovers noncapital goods, components, raw materials, spare parts, and most services sold oncredit terms of 180 days or less, and capital goods, consumer durables and bulk agriculturalcommodities on credit terms up to 360 days. Under short-term policies, Ex-Im Bank assumes90% or to 95% of the commercial and political risks of buyer non-payment.

Short-term policies include multibuyer policies and single-buyer policies. Multibuyer policiesenable exporters to insure sales to all eligible international buyers to whom they extend ‘openaccount’ credit terms or an approved ‘reasonable spread’ of qualified buyers. For qualifying smallbusinesses, the Bank offers enhanced coverage including a no first-loss deductible, simplifiedpremium schedule, and a financing feature allowing the lender to advance on the insuredreceivables with limited risk. Single-buyer policies provide credit protection for shipments to onespecific buyer. Premium rates are based on tenor, type of buyer, and the buyer’s country.

Medium-TermA lender, a U.S. exporter, or a foreign buyer may apply for a medium-term policy. Medium-terminsurance covers longer-term financing to international buyers of capital equipment and services.Medium-term cover ranges between one and five years and up to seven years on an exceptionalbasis. Under the medium-term policy, Ex-Im Bank will insure up to 85% of the net U.S. contractvalue. A 15% down payment of the net contract value from the international buyer is required.

Working Capital GuaranteesEx-Im Bank’s working capital guarantees help mainly small and medium-sized US companiesobtain working capital loans from commercial lenders to fill export sales orders and to useexport-related inventory and accounts receivable as collateral to increase cash flow. This support

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provides US exporters with the liquidity to accept new business, grow international sales, andcompete more effectively in the international marketplace.

Ex-Im Bank’s working capital guarantee covers 90 percent of the loan principal and interest. TheBank has a list of pre-qualified commercial lender partners, called delegated authority lenders,that can expedite the loan process by committing Ex-Im Bank’s guarantee without prior Ex-ImBank approval. For a list of these lenders, please refer to www.exim.gov.

Working capital guarantees support the purchase of raw materials or supplies, related overheadcosts, and standby letters of credit serving as bid or performance bonds. The Ex-Im Bank-guaranteed working capital lines can be either transaction specific or revolving. They are securedby export-related accounts receivable and inventory (including work-in-progress) tied to anexport order. There is a 25% discount on multibuyer insurance premiums for using both theworking capital guarantee and insurance products.

ECA alliances/agreements:US Ex-Im Bank currently has signed 10 bilateral co-inancing/reinsurance framework agreementswith ECGD (UK), EDC (Canada), SACE (Italy), NEXI (Japan), Atradius (Netherlands), Hermes(Germany), Coface (France), ASHR’A (Israel), EFIC (Australia) and KEXIM (Korea).

Absent a framework agreement, Ex-Im Bank can consider transaction-specific co-financing/reinsurance requests on a case-by-case basis.

In addition to the countries which which Ex-Im Bank has framework agreements, Ex-Im Bank hasapproved one-off transactions involving EKF (Denmark); GIEK (Norway), H-EXIM (Hungary) andONDD (Belgium). Ex-Im Bank reserves the right to decide case-by-case whether to structuredeals as co-financing transactions.

United States of America



Banco de Seguros del EstadoLibertador 1465MontevideoUruguayTel: (+598) 2 908 9303Fax: (+598) 2 908 9288Website: www.bse.com.uy

Ownership Structure: 100% sovereign

Function:Provides short-term insurance

InstitutionBanco de Seguros del Estado provides insurance cover. Policies cover up to 80% for commercialrisks. No interest support is offered.

Banco de Seguros del Estado carries the full faith and credit of the government. The bank is notbound by OECD consensus and does not have a project finance department.

InsuranceBanco de Seguros del Estado is a government-owned bank which began operating an exportcredit insurance scheme in April 1997.

Application• Supplier may apply for a letter of interest, preliminary or final commitment.

Cover• Up to 80% of the eligible contract value can be insured for comercial risks.• Insurance covers declared or presumed insolvency, and delay in payment (six to eight

months).• Up to 80% of the insured’s whole turnover is available.• Insurance is only available for short-term commercial risks.• Cover is not provided in foreign currencies (except dollars).• Bills covered by insurance policies can be freely transferred.• Typical credit periods are between 30 days and 150 days, or, exceptionally 365 days.


Urug

uay





Fees• An administration fee of $100 is charged for each report received from the information

agencies.• Premia are paid up front and are charged on the total exposure.

UruguayExport Credit Agencies


UZBEKINVEST National Export-ImportInsurance Company (Uzbekinvest)2, А. Kadiriy StreetTashkent 100017UzbekistanTel: +998 (71) 235 78 01

+998 (71) 120 03 51Fax: +998 (71) 235 94 09E-mail: [email protected]: www.uzbekinvest.uz

Contacts:Mr. Fakhritdin Saidakhmedov, Director GeneralTel: +998 (71) 235 78 01E-mail: [email protected]

Mr.Jamshid Rizaev, Deputy Director GeneralTel: +998 (71) 120 03 60E-mail: [email protected]

Mr. Kamil Khasanov, General Manager, Export Risks & Investments Insurance Dept.Tel/Fax: +998 (71) 120 03 59E-mail: [email protected]

Mr. Maksud Yakubov, General Manager, Risks Management & Reinsurance Dept.Tel: +998 (71) 235 94 02, 120 03 72, 120 03 73E-mail: [email protected]

Mr. Denis Korotchenko, General Manager, Claims Dept.Tel: + 998 (71) 120 03 58E-mail: [email protected]

Ownership: 100% State-owned

Function:Provides general insurance, also acting as a national export credit agency of Uzbekistan topromote export operations by providing export credit insurance to Uzbek exporters andcommercial banks.

Uzbe

kistan



Institution

Uzbekinvest is the universal insurance company providing both general and export creditinsurance. Uzbekinvest is bound by OECD consensus and carries the full faith and credit of thegovernment.

Subsidiaries and branches:• ‘Uzbekinvest Hayot’ Life Insurance Company• ‘Uzbekinvest Sarmoyalari’ Investment Company• ‘Uzbekinvest Assistance’ Service Agency• ‘Uzbekinvest Eximinform’ Marketing Agency, and• 14 regional branches in all regions of Uzbekistan.

Insurance

Uzbekinvest provides a wide range of insurance products. They include all types of generalinsurance as well as ST/MT/LT export credit insurance such as:

Supplier’s Credit insurance, Contract Repudiation insurance (pre-shipment), Buyer’s Creditinsurance, Documentary credit/guarantee insurance, Advance payment insurance, Domesticcredit insurance, Investment insurance.

Application:• Lender or supplier may apply for a letter of interest and final commitment.

Coverage:• Up to 100% of political and commercial risks may be covered.• Insurance may be available for multiple sales finance under a single line of credit provided by

a bank to foreign bank or buyers.• Insurance for overseas investments is provided. Risks to cover include confiscation,

expropriation and nationalization.• The premium can be capitalized into the loan value.

Maximum insurance of export value (%):Buyers political commercialprivate 100 100public 100 100sovereign 100 100

Interest:Insurance may be provided for fixed-interest rate and floating-interest rate loans.

Fees:• No processing/application fee is charged.• Premium is paid upfront.• Premium is charged on total exposure.

UzbekistanExport Credit Agencies


London Office:Uzbekinvest International Insurance Company Ltd. (UIIC)

Address: The Chartis Building58 Fenchurch StreetLondon EC3M 4ABUnited Kingdom

Function: Political risks insurance only

Contact:Mr. Shavkat E. Inamov, Joint Chief ExecutiveTel: +44 (0)20 7954 8397Fax: +44 (0)20 7954 8872E-mail: [email protected]: www.uzbekinvest-london.com

Uzbe

kistan



La Mundial C.A.V. de Seguros de Crédito (La Mundial)Av. Romulo Gallegos.Edf RIV No 231er PisoLos Dos CaminosCaracas 1071VenezuelaTel: (+58) 212 211 00 50Fax: (+58) 212 211 00 79Website: www.lamundial.com.veEmail: [email protected]: @cescevenezuela

Contact: Alejandro Cabrera R.Tel: (+58) 212 211 00 53Email: [email protected]

Ownership structure: 87.05% private, 12.945% sovereign

Function:Provides short, médium and long-term insuranceInstitution

La Mundial CAV de Seguros de Crédito (La Mundial) provides insurance credit and bond cover.Policies cover up to 85% for commercial risks. No interest support is offered.

La Mundial does not carry the full faith and credit of the government. The company is not boundby OECD consensus. Commercial banks and government departments/agencies and privatefinancial agencies, together with Grupo CESCE database, provide the source for lending.

Insurance

La Mundial offers credit insurance cover for commercial risks for domestic sales and for exportoperations on a pre- and post-shipment basis. The maturities are up to one year and this can beextended on an annual basis. Political and extraordinary risk is also provided.

Application• Supplier may apply for a letter of interest, preliminary or final commitment.

Cover• Up to 90% of 100% of the eligible contract value can be insured in respect of political risk

cover and natural perils.• The premium cannot be capitalized into the loan value.• Insurance is available for short-term and medium-term commercial risks.

VenezuelaExport Credit Agencies


• Insurance is available for multiple sales financed under a single line of credit provided by abank to foreign banks or buyers.

• Cover is provided in foreign currencies only for export cover. Others risks covered in localcurrency.

• Bills covered by insurance policies cannot be freely transferred.• Residual risk does not have to remain with the lending bank, the supplier can carry the risk.

maximum coverage of export credit insurance (%)buyers political commercialprivate 90 85public 90 0

maximum coverage of domestic credit insurance (%) 90


Funding• Commercial banks and government departments/agencies can supply funding.

Fees• A processing/application fee is charged. The standard rate is $15.• Premiums are charged on a cash basis. They are charged on the CIF.

La Mundial also provides cover for Bond risk.

Vene

zuela



Development and M

ultilateral Finance Institutions (DFIs & M

FIs)The Citi World Official Agency Guide 2012-2013

CONTENTSDevelopment and Multilateral Finance Institutions (DFIs & MFIs)ADB (Asian Development Bank) 258AfDB (African Development Bank) 261Afreximbank (African Export-Import Bank) 264ATI/ACA (African Trade Insurance Agency 267BIO (Belgian Investment Company for Developing Countries) 270Bladex (Banco LatinoAmericano de Exportaciones) 271BSTDB (Black Sea Trade and Development Bank) 273CABEI (Central American Bank for Economic Integration) 277CAF (Corporación Andina de Fomento) 279CDB (China Development Bank) 281CDC (CDC Group) 282COFIDE (Corporación Financiera de Desarrollo) 283COFIDES (Compañía Española de Financiación del Desarrollo) 285DEG (Deutsche Investitions- und Entwicklungsgesellschaft) 287DHAMAN (Arab Investment and Export Credit Guarantee Corporation) 288EBRD (European Bank for Reconstruction and Development) 291EIB (European Investment Bank) 293Finnfund (Finnish Fund for Industrial Cooperation Ltd) 297FMO (Netherlands Development Finance Company) 299GuarantCo (Guarantees for Development) 301IADB (Inter-American Development Bank) 303ICIEC (Islamic Corporation for the Insurance of Investment and Export Credit) 308IFC (International Finance Corporation) 313ITFC (International Islamic Trade Finance Corporation) 315KfW (KfW IPEX-Bank) 317MIGA (Multilateral Investment Guarantee Agency) 319NIB (Nordic Investment Bank) 322Norfund (The Norwegian Investment Fund for Developing Countries) 325OeEB (Oesterreichische Entwicklungsbank) 327OFID (OPEC Fund for International Development) 329OPIC (Overseas Private Investment Corporation) 331PEFCO (Private Export Funding Corporation) 333PROPARCO 335SEK (Svensk Exportkredit ) 337SEP (Saudi Export Programme) 338SIMEST (Società Italiana per le Imprese all’Estero) 340SOFID (Sociedade para o Financiamento do Desenvolvimento) 342Swedfund (Swedfund International) 343Vnesheconombank (Bank for Development and Foreign Economic Affairs) 344


Asian Development Bank (ADB)6 ADB Avenue, Mandaluyong City 1550PhilippinesTel: + 632 632 4444Fax: + 632 636 2444Web: http://www.adb.org/Email: [email protected], [email protected]

General Information

The Asian Development Bank (ADB), based in Manila, is an international development financeinstitution whose mission is to help its developing member countries (DMCs) reduce poverty andimprove the quality of life of their people.

Established in 1966, it is owned by 67 members – 48 from the region. Aside from theheadquarters in Manila, there are 29 other offices around the world:• 23 resident missions in Asia• 2 sub-regional offices in the Pacific• Representative offices in Frankfurt for Europe, Tokyo for Japan, and Washington, DC for North

America• a special liaison office in Timor Leste

It has more than 2,800 employees from 59 countries.

Strategy 2020Under Strategy 2020, a long-term strategic framework adopted in 2008, ADB will follow threecomplementary strategic agendas: inclusive growth, environmentally sustainable growth, andregional integration.

ADB’s main instruments for providing help to its developing member countries are• policy dialogue• loans• technical assistance• grants• guarantees• equity investments

In addition, its triple-A credit rating helps mobilize funds for development.

Credit enhancement productsADB’s credit enhancement products (CEPs) are instruments intended to mobilize cofinancing andenhance financing partnerships. They are designed to reduce, eliminate, and/or better allocate a

ADB

Development and Multilateral Finance Institutions (DFIs & MFIs)


range of risks facing ADB’s commercial financing partners and to leverage ADB’s own capitalbase. CEPs support ADB’s developmental objectives by facilitating additional investment, trade,and capital flows into its developing member countries. CEPs are differentiated into two broadcategories: guarantees and syndications.

GuaranteesGuarantees allow ADB to assume commercial and/or political risks arising under debtinstruments provided by other financing partners. ADB guarantees may take the form of partialcredit guarantees (PCGs) or political risk guarantees (PRGs), but are not limited to such forms.Guarantees increase ADB’s risk exposure, but generally to a lesser extent than would be the caseunder an equivalent direct loan.

SyndicationsSyndications enable ADB to transfer some or all of the risk associated with a loan or guarantee toother financing parties. Syndications may be made through a variety of structures, including: (i)“Fronting” arrangements, which allow ADB to transfer or pass through all risks and shareassociated recovery rights with syndicate members. These include Lender of Record (LOR) andGuarantor of Record (GOR) arrangements; (ii) “Non-funded risk participation” arrangements,which enable ADB to transfer risk or assume the risk of other guarantee providers, and share anyassociated recovery with syndicate members; and (iii) “Sell-down” arrangements, which allowADB to fully pass on certain risks through transfers or assignments.

Trade finance programmeThe Trade Finance Programme (TFP) of ADB provides guarantees and loans to partner banks insupport of international trade.

Backed by its AAA credit rating, ADB works with over 200 partner banks to provide companieswith the financial support they need to engage in import and export activities in Asia’s mostchallenging markets. With dedicated trade finance specialists and a response time of 24–48hours, the TFP has established itself as a key player in the international trade community,providing fast, reliable, and responsive trade finance support during both economic downturnsand times of growth.

A substantial portion of TFP’s portfolio supports small and medium-sized enterprises, and manytransactions occur either intra-regionally or between ADB’s developing member countries. Theprogramme supports a wide range of transactions, ranging from commodities and capital goodsto medical supplies and consumer goods.

The TFP continues to grow exponentially, supporting billions of dollars of trade throughout theregion, which in turn helps create sustainable jobs and prosperity in Asia’s developing countries.

Credit guaranteeADB provides guarantees of up to 100% risk protection against nonpayment by approvedparticipating banks, in support of trade transactions. Through this support, the Credit Guarantee(CG) product establishes new partnerships between banks and companies, therefore increasingtrade and access to challenging markets.

ADBDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


Risk participation agreementFor banks with large and consistent trade finance volumes, ADB provides a maximum 50% riskprotection against nonpayment of a financial obligation issued by a bank in support of aninternational trade transaction. Unlike the CG product, the Risk Participation Agreement (RPA)provides risk protection on a portfolio basis, rather than on a transaction-by-transaction basis.The RPA provides partners with an innovative and highly efficient vehicle to manage portfolios oftrade assets, providing banks with the capacity to support more companies in challengingmarkets.

Revolving credit facilityADB provides revolving credit loans to eligible banks for on-lending to importers and exporters tofinance trade-related transactions. This product is most frequently used for pre-export financing.

ADB



The African Development Bank Temporary Relocation Agency (TRA)B.P. 323 1002 Tunis BelvédèreTUNISIA

Tel: (+216) 71 333 511Fax: (+216) 71 351 933Email: [email protected]

Website: http://www.afdb.org

The institution

The African Development Bank (AfDB or the bank) is a multilateral development bank whoseshareholders comprise 54 African countries and 24 non-African countries. Established in 1964, itofficially began operations in 1967. It is headquartered in Abidjan, Côte d’Ivoire; however,because of political instability in Côte d’Ivoire, the board of governors of the bank decided inFebruary 2003 to move the bank to its current temporary location in Tunis, Tunisia.

As the lead multilateral development finance institution in Africa, the AfDB has the mandate toenhance the social and economic well-being of its RMCs. The bank’s AAA rating allows it to on-lend to its borrowers, funds raised in international capital markets at favourable terms. Followingthe recent general capital increase approved in May 2010 that tripled the bank’s capitalresources to nearly $100 billion, today, the bank has the capacity to sustain a high level oflending. To this end and in line with the medium term strategy of 2008 – 12, the bank willincrease selectivity, with particular operational focus on infrastructure, governance, developing amore robust private sector, and higher education. Through investments in these areas, the bankwill contribute directly to regional integration, middle income countries (MIC) and fragile statesassistance, human development, and agriculture. Knowledge-generation, climate change andgender will be mainstreamed in all the institution’s operations.

Trade Finance Initiative

In response to the global financial crisis and recession of late 2008 and early 2009, the bankadded to its menu of products some shorter term counter-cyclical products in order to meet theemergent requirements of its regional member countries. These included an Emergency LiquidityFacility, which was discontinued in December 2010 and a Trade Finance Initiative (TFI) that is stillavailable to date. The bank established the TFI of $1 billion in 2009. The TFI comprises of TradeFinance Lines of Credit (TF LoC) of $500 million for short-term trade finance lines of credit and$500 million for the Global Trade Liquidity Programme (GTLP) in corporation with the

AfDBDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


International Finance Corporation (IFC). African commercial banks and development financeinstitutions that are engaged in trade finance are eligible for these facilities. The TF LoC hasfinancing with maturity of up to 3.5 years and can be reused until final maturity. Building on theexperience gained over the past couple of years, a comprehensive Trade Finance Programme isbeing developed and its implementation will start in 2013.

Other Financial Products

1. Standard Loan ProductsThe AfDB provides loans to its clients on non-concessional terms. The standard loan productoffered to sovereign and sovereign guaranteed clients is the Enhanced Variable Spread Loan(EVSL) which gives borrowers a high degree of flexibility to manage their interest rate risks. Theloan product offered to non-sovereign guaranteed clients is the Fixed Spread Loan (FSL).

The interest rate on the EVSL is comprised of a floating base (6-month Libor for US dollars andyen, 6-month Euribor for Euro and 3 month Jibar for Zar), a funding margin that is a function ofthe bank’s cost of funding relative to Libor, Euribor or Jibar computed every six month, and acontractual spread that was set at 60 bp with effect from January 01, 2011. The EVSL offers afree option to fix the floating base rate. The standard repayment period for sovereign andsovereign guaranteed loans is up to 20 years, including a capital grace period not exceeding 5years.

The interest rate on the FSL is comprised of a floating base rate (6-month Libor for USD andYEN, 6-month Euribor for Euro and 3 month Jibar for Zar) which remains floating until maturitydate or a fixed base rate (amortizing swap rate set at borrower’s request for disbursed loanbalances), plus a risk-based credit spread. Non-sovereign loans have standard repaymentperiods of up to 15 years including a capital grace period that does not exceed 5 years.

Other loan structures offered by the bank include parallel and A/B syndications, and localcurrency loans if the bank is able to fund efficiently in the local currency market. These loans areoffered under the FSL pricing framework with a cost pass through principle for local currencyloans to ensure that the overall cost of funds is compensated. Effective September 2011, fourAfrican currencies (Egyptian pound, Kenyan shilling, Nigerian naira and Ugandan shilling) wereapproved as additional lending currencies of the bank.

2. Lines of CreditThe development of a dynamic small and medium-size enterprises (SMEs) sector in the continentis an important objective of the bank as is the development of private financial institutions (PFIs).To this end the bank offers lines of credit for loans to PFIs for on-lending to SMEs. The terms ofthe lines of credit specify the conditions under which bank funds will be provided to the PFI foron-lending. The credit risks of the sub-loans are borne by the PFIs.

3. Agency LinesThe bank makes ordinary capital resources available for SMEs under agency arrangements withlocal financial intermediaries. The selection of individual projects for bank support is largelydelegated to the intermediaries, which draw on bank resources to make loan or equityinvestments for the bank’s account in projects meeting pre-agreed criteria. As part of an agencyagreement, financial intermediaries are required to commit their own funds in each investment inparallel with the bank and to supervise the investee companies. The financial intermediary acts

AfDB



only in an agency capacity for the bank when investing the latter’s funds and assumes no risk inthis regards. The credit risk of the borrower is borne by the bank.

4. GuaranteesThrough the guarantee product, the bank leverages its preferred creditor status to assist eligibleborrowers to obtain financing from third party lenders, including local and international capitalmarkets. The bank provides partial risk guarantees to cover private lenders against the risk of agovernment, or a government owned agency, failing to perform its obligations vis-à-vis a privateproject, and partial credit guarantees to cover a portion of scheduled repayments of private loansor bonds against all risks. In both cases, the guarantees cover only part of the financing.

5. Risk Management ProductsThese are offered to enable borrowers to manage the financial risks associated with their loansfrom the bank, including interest rate, currency, and commodity price risks. These products assistborrowers to manage their balance sheets and their changing needs more efficiently over time.Risk management products such as interest rate swaps, currency swaps, interest rate caps andcollars are available to borrowers for the disbursed amounts at any time during and for the life oftheir loans.

6. Equity Participation or Quasi-Equity ProductsThe bank’s ability to provide risk capital through equity and quasi-equity investments is a keyelement of its resource mobilization role. The bank may invest in equity either directly orindirectly, through appropriate funds and other investment vehicles. Additionally, it may choose toinvest via quasi-instruments through redeemable preference shares, preferred stock,subordinated loans or convertible loans.

7. Other Financial ServicesThe bank may offer technical assistance through several grant funds to supplement its financialproducts for borrowers. The technical assistance is primarily focused on increasing theeffectiveness of projects by providing upstream support i.e. project preparation which is vital inensuring the best developmental and poverty-reducing outcomes for bank-financed projects.

AfDBDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


African Export-Import Bank (Afreximbank)Branch addresses:Harare BranchEastgate Building3rd Floor, Gold Bridge (North Wing),Harare, Zimbabwe

Postal address:P.O. Box CY 1600 CausewayHarare, ZimbabweTel: +263 4 7009 04-41; ?+263 772149 04 6/7Fax: +263 4 701 006

Abuja BranchNo. 2 Gnassingbe Eyadema StreetAsokoro, Abuja, NigeriaPostal Address: PMB 601 GarkiAbuja, NigeriaTel: +234 9 460 3160Fax: +234 9 460 31 87/89

Names of principals and their titles:Jean-Louis Ekra, President and Chairman of theBoard of DirectorsDr. Benedict O. Oramah, Executive VicePresident (Business Development and CorporateBanking)Denys Denya, Executive Vice President(Finance, Administration and Banking Services)Philip Kamau, Senior Director (Finance andTreasury)Dr. George Elombi, Executive Secretary andDirector of Legal ServicesSamuel Loum, Director (Credit)Dr. Francis Mbroh, Director (Research, Planningand International Cooperation)Kanayo Awani, Director (Trade Finance andBranches)Kofi Adomakoh, Director (Project and ExportDevelopment Finance)James Mwangi, Director (Risk Management)Robert Tomusange, Director (AdministrativeServices)Amr Kamel, Director (Banking Operations)

Main Physical Address:72(B) El-Maahad El-Eshteraky Street,(Opposite Merryland Park)Heliopolis, Cairo 11341, Egypt

Postal address:P. O. 613 Heliopolis,Cairo, 11757 EgyptTel: +20 2 24564100/1/2/3; ?Fax: +20 2 24564110; +20 2 24515008E-mail: [email protected];[email protected]: www.afreximbank.com

Afreximbank



Ownership structure:

Class A – target share 35%(Class A shareholders include African States, directly or indirectly through their respective centralbanks or other designated institutions; the African Development Bank; African continental,regional and sub-regional financial institutions and economic organizations).

Class B – target share 40%(Class B shareholders include national financial institutions and African private investors).

Class C – target share 25%(Class C shareholders include international financial institutions and economic organizations;non-regional financial institutions; and non-African or foreign public and private investors).

MandateThe African Export-Import Bank (the bank or Afreximbank) is engaged in trade finance and traderelated services. Its major objective is to facilitate, promote and expand intra- and extra-Africantrade by extending direct credit to eligible African exporters and financing pre-shipment andpost-shipment activities; extending direct short-term credit, and where appropriate, medium-term credit to African exporters and importers of African goods through African and otherfinancial institutions and trade intermediaries; promoting as well as financing non traditionalgoods and services; supporting South-South trade between Africa and other countries and intra-African trade; providing finance for export-generating African imports, including the imports ofequipment, spare parts and raw materials; promoting the development, within Africa, of a marketfor bankers’ acceptances and other trade documents; promoting and providing insurance andguarantee services including country risk guarantee facilities covering commercial and non-commercial risks associated with African exports and African payment risk; and providingadvisory and other corporate finance services in support of African deals.

Programmes and Facilities:The Bank’s programmes and facilities include:

African Trade Expansion and Diversification SchemeDual Recourse Facilities1.1 Note Purchase Programme

1.1.1 Credit Linked Notes1.1.2 Structured Notes

1.2 Receivable Purchase/Discounting Programme1.2.1 Forfaiting Facility1.2.2 Invoice/Receivable Discounting Programme1.2.3 Factoring and Receivables Management Facility1.2.4 Joint Bill Discounting/Financing and Refinancing Facility

Non-Dual Recourse Facilities2.1 Line of Credit Programme

2.1.1 Pre- and Post-export Financing2.1.2 Letter of Credit Confirmation and Refinancing Facility2.1.3 Export Credit Guarantees2.4.1 Reimbursement Guarantee Facility2.1.5 Correspondent Banking/African Letter of Credit Facility

2.2 Direct Financing Programme

Afreximbank



2.3 Syndications Programme2.4 Special Risks Programme

2.4.1 Country Risk Guaranty Facility2.4.2 Investment Guarantee Facility

2.5 Financial Future-Flow Pre-Financing Programme2.6 Local Currency Programme

2.6.1 Counter-Party Risk Guarantee Facility Related to Forward Exchange Congtracts2.6.2 Local Currency Loan Facilities

Export Development Scheme3.1 Export Development Programme3.2 Project-Related Financing Programme3.3 Supplier and Buyer Credits Programme3.4 Guarantee Programme Related to Obtaining Large Contracts3.5 Guarantee Programme in Support of African Government Commitments to Project Promoters3.6 ECA Loans Facilitation Programme3.7 Advisory Services/Investment Banking Programme3.8 Asset-Based Lending Programme3.9 Carbon Financing Programme3.10 Construction/Tourism – Linked Relay Facility (CONTOUR)3.11 African Correspondent Banking and Letter of Credit Confirmation Facility (AFRICORRBANKING)3.12 Country Programme3.13 Trade Information Programme

ApplicationThe bank’s support may be applied for either directly or through its trade finance intermediaries(TFIs) in member states. The bank’s TFI’s include central banks, commercial and merchantbanks, national export credit agencies, regional financial institutions, insurance companies,finance companies, export houses and large trading companies.

Financing Margin• Up to 75% of the underlying export contract for pre-export finance and up to 80% for post-

export finance.• Financing for pre- and post-export finance is provided for up to 360 days.• For letters of credit up to 100% of the invoice value can be covered, for up to 360 days; and• Up to 100% of an applicant’s total exposure for export credit guarantee can be covered, for

up to 12 months.

Pricing• Interest for pre- and post-export finance is linked to relevant Libor and it is related to country

risk and market conditions.• For letters of credit, charges are related to contract value, country risk and market conditions.• Facility and commitment fees also apply.

Contact:All official correspondence should be addressed to:The President, African Export-Import Bank (AFREXIMBANK)72(B) El-Maahad El-Eshteraky Street, (Opposite Merryland Park), Heliopolis, Cairo 11341, EgyptP. O.Box 613 Heliopolis, Cairo, 11757 Egypt

Afreximbank



African Trade Insurance AgencyATI Business Inquiries:Mr. Humphrey Mwangi,Senior UnderwriterE-mail: [email protected] [email protected]

ATI Membership and InvestorRelations:Mr. Cyprien Sakubu,Chief Investor Relations ManagerE-mail: [email protected] [email protected]

ATI Press Inquiries:Ms. Sherry Kennedy,Communications OfficerE-mail: [email protected] [email protected]

Our VisionTo transform Africa into a prime trade and investment destination

Our MissionTo turn African risk into opportunity by providing Insurance and Financial products, in partnershipwith the private and public sectors

FunctionWe provide short, medium and long term guarantees and insurance for both political andcommercial risks

Institution

The African Trade Insurance Agency (ATI) is an African-owned International Financial Institution. Itprovides or facilitates insurance, co-insurance and reinsurance to protect against credit,investment and political risks. ATI is able to insure projects against political and non-paymentrisks that have at least one arm of a transaction in any one of its African member countries. Toview the most recent list of members visit www.ati-aca.org

African Trade Insurance AgencyP. O. Box 10620, GPO 00100Kenya Re Towers, 5th FloorOff Ragati Road, Upperhill, Nairobi, KenyaTel: (+254) 20 272 6999/ 271 9727Fax: (+254) 20 271 9701Cell: (+254) 722 205 007/ 254 733 625 511E-mail: [email protected]: http://www.ati-aca.org

Senior Management:Mr. George O. Otieno, Chief Executive OfficerMr. Jef Vincent, Chief Underwriting OfficerMs. Toavina Ramamonjiarisoa, Chief Financial OfficerMr. Cyprien Sakubu, Chief Investor Relations Manager

ATI/ACADevelopment and Multilateral Finance Institutions (DFIs & MFIs)


Mandated to attract investments and increase trade within Africa, ATI has insured African tradeand investments valued at over $7 billion since its launch in 2001. ATI is the highest ratedinsurer in Africa with an ‘A Long Term’ rating issued by Standard & Poor’s.

Our products increase the availability of financial resources for trade, investment and otherproductive activities and mitigate the associated political, non-commercial and commercial risks.Combined, these outcomes reduce the cost of doing business in Africa.

Credit Rating from Standard & Poor’sLong Term Counter Party Rating: A/StableInsurer Financial Strength Rating: A/Stable

Ownership Structure

Member States:

Current Members:Burundi, Democratic Republic of Congo, Kenya, Madagascar, Malawi, Rwanda, Tanzania, Ugandaand Zambia

Prospective Members:Benin, Côte d’Ivoire, Djibouti, Eritrea, Gabon, Ghana, Liberia, Sudan, South Sudan, Togo andZimbabwe

Corporate Members:African Development Bank, African Reinsurance Corporation (Africa Re), Atradius Group, theCommon Market of Eastern and Southern Africa (COMESA), the Eastern Southern Trade andDevelopment Bank (PTA Bank), the PTA Reinsurance Company (ZEP Re), SACE Group.

Membership in ATI is open to all African Union States, all non-African States that support ATI’sactivities in Africa, Export Credit Agencies, International Development Financial Institutions,Regional Economic Organizations, Export Credit Agencies and Private Corporations.

Our PartnersATI partners with leading players with global operations and include: ACE, AIG, Atradius Group,Chubb, ECIC, EDC, EFIC, Euler Hermes, Lloyds of London Syndicates, MIGA, OND Ducroire, OPIC,SINOSURE, ICIEC and Zurich Financial Services Group. These partners enable it to increase theresources available to support African productive activities, maximize the synergistic benefits ofcooperation amongst insurers within the same risk market and integrate African risk mitigationoperations in line with best market practices.

Our Products• Credit insurance, which covers against non-payment due to insolvency and protracted default• Insurance policies issued include short-term whole turnover credit insurance (WTO-CRI) and

medium-to-long term single obligor credit insurance• Political risk insurance, which provides cover against expropriation, currency inconvertibility

and transfer restriction, war and civil disturbance (physical damage & business interruption),embargo, non-payment by a sovereign or sub-sovereign obligor, unfair calling of bonds andterrorism & sabotage; and

ATI/A

CADevelopment and Multilateral Finance Institutions (DFIs & MFIs)


• Surety bonds, specifically bid, advance payments, performance and customs & warehousingbonds. This is a new product range and thus ATI will assess and decide on a case by casebasis on the products we will issue or reinsure.

Main Transaction Eligibility Criteriaa) For Political Risk Insurance or Reinsurance

One part of the transaction must be located in at least one of our African member countries.

b) For Trade Credit Insurance involving trade transactions• International trade: Either the seller or buyer must be located in one of our African member

countries; and the foreign country’s regulations must allow ATI to offer cover to theirexporters

• Domestic trade: Both the seller and the buyer must be located in the same African membercountry

c) For Trade Credit Insurance involving financing transactions• Either the lender, borrower or project must be located in one of our African member countries

(for international trade); or• The lender, borrower and the project must be located in the same African member country

(for domestic trade)

All ATI transactions will be subject to environmental review and assessment and must complywith the environmental requirements of the concerned ATI Member State (or in the absencethereof, World Bank Group Environmental Guidelines)

Indicative Policy TermsPolicy Indemnity: Political Risk Commercial RiskPrivate: up to 100% up to 90%Public: up to 100% up to 95%Sovereign: up to 100% –

(incl. non-payment)

Policy Period: Up to 10 years (including pre-shipment periods of up to 12 months). No minimumtransaction size and price is based on risk.

ATI/ACADevelopment and Multilateral Finance Institutions (DFIs & MFIs)


Belgian Investment Company forDeveloping Countries (BIO)Avenue de Tervuren 188A – b41150 Brussels, BelgiumTel: +32 2 778 99 99Fax: + 32 778 99 90Website: www.bio-invest.beE-mail: [email protected]

Contact:Emmanuelle Liessens, Communications and Promotion OfficerTel + 32 2 778 99 97E-mail: [email protected]

Institution

BIO is a Development Finance Institution established in 2001 in the framework of the BelgianDevelopment Cooperation. It supports private sector expansion in developing and emergingcountries to achieve sustainable economic and social prosperity and alleviate poverty. BIOprovides long-term financing (equity, quasi-equity, loans, and guarantees) either directly orindirectly to enterprises, the financial sector and private infrastructure projects, as well as grantsfor feasibility studies and technical assistance programmes. BIO operates as an additionalpartner to the financial institutions and looks for projects with a balance between financial returnand development impact. BIO is a member of EDFI (European Development Finance Institutions).

BIO



Banco Latinoamericano de ComercioExterior (Bladex)Torre V, Business Park, Avenida La RotondaUrb. Costa del Este, Panama, Rep. of PanamaPO Box 0819-08730Tel: (+507) 210 8500Fax: (+507) 269 6333www.bladex.com

Function:Provides trade financing in Latin America and the Caribbean.

Institution

Banco Latinoamericano de Comercio Exterior (Bladex, is a specialized supranational bank,established in 1977 to finance foreign trade in Latin America and the Caribbean. Bladex, whichbegan operating in 1979, provides financing of US dollar-based (and increasingly of localcurrency) foreign trade transactions in the region.

Bladex has a New York agency and representative offices in Buenos Aires; Sao Paulo and PortoAlegre, Brazil; Monterrey and Mexico City, Lima, Bogota and a Commercial office in Miami. TheNew York agency is principally engaged in obtaining inter-bank deposits and providing foreigntrade loans.

Ownership

As of 30 June 30, 2012, central banks from 23 countries in the region, or governmental financialinstitutions designated by such countries, own an aggregate of 16.72% of Bladex’s outstandingcommon stock. Bladex’s remaining common stock is owned by commercial banks (6.68%) andinstitutional and retail investors (76.60%).

The latter is the result of public offerings of class ‘E’ common shares registered with the USSecurities and Exchange Commission and in the NYSE under the symbol BLX. Under specialagreement with the Panamanian nation during 1978, the bank was granted certain privileges bythe government of Panama, including an exception from the payment of income taxes inPanama. Bladex is considered a regional risk by the Federal Reserve Bank of the United States.

BladexDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


Business

The bank’s mission is to provide seamless support to Latin America’s foreign trade, whilecreating value for its stockholders. The bank is principally engaged in providing trade financing toselected commercial banks, middle-market companies and corporations in the region. Thebank’s lending and investing activities are funded by interbank deposits, primarily from centralbanks and financial institutions in the region, by borrowings from international commercial banksand, to a lesser extent, by sales of the bank’s debt securities to financial institutions andinvestors in Asia, Europe, North America and the region. The bank does not provide retail bankingservices to the general public, such as retail savings accounts or checking accounts, and doesnot take retail deposits.

Bladex intermediates in the financial and capital markets throughout the region, through mainlythe following business segments: The commercial division is responsible for the bank’s corebusiness of financial intermediation and fee generation activities. The majority of the bank’s loansare extended in connection with specifically identified foreign trade transactions. The treasurydivision is responsible for the bank’s liquidity management and investment securities activities,including management of the bank’s interest rate, liquidity, price and currency risks. The divisioncontrols deposits in banks and all of the bank’s trading assets, securities available-for-sale andsecurities held-to-maturity.

As a well-recognized market leader in the Latin-American foreign commerce space, Bladexprovides a unique window into the entire Latin-American Region by virtue of doing business innearly all its countries. Its risk profile is well balanced, with a focus on trade finance, a low riskasset class, and with the vast majority of its exposures concentrated in investment-gradecountries. Bladex conducts its business on the long-held basis of professional expertise andfinancial solidity, catering to reputable market participants. These elements, together with anattractive valuation, sustained business growth and profitability, and an attractive dividend yieldmake BLX a compelling investment.

Bladex



Black Sea Trade and Development Bank

Institution

The Black Sea Trade and Development Bank (BSTDB) is an international financial institutionestablished by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania,Russia, Turkey, and Ukraine. The BSTDB headquarters is in Thessaloniki, Greece. BSTDB supportseconomic development and regional cooperation by providing loans, credit lines, equity andguarantees to finance projects and trade transactions in the public and private sectors in itsmember countries. The Bank focuses on priority sectors that are of key importance for theeconomic development of its member-countries: energy, manufacturing, transport,telecommunications, support for small business and foreign trade, etc. The Bank also mobilizesfinancial resources to its countries of operations from outside the region, while mitigating the riskof private investors. The recently increased authorized capital of the bank is SDR 3 billion(approx. $4.85 billion),

BSTDB is rated Long Term Baa1 with positive outlook and Short Term P2 by Moody’s.

BSTDB Trade Finance Programme

ObjectivesBSTDB Trade Finance Programme provides broad range of most comprehensive products tofinance and promote trade of goods, produced in the Member Countries, within and outside theregion with the objectives;

i) to promote further development of the regional economic cooperation and increase thevolume of trade between the member countries;

ii) to assist member countries to diversify exports and to help improve competitiveness ofregional products, especially for capital goods; and

iii) to promote production and exportation of goods with increased value added content, togenerate foreign exchange and promote job creation.

BSTDBDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


Products

The following products are offered under the Trade Finance Programme of the BSTDB;

1. Export Finance Products• Pre-export Finance Facility• Single/Multiple Supplier Refinancing Credit Facility• Export Finance Facility Guarantee

2. Import Finance Products• Single/Multiple Buyer Credit Facility• Import Finance Facility Guarantee

3. Combined Product• Trade Finance Facility

For further details of the trade finance facilities; please refer to Trade Finance Programme ofBSTDB which you can find in the web site http://www.bstdb.org/trade.htm

Financial IntermediariesTrade finance business has been predominantly conducted through selected financialintermediaries (such as commercial banks, leasing companies, and development banks) withinthe framework of a credit facility agreement signed between the Bank and financial intermediaryfor the following reasons:

1. Most trade finance operations will normally require a financial intermediary to perform duediligence on the beneficiary (local supplier/exporter or buyer/importer) and assume thatbeneficiary risk.

2. Most individual trade finance transactions are small in size and direct BSTDB involvementwould be prohibitively expensive for the Bank.

3. Funding will be available for utilization of beneficiaries at all time during the effectiveness ofthe facility, while direct financing could be provided only after signing a loan agreement.

4. In the interest of facilitating economic development in member countries, the BSTDB supportslocal financial intermediaries and help them grow, rather than remove local financial institutionsfrom a transaction by operating directly with the beneficiary. The BSTDB intention is to work withlocal financial institutions and support their development and capabilities to provide betterservice and a broader range of financial products.

Selection and monitoring of the financial intermediaries has been made in accordance with aspecific guidelines on the basis of their experience, capacity and risk profile.

Methods of payments, which are eligible under trade finance operations, will vary depending onthe type of facility.

Co-financing may also be undertaken with other reputable, qualified financial institutions.

BSTDB



Minimum AmountThe bank typically considers trade finance operations through financial intermediaries of aminimum amount set at SDR 2 million (appx. $3.2 million). This minimum amount reflects thebank’s commitment to the SME sector and takes into account that some BSTDB eligible financialintermediaries in member countries are relatively small.

The bank also considers direct applications to finance exports or imports of interestedbeneficiaries of a minimum amount set at SDR 3.5 million (appx. $5.63 million).

TenorTrade Finance facilities can be either short -term with a tenor of up to 360 days or medium/long-term with a tenor of up to 5 years. In exceptional circumstances long-term tenors may beextended for up to 10 years.

Goods not coveredTransactions involving goods mentioned in the BSTDB Negative List of Goods (including theBank’s Environmental Exclusion List) will be excluded from financing.

ExposureWhile trade finance instruments can cover up to 100% of a transaction, the BSTDB willencourage risk sharing and co-financing when appropriate.

SecurityDepending on the risk involved, the bank may provide unsecured and secured trade financefacilities and may ask for different kinds of collateral, the transaction may require under soundbanking principles. Credit lines extended through financial intermediaries are unsecured if thetenor does not exceed 360 days.

Depending on the borrower the bank may provide uncommitted and committed facilities andhave exposure to either financial intermediary or exporter/importer. In order to effectively utilizethe credit facilities the bank will mostly provide committed loan facilities to financialintermediaries, while providing uncommitted financing for guarantee facilities to selectedfinancial intermediaries in the member countries. In the case of guarantee facilities the bank’sexposure will be calculated on the aggregate amount of guarantees issued and outstandingunder the facility.

PricingThe bank can offer fixed or floating interest rates for trade finance facilities, consisting of a baserate and a margin charged on the outstanding amount of the loan. In addition to above, fees andcommissions that will vary depending on the products will be charged.

On the other hand, guarantee fees will be charged as a percentage of the guarantee amount perannum and will vary depending on the risk involved.

BSTDBDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


Central American Bank for EconomicIntegration (CABEI)

Costa Rica regional officeAddress: 75 meters to the East of Fuente de laHispanidad, San Pedro de Montes Oca,San José, Costa RicaPBX: (506) 2076500Fax: (506) 2532161

Nicaragua regional officeAddress: Edificio Plaza España,Apartado 2099, Managua, NicaraguaPBX: (505) 2664120Fax: (505) 2664143

Institution

The Central American Bank for Economic Integration (CABEI) is the largest multilateral financialinstitution in Central America. CABEI offers a wide range of financial services and productssimilar to those of development, investment and commercial banks.

ObjectiveCABEI’s objective is to promote the economic integration and balanced economic and socialdevelopment of the founding members. As a regional financial organization, CABEI invest in fundsthat make debt or equity investments in public and private sectors. CABEI specializes inattracting and harnessing foreign resources, both complementary and additional to thoseprovided by other sources, in order to promote investment and development activities in itsspheres of action.

CABEI obtains funds for its operations from a number of sources, including banks, multilateralfinancial institutions, official aid agencies, and bonds issues on the private market.

MembershipCABEI is a legal financial institution under public international law. The members are, Guatemala,El Salvador, Honduras, Nicaragua, Costa Rica, Mexico, Argentina, Republic of China, Colombia,Spain, Panama and Dominican Republic.

Headquarters and Honduras regional officeAddress: CABEI Headquarters.Boulevard Suyapa, Tegucigalpa, HondurasPBX: (504) 2402243Fax: (504) 2402183

Guatemala regional officeAddress: 16 Calle7-44, Zona 9,Guatemala, GuatemalaPBX: (502) 24105300Fax: (502) 32311457

El Salvador regional officeAddress: Calle La Reforma # 130,Col. San Benito, San Salvador, El SalvadorPBX: (503) 22676100Fax: (503) 22676130

CABEIDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


Capital StructureCABEI’s authorized share capital of $2 billion consists of a single class of 200,000 shares, witheach share having a nominal value of $10,000. The founding members have subscribed anequal amount of shares totaling $1.02 billion in authorized capital. The remaining $980 million ofauthorized capital has been made available for non-regional members, of which $702.9 millionhas already been subscribed.

Strategic Areas

The bank centres its operations around three strategic areas: reducing poverty, regionalintegration and the competitive insertion of Central America in the global economy.

CABEI has been a pioneer in the backing of social programmes, developing economic, social,education, and health related institutions, in these countries. It has also been a promoter ofregional integration, poverty reduction and has brought support to the private sector, includingthe micro, small and medium sized enterprises.

Innovative Financial MechanismsDue to restrictions on increasing public debt, CABEI designed mechanisms in 2007 to facilitateresources for projects that impact significantly on a country’s development plans withoutinvolving adding public sector debt. Some of these new financing modes are BOT (Build, operateand transfer), BLT (Build, lease and transfer) and public works concessions.

CABE

IDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


Corporación Andina de Fomento (CAF)Ave. Luis Roche, Torre CAFAltamira, Caracas, 1060, VenezuelaTel: (+58) (212) 209 2111/2190Fax: (+58) (212) 209 2444 Email: [email protected]: www.caf.com

Ownership structure:99% owned by member countries1% by 22 private banks

Function:Provides financing

Institution

CAF is a Latin American financial institution established in 1970 with the aim of promotingsustainable development and regional integration. The institution promotes quality sustainablegrowth in the region by financing projects in the public and private sectors, as well as theprovision of technical cooperation and other specialized services. CAF, consisting of 18 countriesin Latin America, Caribbean, Europe and 14 private banks, is a major source of multilateralfinancing and a major generator of knowledge for the region. For more information visitwww.caf.com.

Headquartered in Caracas, CAF was established in 1970. At present, it has offices in BuenosAires, La Paz, Brasilia, Bogota, Quito, Lima, Madrid and Panama City. Its shareholders areArgentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Jamaica,Mexico, Panama, Paraguay, Peru, Portugal, Spain, Trinidad & Tobago, Uruguay, Venezuela, and 14private banks in the region.

Products and servicesCAF offers financial products and services to the governments of shareholder countries, and topublic and private entities located in these countries.• Loans• Co-financing and A/B loans• Structured finance• Guarantees• Investment banking and advisory services• Equity investments• Cooperation funds

FundingCAF borrows efficiently and competitively in the international capital markets through a fundingstrategy that aims to diversify sources of financing, mitigate interest rate and currency risks, andto adequately match the average maturities of its assets and liabilities.

CAFDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


The following factors have made CAF the highest-rated frequent issuer in Latin America:• Profitability• Excellent credit quality• Strong capitalization• Preferred creditor status• Continuous shareholder support• Broad client base

CAF also maintains a permanent presence in short-term capital markets, through variouscommercial paper programmes in the United States ($1 billion) and Europe ($1 billion) andpromissory notes in Spain (a500 million).

CAF



China Development Bank29 Fuchengmenwai StreetXicheng DistrictBeijing 100037P.R.China

Tel: +86-10-68306688Fax:[email protected]

FunctionCDB loans are divided into short-term loans (with maturity shorter than a year), medium-termloans (1-5 years) and long-term loans (longer than 5 years). For large infrastructure projects, thematurity period can be extended according to the needs of the relevant industries and projects.

The CDB sets interest rates in line with the unified stipulations made by the People’s Bank ofChina. For long-time customers who have maintained sound credit standing, interest rates canbe lowered appropriately within the range stipulated by the People’s Bank of China.

Institution

The bank’s primary purpose is to foster the economic development of China by providing long-term financing for policy-oriented and related projects in line with the government’s developmentstrategy and its industrial policies.

Consistent with their purpose as an instrument of China’s national economic developmentstrategy, their current principal activities focus on raising funds and mobilizing resources tosupport the development of industries encouraged by the central government. These industriesinclude infrastructure facilities, basic industries and pillar industries in China, such as railway androad transportation, power generation, telecommunication, petrochemical and chemicalindustries, urban public facilities and environmental facilities. Their lending activities endeavour tosupport the PRC government’s development strategy of seeking a balanced developmentbetween the coastal regions of China and the central and western regions and also endeavour toguide both the volume and structure of fixed asset investments in China. Although profitmaximization is not their goal under the special decree, the bank has made, and will continue tomake, efforts to achieve profitability in a cost-effective manner.

In the course of financing, CDB aims to promote construction of governance structure, enterprisesystem as a legal entity, cash flow management system and credit culture. It strives to become apioneer, pacesetter and vanguard in the construction of socialist market economic system, inorder to propel China’s overall, concerted and sustainable economic and social development.

CDBDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


CDC Group plcCardinal Place80 Victoria StreetLondonSW1E 5JLUnited Kingdom

Tel: +44 (20) 7963 4700Fax: +44 (20) 7963 [email protected]

www.cdcgroup.com

Ownership structure:CDC is a development finance institution, wholly-owned by the UK government.

Function:CDC operates as an emerging market investor with a focus on the poorer countries and regionsof south Asia and sub-Saharan Africa.

CDC’s objective is to invest in a commercially sustainable manner in the poorer countries of thedeveloping world and to attract other investors by demonstrating success and thereby increasingcapital flows to markets where there is a great need.

At present, CDC does not invest directly in portfolio companies but commits its capital to fundsmanaged by fund managers with detailed knowledge of local markets. Following a review in early2011, CDC was given more investment instruments to get capital to where it is most needed,including direct investments, debt investments and guarantees.

As of 31 December 2011, CDC had total assets of £2.6 billion including investments in 1,126portfolio companies in 74 developing countries through 84 fund managers.

CDC



Corporación Financiera de Desarrollo(COFIDE)Augusto Tamayo 160San IsidroLima, PeruTel: (+51) 1 615 4000Fax: (+51) 1 442 3374Email: [email protected]: www.cofide.com.pe

Ownership structure:Corporación Financiera de Desarrollo S.A. (COFIDE) acts as the Peruvian Government’sdevelopment bank. It is a mixed-capital company, 98.95% owned by the Republic of Peruthrough National Fund for the Financing of the State’s Business Activities (FONAFE), adependency of the Ministry of Economy and Finance, and 1.05% by Corporación Andina deFomento (CAF).

Institution

COFIDE operates as a development and investment bank dedicated to attracting financing from foreignentities, banks and capital markets, and re-lending to corporate entities and individuals, includingsmall businessmen and farmers nationwide, through Intermediary Financial Institutions (IFIs).

The Strategic Plan of COFIDE is mainly oriented to two business objectives:Support for Investment in Infrastructure and Productive Investment: Among the main initiatives inthis area is the development of financial structures to facilitate infrastructure investment andparticipation in investment funds to finance infrastructure projects and implementing newproducts and supply of credit to medium and long term, associated with administration of trusts,among others. Nowadays COFIDE is participating in the government initiative of setting up of theinfrastructure investment fund. Some of the projects that COFIDE is financing are conversion ofmatrix energy, renewable energies, national highways and public transport in the capital.

Micro and Small Enterprise Development sector: COFIDE contributes to develop new productsand services, while participating in investment funds to support this sector. It also providesassistance to IFIS in the implementation of new financial products and support in thestrengthening of the equity.

COFIDE also engages in trust fund activity, financial advice, business development services tosmall and medium enterprises, and risk management, among others. COFIDE’s clients includelocal banks and financing companies, savings and loans institutions, leasing companies,cooperatives, and other local development institutions.

COFIDEDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


Although it does not have the full faith and credit of the Republic of Peru, COFIDE enjoys fullsupport from the Peruvian Government given its strategic importance as the Government’sdevelopment vehicle.

The Company operates with administrative, economic and financial autonomy. As part of thePeruvian Banking System, COFIDE is regulated by the Peruvian Banking Superintendence (SBS).

COFIDE aims to support Peru’s economic and social growth through the promotion and supply ofinvestment resources. It complements the activities of the private national financial system andother investment-related institutions. COFIDE is particularly concerned with providing long-termfunding, as well as giving financial support to Peruvian exports and to small and microbusinesses.

Financing

COFIDE’s goal is to support economic and social development of the country through theinvestment promotion in small- and medium-scale businesses. The corporation’s broader socialpurpose is to encourage financial activities that support productive investment, trade finance andrural economic activities, as well as infrastructure projects. COFIDE offers programmes forfunding private investment in all productive sectors, working capital, special credit lines forforeign trade (pre- and post-shipping exports), loans and capitalisation programmes for thefarming sector and small enterprises.

Loans• Maximum financing of the investment required is up to 50% of the structure in the case of

infrastructure projects.• Short-term, medium-term and long-term.• Loans can be available in foreign and local currency.• Repayment term on loans: short-term up to 360 days, medium-term up to five year and

long-term more than five years.

Funding• Commercial banks: local and foreign banks.• Multilateral institutions and governmental agencies, indebtedness by type or purpose:

COFIDE as execution agency or lending to COFIDE directly.• Local Capital Market. COFIDE have in force a new bond issuance programme by $200

million being able to issue medium and long- term bonds in any currency and interest rateaccording to market conditions.

• In February 2012, COFIDE issued senior unsecured notes in the international bond market upto $400 million with 10-year tenor.

Rating• In February 2010 COFIDE obtained investment grade (BBB-) by both Fitch Ratings and

Standard & Poor’s rating agencies, becoming the first public institution to obtainedinvestment grade. This qualification has been upgraded in 2011 to BBB.

• Bond issue programmes in local capital market since 1999. COFIDE was granted an ‘AAA’institutional rating for the bonds issued in the First, Second and Third Corporate Bond issueprogrammes and with CP-1 for the First Short Term Instruments issue programme.

COFIDE



Compañía Española de Financiación delDesarrollo, COFIDES, S.A. Príncipe de Vergara, 13228002 MadridSpainTel: (+34) 91 562 60 08/745 44 80Fax: (+34) 91 561 00 15

Website: www.cofides.es

Contact: [email protected]

Ownership structure: Majority sovereign owned.

Function:Bilateral Development Finance Institution

Institution

Compañía Española de Financiación del Desarrollo, COFIDES S.A., is a state- and private-ownedcompany founded in 1988 that provides cost-effective medium and long term financial supportfor viable private direct investment projects in foreign countries where there is a Spanish interest.The ultimate aim is to conduct a profitable business that contributes both to host countrydevelopment and the internationalisation of Spanish enterprise and the Spanish economy.

The resources at COFIDES’ disposal to meet this dual objective include its own shareholders’equity, to back direct investment project located in emerging or developing countries, and theresources of the State-owned Fund for Foreign Investment (FIEX) and Fund for SME ForeignInvestment Operations (FONPYME), managed by COFIDES, which enables the company tofinancially support direct investment projects in any foreign country. COFIDES total financingcapacity exceeds 1,400 million euros.

COFIDES is majority owned (61%) by the Spanish government through different publicinstitutions, namely the Spanish Institute for Foreign Trade (ICEX), the Institute for Official Credit(ICO) and the National Innovation Enterprise (ENISA). The remaining 39% is held by the threelargest Spanish commercial banking groups (BBVA, Banco Santander and Banco Sabadell).

COFIDESDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


Financing

Equity investmentsCOFIDES can take minority and temporary equity stakes in the projects it supports throughordinary or preferential shares. There is always a put option agreement to sell these shares to theSpanish investors after a certain period of time.

COFIDES also offers quasi-equity products, such as subordinated or income participating loanswith the aim to reinforce the financial strength of the project by increasing the project company’sown resources.

LoansCOFIDES can also provide financial support to the projects through senior medium or long termloans.

Other supportCOFIDES counsels potential promoters to optimize the project financial scheme and gives adviceon project-related environmental matters. Through its branch office abroad in Mexico D.F(Mexico) it also provides counsel in the preinvestment stages on issues of different nature.Moreover, COFIDES makes available to promoters the experience acquired after more than 20years of operations and offers institutional support to the projects.

COFIDE

SDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


DEG – Deutsche Investitions- undEntwicklungsgesellschaft mbHKaemmergasse 22 Tel: + 49 221 4986-050676 Cologne Fax: + 49 221 4986-1290Germany E-Mail: [email protected]

Website: www.deginvest.de

Ownership structure: 100% owned by KfW Bankengruppe

DEG – Our business is developingDEG, member of KfW Bankengruppe, is one of the largest European development financeinstitutions. For 50 years, DEG has been financing and structuring the investments of privatecompanies in developing and emerging market countries.

DEG invests in profitable projects that contribute to sustainable development in all sectors of theeconomy, from agribusiness to infrastructure and manufacturing to services. The financial sectoris a further focus in order to facilitate reliable access to investment capital locally. DEG’s aim is toestablish and expand private enterprise structures in developing and emerging countries, andthus create the basis for sustainable economic growth and a lasting improvement in the livingconditions of the local population.

DEG’s programme offering includesStrategic planning• Information on possible types of finance• Advice on strategy and countries• Evaluation of business plans• Advice via local DEG offices• Arranging contacts with local authorities and institutions

Long-term finance• Structuring of tailor-made finance• Provision of various financing instruments• Arranging of additional finance from commercial banks or financial institutions• Finance from public programmes• Coordination of the complete finance package

Competent partnership• Establishment of suitable controlling instruments Financial Products• Mobilisation of additional finance • Equity capital• Analysis of weak points • Mezzanine finance• Restructuring • Long-term loans• Risk sharing with local bank • Guarantees

DEGDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


The Arab Investment and Export CreditGuarantee Corporation (Dhaman)

Contact:Fahad Rashid Al-Ibrahim,Director General.Tel: (+965) 24959501

Mohamed O. Chouari,Director, Operations Department.Tel: (+965) 24959503

Ownership structure:21 Arab countries and 4 multilateral Arabfinancial institutions.

Function:

Dhaman provides short, medium and long term insurance against commercial and noncommercial risks for investment and trade.

Institution

Dhaman commenced its operations in April 1974 as the first multilateral credit and investmentinsurer in the world. The Corporation is headquartered in the State of Kuwait and has a paidcapital of $ 201 million.

Objectives:Dhaman aims at promoting the flow of investments within the Arab countries and enhancingArab exports. To achieve its goals, Dhaman provides:• Insurance against non commercial risks for Arab and non-Arab investments in Arab

countries,• Insurance against commercial risks for domestic trade in Arab countries,• Insurance against both commercial and non commercial risks for Arab exports worldwide,• Insurance against commercial and non commercial risks for cross borders leasing and

factoring transactions,• Reinsurance cover to Arab export credit agencies both on facultative and quota share basis.

HeadquartersP.O. Box 23568 Safat 13096State of KuwaitTel: (00965) 24959000/555Fax: (00965) 24959596/7Email: [email protected]

Regional officeKingdom of Saudi ArabiaP.O.Box 56578, Riyadh 11546Tel: (00966) 14789280/70Fax: (00966) 14781195Email: [email protected]

DHAM

ANDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


Dhaman also undertakes the promotion of the flow of investments within Arab countries and Arabexports by carrying out activities which are ancillary to its main purpose. These activities weredeveloped into a set of investment services that fall into dissemination of information, investmentpromotion, human resources development, and providing technical assistance to the Arab andinternational institutions acting in the field of investment guarantee and export credit insurance.

Rating:Dhaman is rated AA stable outlook by Standard & Poor’s. The major rating factors are:• Very strong capitalization reflecting very high quality of capital and extremely strong risk-

based capital adequacy.• Strong financial flexibility• Clear and focused management strategy to develop and expand the company’s operations.• Strongly rated, geographically and industry diverse investment portfolio.

Risks insured:

1- Commercial risks:Bankruptcy or protracted default of the debtor.

2- Non commercial risks:Expropriation and nationalization:

Measures taken by the public authorities in the host country whereby the investor is deprived ofhis rights with respect to his investment and in particular measures related to confiscation,nationalization, expropriation and compulsory seizure.

Transfer restriction:Measures that prevent the investor from repatriating the principal of his investment or theremittance of his earnings.

Wars and civil disturbances:Military action emanating from a foreign source or from the host country that directly affects thetangible assets of the investor and all public civil disturbances such as revolutions, insurrectionsand acts of violence of public character.

Breach of contract:Inability of the investor to enforce a judicial decree or an arbitration award rendered in its favouragainst the Host Country.

Claims Waiting period:Dhaman pays compensation after one month in the event of debtor’s insolvency and after fourmonths for other cases of loss.

Compensation rate:The compensation paid by Dhaman to the insured ranges between 80% and 95% of the loss,depending on the nature of the materialized risk. Any amounts recovered after the payment ofcompensation are distributed between Dhaman and the insured in proportion to each party’spercentage of loss.

DHAMAN



Insurance policies:Credit insurance is offered under the following policies:• Whole turnover credit insurance policy• Specific transaction credit insurance policy• Documentary credit insurance policy• Letter of credit confirmation insurance policy• Buyer credit insurance policy• Factoring insurance policy

Investment insurance is offered under the following policies:• Investment insurance policy• Loan guarantee• Contracting equipment insurance policy• Leasing insurance policy

DHAM

ANDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


European Bank for Reconstruction and Development (EBRD)

One Exchange Square,London EC2A 2JN, United KingdomTel: (+44) 20 7338 6000Fax: (+44) 20 7338 6690Web site: www.ebrd.com

InstitutionThe EBRD is an international financial institution that supports projects in and from Central Europeto Central Asia. Investing primarily in private sector clients whose needs cannot be fully met by themarket, the Bank promotes entrepreneurship and fosters transition towards open and democraticmarket economies. The EBRD was established in 1991 following the collapse of communism, toaid the transition from centrally planned to market economies in Central and Eastern Europe andthe CIS. The EBRD is owned by 63 shareholders: 61 countries, the European Investment Bank andthe European Community, and operates with a 20 billion in authorised capital.

The EBRD’s Trade Facilitation ProgrammeThe aim of the programme is to facilitate intra-regional and international trade in the EBRD’scountries of operations. The programme is designed to meet the particular demands of Centraland Eastern Europe and the Commonwealth of Independent States (CIS).The Bank issues its guarantees in favour of international confirming banks to guarantee all orpart of the obligations of local issuing banks arising under eligible trade finance transactions.Benefits of the programme are as follows:·• The EBRD extends its cover to letters of credit, standby letters of credit, advance payment

bonds and other forms of payment guarantees, bills of exchange and promissory notes fromissuing banks.

• The EBRD guarantees extend up to 100% of the face value of the underlying trade financeinstruments.

• All trade finance lines provided to issuing banks are uncommitted and can be amended orcancelled by the EBRD at any time. No commitment fees are charged to the issuing banks.

Eligible institutionsThe programme is open to issuing banks registered in all the EBRD’s countries of operations,including banks with majority foreign ownership and subsidiaries of foreign banks. Banksthroughout the world are invited to join the programme as confirming banks.

Transactions coveredEBRD guarantees may be applied to the following transactions associated with exports from orimports to the bank’s countries of operations:• Confirmation by the confirming bank of documentary letters of credit or standby letters of

credit from the issuing bank.• Issuance of advance payment bonds and other forms of payment guarantees by the

confirming bank on the basis of counter-guarantees from the issuing bank.

EBRDDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


• Discount or similar refinancing by the confirming bank of trade-related promissory notes orbills of exchange issued, or guaranteed by, the issuing bank.

Goods coveredEBRD guarantees may be issued for imports and exports of any types of goods or commodities,other than:• Armaments and munitions• Tobacco and tobacco products• Hard liquor (greater than 12% per cent alcohol by volume)• Products prohibited for import to, or export from, the relevant countries by applicable law or

international convention.

EBRD guarantees• Cover commercial and political risk of non-payment by the issuing bank• Do not assume any risk of the exporter or importer• Can be issued in any freely convertible currency in the amount of up to 100% of the nominal

value of the guaranteed instrument.

The application process• EBRD guarantees may be requested by the issuing bank or by the confirming bank.• Details of the transaction should be discussed with EBRD trade finance staff before a formal

guarantee request is submitted.• Where the confirming bank has requested the guarantee, a confirmation from the issuing

bank will be sought.• The EBRD will not be involved in the processing of shipment documents, which will be

handled between the confirming bank and the issuing bank.

Pre-export finance advancesThe EBRD also provides short-term revolving loans to banks in its countries of operations. Theseare structured to fund pre-export finance advances provided to local companies.

Fees• The EBRD will charge a guarantee fee, or interest in the case of pre-export advances. This

will depend on the agreed market rate and tenor of the EBRD exposure.• No commitment fee is charged to issuing banks.• Generally, lower fee rates will apply for transactions where risk is shared by confirming banks.

Large and/or complex transactionsThe EBRD welcomes proposals related to trade finance transactions that, as a result of their size,complexity, or other factors, cannot be readily financed within the programme. The preferredtargets for this type of EBRD support include equipment, commodities and commodity-basedindustries, raw materials manufacture, basic consumer goods, agricultural produce, constructionmaterials and pharmaceuticals.

EBRD countries of operationsAlbania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, CzechRepublic, Estonia, FYR Macedonia, Georgia, Hungary, Kazakhstan, Kyrgyz Republic, Latvia,Lithuania, Moldova, Mongolia, Montenegro, Poland, Romania, Russian Federation, Serbia, SlovakRepublic, Slovenia, Tajikistan, Turkey, Turkmenistan, Ukraine and Uzbekistan.

EBRD



European Investment Bank (EIB)98-100 boulevard Konrad AdenauerL-2950 LuxembourgTel: +352 43 79 1Website: www.eib.org

Communication and Information DepartmentInfoDeskTel.: +352 43 79 22000Fax: +352 43 79 62000Email: [email protected]

Role and organisation of the EIBThe task of the European Investment Bank (EIB), the European Union’s financing institution, is tocontribute towards the integration, balanced development and economic and social cohesion ofthe member countries. To this end, it raises on the markets substantial volumes of funds which itdirects on the most favourable terms towards financing capital projects according with theobjectives of the Union.

Outside the Union the EIB implements the financial components of agreements concluded underEuropean development aid and cooperation policies.

Projects & Loans

• The EIB offers various financing facilities to support projects, depending on eligibility andproject category.

• The EIB attaches special importance to the appraisal of projects• The Projects to be Financed list discloses new projects which have reached an advanced

stage in the discussions on possible EIB involvement.• The complete list of signed contracts is published under the Projects Financed section.• Operations Evaluation provides information on the self evaluation process in the bank.

Financing facilities• Loans: granted to viable capital spending programmes or projects in both the public and

private sectors.• Individual loans: provided to viable and sound projects and programmes costing more than

a25 million which are in line with EIB lending objectives.• Intermediated (global) loans: credit lines to banks and financial institutions to help them to

provide finance to small and medium-sized enterprises with eligible investment programmesor projects costing less than a25 million.

EIBDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


• Technical Assistance: provided by a team of expert economists, engineers and sectoralspecialists to complement EIB financing facilities.

• Guarantees: available to a wide range of counterparties, e.g. banks, leasing companies,guarantee institutions, mutual guarantee funds, special purpose vehicles and others.

• Venture Capital: requests for venture capital should be addressed directly to an intermediary.See www.eif.org to obtain the list.

• Microfinance: granted to professional and socially-committed microfinance intermediaries,such as microfinance institutions and microfinance investment vehicles both inside andoutside Europe. Transactions in microfinance take various forms (loans, equity, guaranteesand technical assistance).

Individual loans

How to apply?Requests for individual loans can be addressed directly to the EIB, without specific formalities,either to its headquarters in Luxembourg, or to one of its external offices.

Who can borrow?Promoters in both the public and private sectors, including banks. International bank guaranteesmight be required to cover the commercial risks of the borrower for private sector borrowers.

For what amount?To be agreed directly with the EIB if capital investment project exceeds a25 million and up to50% of the investment costs.

What maturities?In the industrial sector up to 12 years, and for infrastructure projects 20 years, or more inexceptional cases.

What currencies?In euro, the currencies of EU Member Countries not participating in the euro area, but also inother currencies, such as US dollars, yen, Swiss francs, a Central or Eastern European currencyor South African rand, depending on the borrower’s preferences. Loans may be disbursed in oneor more currencies.

What rates?Fixed, variable or revisable rate. EIB cost of funds are generally very attractive, due to AAA statusof the Bank. This is transferred to the borrowers with an additional administrative mark-up ontop.

Repayment:Normally semi-annual or annual payments. Grace periods for capital repayment may be obtainedfor the construction phase of the project. Bullet loans are also possible.

Fees:Generally, neither processing, commitment nor any other fees are charged.

EIB



Intermediated (global) loans

How to apply?Requests for credits financed in the framework of global loans should be addressed directly toone of the intermediary banks and financing institutions, which operates on the national, regionalor local level.

Who can benefit from the proceeds of global loans?Local authorities or SMEs. To qualify as an SME, a company must have fewer than 250employees; an annual turnover not exceeding a50 million; and an annual balance sheet total ofup to a43 million.

For what projects?New capital investment projects worth up to a25 million, undertaken by SMEs or, in the case ofsmall infrastructure projects, by local authorities.

What type of investment?Corporate investment, especially by small and medium-sized industrial and service companies,investment in advanced technologies, R&D projects, rational use of energy, environmentalprotection, water supply and sanitation projects, other infrastructure projects, particularly inregional development areas.

For what amount?A maximum of a12.5 million and up to 50% of the investment costs.

Loan period, interest rates, repayment, currencies, guarantees,provisions/fees:Determined by the respective EIB partner bank. Maturities typically range between 5 and 12years. Lending decisions under these schemes remain with the financial intermediaries.

How to apply?Directly to one of the intermediary banks and financing institutions, which operate on thenational, regional or local level.

EIBDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


Finnish Fund for Industrial Cooperation Ltd.(Finnfund)P.O. Box 391FI-00121 HelsinkiFinlandTel: +358 9 348 434Fax: +358 9 3484 3346Website: www.finnfund.fi

Ownership structure:Finnfund is owned by the State of Finland 87.1 %, Finnvera 12.8 % and Confederation ofFinnish Industries EK 0.1 %.

Function:Risk financing for private projects in emerging markets.

Finnfund is a Finnish development finance company that provides long-term investment loansand risk capital for private projects in developing countries and Russia. We support profitableprivate projects in challenging markets where commercial financing is hard to obtain.

Projects with links to FinlandFinnfund invests mainly with Finnish companies but we also finance their partners such as long-term customers, suppliers, subcontractors and companies that license technology. We typicallyfocus on projects involving advanced but commercially proven technology that gives our clients acompetitive edge while contributing to economic and social development in target countries.

Most of our investments are in manufacturing but we also invest in other sectors such astelecommunications, forestry, renewable energy and health services. Our financing is not tied toFinnish exports but the project should involve a Finnish interest. In selected cases we co-investwith other development finance institutions in projects that do not directly involve Finnishbusiness but that generate significant environmental or social benefits.

We are particularly keen to pursue co-investment opportunities in countries that are Finland’sdevelopment cooperation partners (Mozambique, Tanzania, Ethiopia, Zambia, Kenya, Nicaragua,Vietnam, Nepal, Egypt, Namibia and Peru).

Market terms and minority stakeOur financing is on market terms. In addition to long-term investment loans, we can make equityinvestments and provide customers with subordinated loans or other mezzanine financing.

Regardless of the form of finance, we always participate as a financial investor with a minoritystake.

Finnfund also manages a business partnership programme, Finnpartnership, on behalf of theMinistry for Foreign Affairs of Finland. Finnpartnership provides financial support for Finnishcompanies’ projects in developing countries. It also channels business partnership initiativesfrom developing countries to companies in Finland and vice versa.

FinnfundDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


Financial instruments

Equity financingFinnfund can make equity investments as a minority shareholder. Its equity participation isdetermined case by case, but is generally no more than 30 percent of the capital of the companybeing financed. Exit terms are negotiated prior to committing funds.

Investment loansFinnfund grants medium to long-term investment loans for the establishment or expansion ofactivities. Our share can cover about one-third of the project’s total financing requirement. Theinterest rate on investment loans depends on the project and the country risk, as well as on loancollateral, the length of any grace period and the repayment period. Maturities and grace periodsare tailored to suit the project. Loan currency is usually dollar or euro. In many countries, interestpaid to Finnfund is exempt from withholding tax which is a noticeable benefit to our client.

Mezzanine financingDepending on the capital needs of the project, Finnfund can arrange financing with mezzanineinstruments. These include unsecured subordinated loans, preferred shares and convertiblebonds.

Guarantees

In exceptional cases Finnfund can grant guarantees, for example to facilitate clients’ access tofinancing in local currency.

Finnfund



Netherlands Development Finance Company(FMO)Anna van Saksenlaan 712593 HW The HagueThe NetherlandsTel: +31 70-314 96 96Fax: + 31 70-324 61 87E-mail: [email protected]: www.fmo.nl

Ownership structure:51% owned by the Dutch state and 42% by Dutch banks. The remaining shares (7%) areheld by the two largest trade unions in the country and about 120 companies and privateinvestors.

Function:The Netherlands Development Finance Company (FMO) is the international development bank ofthe Netherlands. FMO invests risk capital in companies and financial institutions in developingcountries. FMO is one of the largest bilateral development banks worldwide. Thanks in part to itsrelationship with the Dutch government, FMO is able to take risks which commercial financiersare not – or not yet – prepared to take. FMO’s mission: to create flourishing enterprises, whichcan serve as engines of sustainable growth in their countries.

FMO is active works in approximately 40 countries in Africa, Asia, Central Europe and LatinAmerica, but its country geographical profile is always shifting, as a result of its aim to be‘additional’ to the market (see section on Policy Principles below). FMO’s investments areprovided on an untied basis as FMO operates fully independent of Dutch interests.

Main products:Loans, mezzanine financing, third party guarantees and equity investments. Loans andguarantees represent the vast majority of activity. There is however an increased use ofmezzanine financing and equity investments. FMO also manages several development funds andsubsidy programmes funded by the Netherlands government.

Policy principles:The mandate from the Dutch government, sets the following operational policy principles forFMO:• Catalyst: aim at maximizing the flow of finance to emerging markets by encouraging the

participation of other private banks and investors. With a reputable development bank as apartner, commercial parties are more inclined to take on an investment risk.

• Additionality: provide financial services that the market is unable or unwilling to provide insufficient amounts or under reasonable conditions. FMO thus supplements the role of themarket as it can go beyond the point where other parties are forced to stop.

FMODevelopment and Multilateral Finance Institutions (DFIs & MFIs)


• Sustainability: adhere to the principles of sustainability in the broadest sense, including socialand environmental policy and corporate governance.

Credit strength:FMO’s key credit strengths and its AAA/ A1+ ratings by S&P, with stable outlook, are derivedfrom the state support, FMO’s strong public role as the Dutch government’s primary vehicle forpromoting private sector growth in developing countries and the company’s sound financialhealth.

Countries, sectors & partners:FMO primarily targets ‘developing countries’, those that are classified by the World Bank as lowand medium income economies. The choice is determined by the added value FMO can provideand by factors such as a reasonably stable political situation, a receptive entrepreneurial climate,the scope of the private sector and the opportunities for FMO to develop its activities. As a result,the list is subject to regular review. Separate lists apply for the funds and programmes executedwith funds from the Dutch government.

FMO concentrates its activities on three sectors with the largest proven development impact: thefFinancial sector (banks & financial institutions including those aimed and at micro- and smallenterprises, , capital markets), developing access to energy and infrastructure (, telecom, roads &transport) and agribusiness, food and water.

A crucial success factor of FMO is the cooperation with various partners, including local parties,fellow development finance institutions and commercial banks and businesses.

Preferred creditor status:FMO enjoys a special status in many of the countries in which it is active. As a bilateraldevelopment finance institution, it has as de facto preferred status as it has never beenrequested to participate in new loan funding to debt-rescheduling programmes, nor has any FMOloan been included in a general debt rescheduling or restructuring of a country’s foreign debt.

FMO



GuarantCo20 Gresham StreetLondon EC2V7JEUKwww.guarantco.com

ContactChris Vermont, Head of Debt Capital MarketsTel: +44 20 3145 8601Email: [email protected].

Douglas Bennet, DirectorTel: +44 20 3145 8602Email: [email protected]

Function:GuarantCo is a new multilateral entity setup to help in the development of physical infrastructureas well as local capital markets in low and lower middle income countries, by providing localcurrency guarantees to credit enhance local currency infrastructure related debt for the private,municipal and parastatal sectors.

Ownership and managementGuarantCo’s sponsors are the governments of Sweden, Switzerland and UK (through the PrivateInfrastructure Development Group) and the Netherlands (through FMO). Key decisions are madeby a Board of independent directors appointed by the sponsors.

The principal point of contact for GuarantCo is Frontier Markets Fund Managers (FMFM) inLondon, which is responsible for originating, structuring and negotiating transactions, theselection and recommendation of investments to the Board of GuarantCo, the monitoring ofGuarantCo’s portfolio and the development of GuarantCo’s products.

Investment policy

GuarantCo’s policy and operational guidelines are drafted to enable GuarantCo to be as flexibleas possible in performing its function. Support is untied.

Investment size, cover and tenorCover for any single transaction is normally limited to a minimum local currency equivalent of $5million and a maximum equivalent of $20 million. Larger amounts can also be arranged byGuarantCo through syndication. GuarantCo can provide cover of up to 50% of a company’s debt(but up to 100% of a Lender’s exposure) and actively seeks risk sharing opportunities withcommercial banks, ECA’s, DFI’s and MLA’s. It can cover senior, subordinated or mezzanine

GuarantCoDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


financing through partial credit and partial risk guarantees, first loss guarantees, tenor extension,maturity strip or liquidity guarantees. Maximum tenor is 15 years.

Eligible CountriesGuarantCo can support projects in all low income and lower middle income countries in Africa,Asia, Latin and Central America and the Caribbean, as listed in columns I, II and III on the “DACList of ODA Recipients”.

Eligible Companies/Sectors• Special purpose vehicles or project companies• Private operating infrastructure companies• Parastatal or public corporations• Municipalities.• Energy supply, including generation, transmission and distribution• Water/waste services• Transportation• Telecommunications• Gas transportation, distribution and storage• Urban infrastructure• Mining, provided the financing is for related infrastructure services• Other activities that impact positively on development including the manufacturing of

components used in infrastructure (such as steel and cement)

In general, GuarantCo will support the construction of new facilities or the expansion orrefurbishment of existing facilities. In addition, GuarantCo can support the refinancing of existingfacilities where cross border debt is replaced by local financing.

Social and Environmental ImpactAll of the projects in which GuarantCo invests must adhere to local and internationalenvironmental, social and health and safety standards.

PricingGuarantCo prices its products on a risk adjusted return basis. It does not seek to compete withprivate sector sources of risk taking and therefore is unlikely to be involved in transactions whereguarantee products are priced below 3.0% pa.

Investment procedureGuarantCo has a streamlined investment approval process, involving essentially two stages:• Initial ‘New Business’ submission by FMFM to GuarantCo’s board.• Due diligence and negotiation of a term sheet by FMFM with the client, followed by full credit

submission to GuarantCo’s board.

The board is able to convene on an ad hoc basis so as to facilitate compliance with commercialtimetables.

GuarantCo



Inter-American Development Bank (IADB)Inter-American Development Bank1300 New York AvenueWashingtonDC 20577Public Information: (+1) 202-623-2096E-Mail: [email protected]: www.iadb.org

Contact: John Ferriter, Office of External Relations

Ownership Structure:Forty-eight (48) member countries own the Inter-American Development Bank (IADB): 26Latin America and Caribbean borrowing member countries, 22 non-borrowing MemberCountries. Over 50% of the voting share is composed of borrowing member countries.

The IADB is owned by 48 member states, of which 26 are borrowing members in Latin America andthe Caribbean. Each member country’s voting power is based on its subscription to the institution’sordinary capital (OC) resources. To become a regional member, a country needs prior membership tothe Organisation of the American States. To become a non-regional member, a country needs to be amember of the International Monetary Fund. A second basic requirement in both cases is thesubscription of shares of the ordinary capital and contribution to the fund for special operations.

Function:The IADB helps foster sustainable economic and social development in Latin America and theCaribbean through its lending operations, leadership in regional initiatives, research andknowledge dissemination activities, institutes and programmes through long-term developmentfinancing. The IADB assists its Latin American and Caribbean borrowing member countries informulating development policies and provides financing and technical assistance to achievesustainable economic growth and increase competitiveness, enhance social equity and fightpoverty with emphasis on social cohesion and providing more opportunities for the majority,modernize the state, support the private sector and job creation, and foster free trade andregional integration.

Partnering with clients, the IADB seeks to eliminate poverty and inequality, and promotessustainable economic growth. The bank supports clients in the design of projects, and providesfinancing, technical assistance and knowledge services to support development interventions.

Institution

The IADB is the oldest and largest regional multilateral development financial institution in theworld. The bank was formally created in 1959, when the Organisation of American States draftedthe articles of agreement establishing the Inter-American Development Bank.

By the end of 2011, the IADB has approved $207 billion in loans and guarantees to financeprojects with investments totalling over $438 billion, as well as $4.8 billion in grants andcontingent-recovery technical cooperation financing.

IADBDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


Throughout the years, the IADB has added new member countries and it increased its capitalnine times. These actions have allowed the IADB to boost support for poverty alleviation andother development programs that have helped transform Latin America and the Caribbean.Although much remains to be done, the region’s social indicators have improved significantly insuch areas as literacy, nutrition and life expectancy. Under the terms of the ninth general capitalincrease, endorsed by its board of governors in July 2010, the bank would be able to lend, onaverage, approximately $12 billion per year, double its pre-crisis levels.

Once the implementing resolutions are approved by the member countries, the capital increasewould also pave the way for the IADB to forgive all of Haiti’s outstanding debt with the Bank andprovide the country with more than $2 billion in grants over the next decade. Loans will supportprogrammes to promote social policy for equity and productivity; infrastructure forcompetitiveness and social welfare; institutions for growth and social welfare; regional and globalinternational integration; and environmental protection, response to climate change andenhanced food security. Only countries of Latin America and the Caribbean that are members ofthe IADB are eligible for loans and grants.

In 2011, approved lending and grants totalled $10.9 billion. In that year (2011), the bankapproved a program of 167 projects with a total of $10.9 billion in funding. This programmeincluded 142 investment projects for $9.1 billion, and seven operations totalling $241 millionapproved under the IADB grant facility. In addition, 25 policy-based loans were approved for $1.7billion. On that amount, $1.6 billion from ordinary capital, $62 million from the Fund for SpecialOperations (FSO), and $35 million from the IADB grant facility for Haiti.

On overage, approvals have increased around 100% in the last five years, in relation to theresults for the preceding five-year period, increasing from average annual approvals of $6.1billion for the period 2002-2006, to $11.9 billion during the period of 2007-2011.

Bond sales:The IADB’s bond issues have averaged $11.1 billion annually in the past five years. The bank’sdebt rating is AAA, the highest available. Principal markets for IADB bonds currently are Asia,Europe and the United States, while the main purchasers of bonds are central banks, pensionfunds, investment funds and commercial banks.

Sovereign-Guaranteed Financing

Amortization periods of ordinary capital loans to the public sector range from 15 to 25 years,with a 3- to 5-year grace period. Ordinary capital interest rates reflect the costs incurred by theIADB in borrowing funds plus charges and spreads to cover administrative costs.

Public sector loans from ordinary capital are available at variable lending rates in US dollars,euros, Japanese yen or Swiss francs. Most loans are made in US dollars. Local currencyfinancing is available on a limited basis through currency conversion of disbursements; directcurrency swaps and called guarantees. A floating lending rate based on Libor is available.

Concessional loans Fin the form of a blend of resources from the Ordinary Capital and the Fundfor Special Operations are available to the least advantaged borrowing member countries:Bolivia, Guatemala, Guyana, Honduras, Nicaragua and Paraguay. Haiti receives public-sector

IADB



support exclusively in the form of grants. FSO loans have a 40-year maturity and a 10-year graceperiod, with the interest rate 1% during the grace period and 2% thereafter.

Procurement is handled by the executing agencies in the countries receiving the loans. The 26IADB field offices in all the borrowing countries monitor the bidding processes to ensure fairnessfor contracts resulting from bank loans.

In 2011, 62% of approved financing was focus on infrastructure and environment sectorprogrammes, 29% on strengthening of institutional capacity and finance, 9% on social sectorprogrammes, and 1% on integration and trade sector programmes.

At year-end 2011 the bank active portfolio of sovereign guaranteed projects in executioncomprised 591 operations with an undisbursed balance of $22.6 billion.

Application:Countries and sub-national public entities may apply for loans through IADB country offices inthe borrowing countries or through IADB headquarters. Private companies typically apply forloans through the structured and corporate finance department. Loans directly to sub-nationalpublic entities and private sector companies do not require sovereign guarantees.

Private Sector/Non-Sovereign Guaranteed Lending:The IADB’s structured and corporate finance department provides loans and guarantees forprojects without government guarantees to support companies in all sectors, including thefinancial sector and capital markets, infrastructure (energy, transportation, water and sanitation,and telecommunication), bio-energy, manufacturing and general services, agribusiness, tourism,oil and gas, and mining. Cumulatively, the IADB has extended $12.2 billion in private sector loansand guarantees and mobilised over $9.8 billion additionally in syndicated B-loans, which areprovided by financial institutions through agreements with the IADB.

The IADB can finance up to 25% (or up to 40% in smaller economies with limited access tocapital) of the project costs of greenfield projects, and up to 50% of the project costs forexpansion projects (subject to limits related to total capitalisation of the borrower), up to amaximum of $200 million (and in exceptional circumstances up to $400 million).

The IADB may also provide partial credit guarantees for up to 25% or political risk guarantees forup to 50% of the project costs, subject to a maximum of $200 million (and in exceptionalcircumstances up to $400 million).

Under its $1 billion Trade Finance Facilitation Programme (TFFP), the IADB provides trade loansand issues guarantees to cover documentary and stand-by letters of credit, promissory notes andother instruments used in the financing of international trade transactions. The TFFP currentlycomprises a network of 237 Confirming Banks belonging to 88 international groups in 53countries and 67 Issuing Banks in 18 countries in Latin America and the Caribbean with over$1.1 billion in approved credit lines. By participating in the TFFP network, banks are able tofurther expand their trade finance activities in Latin America and the Caribbean.

Loans directly to the private sector without government guarantees are set at market rates andcan have tenors up to 20 years.

In 2011, the bank approved 46 Non-Sovereign Guaranteed (NSG) operations for a total amount



of $1.5 billion, including eight loans for $41.8 million under the Trade Facilitation Programme(TFFP). In addition, 15 new lines of financing were approved under TFFP for $235 million.

IADB Group:The IADB Group is composed of the Inter-American Development Bank, the MultilateralInvestment Fund (MIF) and the Inter-American Investment Corporation (IIC).

The IADB Group is composed of the Inter-American Development Bank, the Inter-AmericanInvestment Corporation (IIC) and the Multilateral Investment Fund (MIF). The IIC focuses onsupport for small and medium-sized businesses, while the MIF promotes private sector growththrough grants and investments, with an emphasis on microenterprise.

The Multilateral Investment Fund (MIF) is an independent fund administered by the IADB. Itsfocus is to test and introduce new ways to strengthen micro- and small enterprise capacities,stimulate improvements in the business environment and engage the private sector in thedevelopment process.

The MIF supports economic growth and poverty reduction in Latin America and the Caribbeanthrough encouraging increased private investment and advancing private sector development. Itworks with the private sector to develop, finance, and execute innovative business models thatbenefit entrepreneurs and poor and low-income households; partners with a wide variety ofinstitutions from the private, public and non-profit sectors; evaluates results; and shares lessonslearned.

The MIF is a laboratory for testing pioneering, market-based approaches to development, and anagent of change that seeks to broaden the reach and deepen the impact of its most successfulinterventions.

Established in 1993 as part of the IADB Group, the MIF is the largest provider of technicalassistance for private sector development in the Latin American and Caribbean region.

In its 17-year history, the MIF has approved over 1,700 projects, committed over $ 1.5 billionand mobilised a total of over $ 2.7 billion in the LAC region, reaching over 4 million beneficiaries.

The MIF finances about 100 projects per year, with a total finance volume of about $100 million.

The MIF works through technical assistance grants, lending, and equity investments, as well asthrough combinations of these tools when both capacity building and risk sharing finance areneeded for success. It is the largest international technical assistance provider to the privatesector in Latin America and the Caribbean and always works with local, mostly private partnersto help fund and execute projects - civil society organisations, industry associations, foundations,universities, cooperatives, companies, and financial institutions. Every dollar approved by the MIFleveraged more than $2.5 from partners in 2011.

The Inter-American Investment Corporation (IIC) is a Bank affiliate that supports small- andmedium-sized enterprises with loans and equity investments.

The IIC is a multilateral investment institution that is part of the IADB Group. The IIC’s mission isto promote economic development in its regional developing member countries by fostering the

IADB



establishment, expansion, and modernization of private enterprises in a manner complementingthe activities of the IADB, with the focus on small and medium-size enterprises.

The Corporation works in close cooperation with the IADB Group in its efforts to promote privatesector development, mounting joint activities designed to broaden support for the private sectorin the regional developing member countries. Essentially, this cooperation involves projectidentification in the areas of agriculture, manufacturing, forestry, tourism, infrastructure, health,education, technological enhancement, risk management, and any other areas in which there areexisting IADB programmes; joint technical cooperation agreements to help companies gainaccess to international capital markets; joint efforts to identify investment promotionmechanisms; and administrative support through regional offices.

Over the course of more than 25 years of work, the IIC has become a reliable partner andeffective catalyst for economic development in the Latin American and Caribbean region. The IICis committed to providing small- and medium-size enterprises with greater access to financialresources and technical assistance to expand and improve their operations, create jobs, andpromote environmental and social sustainability. That commitment has enabled the IIC to serveits market of more than a million SMEs, which, to date, have benefited from a total of over $4.4billion in direct and indirect IIC loans.

In 2011, the IIC approved $464.7 million in direct loans and investments, and $470.5 million inco-financing operations that substantially leveraged the resources provide directly by the IIC.



Islamic Corporation for the Insurance ofInvestment and Export Credit (ICIEC)PO Box 15722Jeddah 21454Kingdom of Saudi ArabiaTel: (+966) 2 644 5666Fax: (+966) 6443447E-mail: [email protected]: www.iciec.com

Institution

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) is a member ofthe Islamic Development Bank (IDB) Group and was established on August 1, 1994 as aninternational institution. ICIEC commenced operations in July 1995 from its principal office inJeddah, Saudi Arabia. ICIEC recently opened its first representative office in the DubaiInternational Financial Center (DIFC) in Dubai, UAE.

ObjectiveThe objective of ICIEC is to enlarge the scope of trade transactions and the flow of investmentsamong member states of the Organization of the Islamic Conference (OIC).

FunctionICIEC provides export credit and political risk insurance in accordance with the principles ofIslamic Shariah:• Export credit insurance covers exporters against the non-payment of export receivables

resulting from commercial risk and/or political risks.• ICIEC’s Investment Insurance protects investors and lenders against the political (country) risks.• Reinsurance facility to export credit agencies.

Commercial Risks are related to the buyer, and consist of:• Insolvency of the buyer.• Failure or refusal of the buyer to pay.• Refusal of the buyer to accept goods after shipment.• Cancellation of the contract arbitrarily by the buyer.

Political Risks are related to the country, and consist of:• Transfer and convertibility restrictions:

Cover is provided against losses resulting from the investor’s inability to convert profits,capital, royalties and other remittances from local currency into hard currency or transfer thesame outside the host country.

ICIEC



• Expropriation risk:Cover provided against acts or series of acts taken by the host government to seize,confiscate or nationalize investments or assets of the investors.

• War and Civil disturbance:Cover provided against any loss resulting from removal, destruction or physical damage aswell as prolonged business interruption due to war or nay military action in the host country.

• Breach of contract:Cover provided against host country government’s breach or repudiation of a contractualagreement with the investor.

Shariah principlesICIEC provides the above insurance facilities in accordance with the principles of Islamic Shariah.

The corporation must:• Endeavour to achieve mutual cooperation of policyholders through their collective sharing of

losses, which any one policyholder may suffer.• Distribute the surplus that may accrue from insurance and any reinsurance operations to

policyholders after meeting statutory reserve obligations.• Exclude from cover contracts for the sale of goods prohibited under Shariah, as well as

interest accruing from such export credit or investment loans.• Invest its own funds in accordance with Islamic principles.

CapitalThe authorized capital of ICIEC is 150 million Islamic dinars (ID), divided into 150,000 shareswith a par value of ID1000 each. The value of the Islamic dinar, which is the unit of account inthe corporation, is equal to one special drawing right (SDR) of the International Monetary Fund.

The IDB has subscribed to 67% of ICIEC’s authorized capital, the remaining 33% is subscribedby 40 member countries of the Organization of Islamic Conference (OIC).

Membership as of August 2005Members of ICIEC are the IDB and OIC Member States that have signed and ratified the articlesof agreement of the corporation and have paid their respective subscription to the capital stockof ICIEC. The following countries are full members:

1. Albania 11. Djibouti 21. Lebanon 31. Qatar2. Algeria 12. Egypt 22. Libya 32. Saudi Arabia3. Bahrain 13. Gabon 23. Malaysia 33. Senegal4. Bangladesh 14. Gambia 24. Mali 34. Sudan5. Benin 15. Guinea 25. Mauritania 35. Syria6. Brunei 16. Indonesia 26. Morocco 36. Tunisia7. Burkina-Faso 17. Iran 27. Niger 37. Turkey8. Cameroon 18. Jordan 28. Nigeria 38. Uganda9. Chad 19. Kazakhstan 29. Oman 39. UAE10. Cote D’Ivoire 20. Kuwait 30. Pakistan 40. Yemen

41. Comores

ICIECDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


Eligibility criteriaThe following eligibility criteria apply for availing of ICIEC’s Export Credit Insurance services:• Goods should be compatible with Islamic Shariah• Goods must be manufactured in a Member Country, or should have at least 30% value

added in a Member Country• Exporter should be registered in a member country, or should be majority owned by a

national of a member country

Notwithstanding the last two points above, ICIEC can also offer Export Credit Insurance servicesto exporters from non-member countries, exporting to ICIEC’s Member Countries. The eligibilitycriteria for such exports are as follows:• The goods being supplied must be capital or infrastructure related equipment/services, food

security related items, or essential commodities.

The following eligibility criteria apply for availing of ICIEC’s Investment Insurance services:• The investment must be destined for an ICIEC Member Country• The investment has to be in a new project or expansion of an existing project• The investment should be compatible with Shariah (Islamic Law)

Insurance programmes

Export Credit InsuranceExport credit insurance is offered under the following policies:• Comprehensive short-term policy.• Specific transaction policy.• Bank master policy.• Documentary credit insurance policy.

Policy documents and other supplementary literature are available in the three languages of thecorporation (Arabic, English and French). The policy currency can be in Islamic dinars, US Dollarsor Euros, depending entirely on the policyholder’s choice.

Comprehensive short-term policyThe comprehensive short-term policy (CSTP) covers repetitive shipments of raw materials,commodities and light manufactured goods under which credit extended to buyers does notexceed one year. The exporter is normally obliged to offer his entire insurable export turnover butcertain exclusions may be considered. The main features of the CSTP are as follows:• Risks covered: both political and commercial risks.• Policy duration: one year subject to a simple renewal procedure.• Extent of indemnity: Up to 95% of the loss or of the credit limit approved on the buyer,

whichever is lower. Standard extent of indemnity is 90%.• Claims waiting period: immediately in the event of buyer’s insolvency, but normally four to six

months in all other causes of loss.• Export financing: claims proceeds under the policy can be assigned to a bank to secure the

requested export financing• Premium: payable monthly, based on export declarations submitted by the exporter. Premium

rates are quoted for each individual policy, depending on terms of payment, market gradingof buyer’s country and the exporter’s claims experience.

ICIEC



• Claims: a claim must be filed within 45 days after the date of loss. Upon verification that aclaim is valid, ICIEC will settle the stipulated percentage of indemnity after expiry of therelevant claims waiting period.

• Recoveries: the exporter is required to pursue recoveries from the defaulting buyer afterpayment of a claim, with advice from and in consultation with ICIEC. The corporation mayexercise its subrogation rights and pursue recoveries directly.

• Extensions of cover: where appropriate, the policy can be extended to cover pre-shipmentrisks, sales to/by overseas subsidiaries and other special situations.

Specific Transaction Policy (STP)The STP covers single export contracts between exporters and their buyers. The STP is designedto cover transactions with credit periods of up to 7 years. There is no restriction (other thanShariah compliance) in terms of the equipment/services that can be covered under the STP. Bothpolitical and commercial risks are covered under the policy. Premiums for the STP are usuallypayable up front, at the inception of the policy.

Bank master policyThe bank master policy (BMP) is specially tailored to cover non-payment risks in connection withIDB and other Islamic banks financing operations. It provides cover for export financingoperations of Islamic Banks. It is expected that the BMP will encourage bank and other financialinstitutions that finance trade and investment operations in accordance with Shariah, toundertake financing in circumstances where applicants are unable to furnish acceptable bankguarantees, or where acceptable commercial and political risks do not exist.

The Documentary Credit Insurance Policy (DCIP)This policy is available to commercial banks or financial institutions to protect them against therisk of non-payment of an irrevocable letter of credit (L/C) issued by the importer’s bank.

Investment InsuranceInvestment insurance is offered under the following policies:

Equity Investment Insurance PolicyThis policy covers investors’ equity investment against host country risks. It covers both theamount contributed plus the earnings included in the cover.

Financing Facility Insurance PolicyThis policy covers lenders’ loan or financing facility to an investment project against host countryrisks. In case of Islamic financing the policy covers both the principal amount plus the mark-up,while in case of conventional financing the policy only covers the principal excluding interest.

Loan Guaranties Insurance PolicyThis policy covers guarantor of a loan or financing facility to an investment project against hostcountry risks. If the guaranteed loan is Islamic the policy covers both the principal amount plusthe mark-up, however, if the guaranteed loan is conventional the policy only covers the principalexcluding interest.

ICIEC covers non-commercial risks for overseas investments. It is not linked to the export ofgoods.

ICIECDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


Application• Lender and/or investor may apply for ICIEC’s Political risk insurance by submitting the

Preliminary Application, when registered this is followed by submitting the Main Application.

Cover:Standard up to 15 years (maximum 20 Years)

Extent of Indemnity:Up to 95%.

Fees• Application Fees are charged when the Main Application for foreign investment insurance

policy is received.• Premium is charged according to the country rating and the number of risks to be covered.• Premium is paid up front and is charged on the insured amount of the Investment. (In case of

financing it is charged on the financed amount excluding interest).

ICIEC



International Finance Corporation (IFC)2121 Pennsylvania Avenue, NWWashington, DC 20433USA

For directory service, call the IFC switchboard at +1 202 473 1000.

Website: www.ifc.org/trade

Contacts:Bonnie Galat, Global Head, Business Development, Global BanksEmail: [email protected] Tel: +33 1 4069 3173

Sabrina Borlini, Global Manager, Business DevelopmentEmail : [email protected]: +1 202 458 4115

Hyung Ahn, Global Manager, Trade ProductsEmail : [email protected]: +1 202 458 9288

Institution

IFC, a member of the World Bank Group, is the largest global development institution focusedexclusively on the private sector in developing countries. Established in 1956, IFC is owned by184 member countries, a group that collectively determines our policies. Our work in more thana 100 developing countries allows companies and financial institutions in emerging markets tocreate jobs, generate tax revenues, improve corporate governance and environmentalperformance, and contribute to their local communities.

IFC launched its Global Trade Finance Programme (GTFP) in 2005 to extend unfunded supportthrough guarantees for individual trades to or from emerging markets. In late 2010, capitalizingon the success of the GTFP, IFC formed its Trade and Supply Chain Department, which integratessupply chain financing and other trade facilitation initiatives. Our suite of innovations to addressgaps in financing availability for emerging market banks and corporates has expanded to includewarehouse finance, supplier finance, distributor finance, structured trade finance, and portfolioand systemic solutions.

Program Highlights• AAA rated: Basel II and III benefits for trade exposure in emerging markets• Funded and unfunded risk-sharing facilities available for utilization banks and trading

companies• Facilities cover a variety of underlying trade and commodity instruments: LCs, SLCs, bills of

exchange, guarantees, PNs, WHR, etc.• Import, pre-export, and working capital financing available for tenors of up to three years• Dedicated team of trade professionals located across all regions

IFCDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


• Technical assistance and training provided for banks in emerging markets• No fees to join

Program OfferingsGlobal Trade Finance Programme: Through GTFP, IFC guarantees the trade-related paymentobligations of nearly 250 financial institutions in emerging markets across all regions of theworld.

Global Trade Liquidity Programme (GTLP): The GTLP mobilizes public and private sectorinvestment to share risk alongside banks on portfolios that support emerging market trade.

Global Warehouse Finance Programme (GWFP): Our GWFP helps increase the working capitalavailable to food producers and agricultural firms by guaranteeing and lending againstwarehoused commodities.

Global Trade Supplier Finance (GTSF): The GTSF lowers the costs associated with financingsuppliers in emerging markets by purchasing receivables on invoices accepted for payment byapproved creditworthy buyers.

Distributor Finance: Banks can fund emerging market distribution chains through risk-sharingfacilities and partial guarantees for distributors and end-users.

Structured Trade Finance: IFC supports importers and exporters in their cross-border trades ofsoft commodities by providing funding or risk sharing with partner banks.

Systemic Liquidity Solutions: IFC provides loans to local banks in a given country to support theirworking capital and trade finance lending to SMEs.

Critical Commodity Finance Programme (CCFP): The CCFP mobilizes public and private sectorinvestment to share risk alongside banks on portfolios that support agriculture and energycommodities trade flows in emerging markets.

Programme Results• Over $45 billion in emerging market trade supported since 2005

IFC



International Islamic Trade FinanceCorporation (ITFC)14th Floor IslamicDevelopment Bank Group(IDB) HQKing Khalid RoadPO Box 55335Jeddah 21534Saudi Arabia

Website: www.itfc-idb.org

Contact:Tel: +966 2 636 1400Fax: +966 2 637 [email protected]

Institution

The International Islamic Trade Finance Corporation (ITFC), an autonomous entity within theIslamic Development Bank (IDB) Group, is advancing trade to improve the economic situation andlivelihoods of people across the Islamic world. With a subscribed capital of $750 million, the ITFCwas formed to merge the trade finance business that was formerly undertaken by variouswindows within the IDB Group. This consolidation under a single umbrella increased theefficiency of service delivery and enabled the ITFC to rapidly respond to customer needs in amarket-driven business environment.

A rich heritage that spans more than 30 years in trade finance by the IDB Group puts the ITFC ina leadership position to foster socio-economic development through trade, set new benchmarksin trade financing, enhance trade, ethical-based business standards, and developing innovativeShariah-compliant trade financing instruments. Moreover, the ITFC is the culmination of apioneering commitment by the Islamic Development Bank (IDB) Group to support and drive theintra-trade agenda by the means of promoting, facilitating, trade and trade cooperation amongOIC member countries and with the rest of the world.

The Mission & VisionThe ITFC mission is to be a catalyst for the development of trade among OIC member countriesand with the rest of the world. With a vision to be a recognized provider of trade solutions for theOIC member countries needs, the ITFC is operating to world-class standards, promoting the IDBGroup’s developmental objectives in order to fulfill its brand promise of ‘Advancing Trade &Improving Lives.’

ITFCDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


Advancing Trade & Improving LivesThe ITFC inherited the pioneering mantle of its trade finance expertise and its application ofinnovative Islamic finance products developed over a period of more than 30 years to developmarkets and trading capacities to help the member countries do business more effectivelyamongst themselves and with the rest of the world. This savoir-faire, positions ITFC at theforefront of international trade finance and as a vehicle for sustained economic development.

In the short-run, ITFC is boosting trade by making trade finance available on time for thebeneficiaries, taking into consideration the uniqueness of the trade transaction cycles, gearedtowards improving the livelihood of people.

Financing for small and medium size enterprises (SMEs) and Least Developed Member Countries(LDMCs) are also one of the highest priorities for ITFC. Providing LDMC’s with funds for tradethrough lines and two-step Murabaha financing helps to bring prosperity by supporting thegrowth and development of economic sectors that expand and diversify business opportunities,in addition to helping to alleviate poverty through trade financing that contributes to thepreservation of jobs and creation of new employment opportunities.

In the long run, ITFC plays a catalyst role in the enhancement of trade through a variety ofprogrammes especially in such areas of promotion, facilitation, capacity building and developingstrategic commodities, which creates immense opportunities for economic growth and socialwelfare.

Trade Cooperation & Promotion Programme (TCPP)As the IDB Group’s prime enabler to promote and enhance intra-trade and trade cooperation, theITFC through its Trade Cooperation & Promotion Programme – TCPP, plays the role of a catalyst,facilitator and network builder; the TCPP assists in bringing member countries closer together byplaying a pivotal role in helping to produce a landmark Roadmap for enhancing intra-trade,developing member countries’ trade and export competitiveness on the international market andstrengthening OIC member countries’ trade capacities for sustainable national trade developmentthrough ITFC’s five business lines of Trade Finance, Trade Promotion, Trade Facilitation, CapacityBuilding, and the Development of Strategic Commodities.

ITFC



KfW IPEX-BankFritz Frank, Senior DirectorGlobal Head of Syndication andTreasuryE-mail: [email protected]: (+49) 69 74 31 23 21Fax: (+49) 69 74 31 96 04

Institution

KfW IPEX-Bank is a 100% subsidiary of KfW Bankengruppe (KfW banking group) and isresponsible for the International Project and Export Finance business area. KfW Bankengruppe isowned by the Federal Republic of Germany (80%) and the German federal states (20%) and hasbeen active for more than 60 years in supporting small and medium-sized enterprises andbusiness start-ups, housing construction and modernisation, the protection of the environmentand the climate as well as developing and reforming countries. KfW Bankengruppe is today oneof the ten largest banks in Germany.

KfW IPEX-Bank strengthens the position of German and European companies domestically andabroad and supports the realisation of environmental and climate protection projects – worldwide.Its core products are medium and long-term financing solutions to maintain the competitivenessand support the internationalisation of German and European export companies. KfW IPEX-Bankcustomised financing solutions help to sustain and expand economic and social infrastructure inEurope, develop and deploy means of mobility as well as ensure the supply of raw materials – andthus the production base of the German economy – while safeguarding companies and jobs as aresult. KfW IPEX-Bank offers a broad range of financing products covering ECA-covered exportfinancing, corporate loans, trade financing, complex structured and project financings.

With total assets of a46.4 billion as of December 31, 2011 it is one of the leading addresses inthis market. In the year 2011 the volume of lending by KfW IPEX-Bank amounted to a29.4billion. Besides its headquarters in Frankfurt/Germany, KfW IPEX-Bank maintains a branch inLondon and representative offices in New York, Moscow, Istanbul, Bangkok, Mumbai,Johannesburg, Abu Dhabi, and in São Paulo.

IPEX-BankPalmengartenstrasse 5-960325 Frankfurt am Main, GermanyTel: (+49) 69 74 31 3300Fax: (+49) 69 74 31 29 44E-mail: [email protected]

Contact:Gisela von Krosigk, Senior DirectorGlobal Head of Leveraged FinanceE-mail: [email protected]: (+49) 69 74 31 35 57Fax: (+49) 69 74 31 96 04

KfWDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


Multilateral Investment Guarantee Agency(MIGA)World Bank Group1818 H Street, NWWashington DC 20433USATel: (+1) 202 458-2538Fax: (+1) 202 522 [email protected]

Ownership: 177 member countries

Function:Provides investment guarantees (political risk insurance) for foreign direct investment indeveloping member countries

Institution

The Multilateral Investment Guarantee Agency (MIGA), part of the World Bank Group, wasestablished in 1988 to encourage foreign direct investment in developing countries by providinginvestment guarantees (insurance) to investors and lenders against the risks of transferrestriction, expropriation, war and civil disturbance, breach of contract, and non-honoring ofsovereign financial obligations in the host country. MIGA has 177 member countries.

Guarantees

MIGA can insure:• New investments.• The expansion, modernization, privatization or financial restructuring of existing investments.• Foreign direct investments to, as well as between, developing member countries.• Different forms of investment, such as equity, shareholder loans, non-shareholder loans, loan

guarantees, and under certain circumstances, technical assistance and production-sharing contracts.

MIGA’s investment guarantees serve the host country’s needs by promoting investments that arefinancially, economically and environmentally sound, and that have a positive development effect,such as the creation of employment, generation of export revenues, and transfer of technology.

Applications• An investor seeking MIGA’s insurance must register its project with the agency in the form of

a free preliminary application. The application does not obligate the investor to buy insuranceor MIGA to issue coverage, and the information is kept confidential by MIGA.

MIGA



• When the project is further advanced, the investor must file a definitive application, whichprovides more details on the investment and includes supporting documentation, includingfeasibility studies or a business plan, environmental assessments, and evidence of theeconomic viability and financial soundness of a project.

• The underwriting process is initiated when MIGA receives application fees from an investor,which forms part of the definitive application process. The approval of the host government issought, and must be obtained, for MIGA to offer insurance to the applicant. The reviewprocess involves detailed assessments by the agency of various aspects of the project, andthe type of coverages requested.

Terms• MIGA coverage is long-term (up to 15, sometimes 20, years)• Through coinsurance and reinsurance arrangements, MIGA collaborates with other insurers

to expand the availability of investment insurance to investors seeking to invest in developingcountries.

• MIGA coverages may be bought individually or in combination, but the decision as to whichcoverage is needed must be made before MIGA issues its contract of guarantee.

• MIGA coverages may be bought individually or in combination, but the decision as to whichcoverage is needed must be made before MIGA issues its contract of guarantee.

• Through its Small Investment Programme, MIGA offers a streamlined underwriting processand reduced premiums for investments under $10 million.

Cover• Currency inconvertibility and transfer restriction – Protects against losses arising from an

investor’s inability to legally convert local currency (capital, interest, principal, profits,royalties, and other remittances) into hard currency (dollar, euro or yen) and/or to transferhard currency outside the host country where such a situation results from a governmentaction or failure to act. Currency depreciation is not covered. In the event of a claim, MIGApays compensation in the hard currency specified in the contract of guarantee.

• Expropriation – Protects against losses arising from certain government actions that mayreduce or eliminate ownership of, control over, or rights to the insured investment. In additionto outright nationalization and confiscation, ‘creeping’ expropriation—a series of acts that,over time, have an expropriatory effect—is also covered. Coverage is available on a limitedbasis for partial expropriation (e.g., confiscation of funds or tangible assets).

• War, terrorism and civil disturbance – Protects against loss from, damage to, or thedestruction or disappearance of, tangible assets or total business interruption (the totalinability to conduct operations essential to a project’s overall financial viability) caused bypolitically motivated acts of war or civil disturbance in the country, including revolution,insurrection, coups d’état, sabotage, and terrorism. Temporary business interruption mayalso be included upon a request from the investor and would cover a temporary but completecessation of operations due to loss of assets or unreasonably hazardous conditions in thehost country, which result in a temporary abandonment or denial of use

• Breach of contract – Protects against losses arising from the government’s breach orrepudiation of a contract with the investor (e.g., a concession or a power purchaseagreement). Breach of contract coverage may be extended to the contractual obligations ofstate-owned enterprises in certain circumstances. In the event of an alleged breach orrepudiation, the investor should invoke the dispute resolution mechanism (e.g., an arbitration)set out in the underlying contract. If, after a specified period of time, the investor has beenunable to obtain an award due to the government’s interference with the dispute resolutionmechanism (denial of recourse), or has obtained an award but the investor has not received

MIGA



payment under the award (non-payment of an award), MIGA would pay compensation. Ifcertain conditions are met, MIGA may, at its discretion, make a provisional payment pendingthe outcome of the dispute and before compensation for non-payment of an award is paid.

• Non-honouring of Sovereign Financial Obligations – Protects against losses resulting from agovernment’s failure to make a payment when due under an unconditional financial paymentobligation or guarantee related to an eligible investment. It does not require the investor toobtain an arbitral award. This coverage is applicable in situations when a sovereign’sfinancial payment obligation is unconditional and not subject to defenses.


MIGA’s value added to its clients:• Resolving disputes – MIGA’s member countries are also shareholders, putting MIGA in a

strong position to help resolve disputes that might arise. Since 1988, MIGA has supportedsome 700 projects and has paid only six claims, four of which resulted from war and civildisturbance events.

• Prompt claims payment – When claims do need to be paid, MIGA is able to pay thempromptly, based on a strong balance sheet and a stable stream of operating income.

• Accessing funding – Our guarantees help investors obtain project finance from banks onenhanced terms, and help equity funds raise risk capital.

• Increasing tenors – The agency can provide insurance coverage for up to 15 years, and insome cases 20.

• Lowering borrowing costs – MIGA-guaranteed loans may help reduce provisioningrequirements for lenders, leading to reduced borrowing costs.

• Enhancing capital markets transactions – MIGA guarantees can enhance credit ratings forbond issuances, resulting in an expanded pool of eligible investors.

• Mobilizing reinsurance capacity – MIGA is able to provide guarantee support for any sizeproject, through its ability to secure reinsurance capacity.

• Sharing knowledge and experience – MIGA can help clients structure transactions to mitigaterisks effectively. Clients can benefit from MIGA’s experience, global reach and in-depthknowledge of developing countries.

• Providing environmental and social expertise – MIGA applies a comprehensive set of socialand environmental performance standards to the projects it supports. We also help investorsand lenders to implement these standards—thereby demonstrating their commitment tomeeting international best practice.

Guarantee portfolio

Concerns about uncertain political environments and perceptions of political risk often inhibitinvestment, with FDI often going to a handful of countries, leaving the world’s poorest economieslargely ignored. MIGA concentrates its efforts in areas where it has the greatest impact. Theseinclude complex projects, particularly in the infrastructure sector; investments in conflict-affectedcountries; investments from one developing country to another (South-South investment); andinvestments in the world’s poorest countries.

Since its inception MIGA has supported some 700 projects in more than 100 developingcountries, for a total of more than $27 billion in guarantees.

MIGA



Nordic Investment Bank (NIB)Fabianinkatu 34P.O. Box 249FI-00171 HelsinkiFinlandTel: +358 10 618 001Fax: +358 10 618 0725E-mail: [email protected]

Ownership structure: NIB is owned by the five Nordic countries and the three Balticcountries. The bank’s member countries have subscribed to its authorized capital in portionto their gross national income. Sweden has approximately 34.6% of authourised capital,while the corresponding figure for Denmark is 21.1%, Norway 21.5%, Finland 17.7%,Lithuania 2.0%, Latvia 1.3%, Iceland 0.9% and Estonia 0.9%.

Function:the Nordic Investment Bank is an international financial institution. NIB was established in 1975.NIB’s headquarter is in Helsinki, and the bank also has representatives in Beijing and Moscow.

NIB promotes the sustainable growth of its member countries by providing long-term financing,based on sound banking principles, to both public and private projects that strengthencompetitiveness and enhance the environment. The Bank provides loans and guarantees foractivities in which it can add value and complement other financing sources.

NIB focuses on projects in energy, environment, infrastructure, consumer goods production andheavy industries. Projects can involve large investments by the corporate sector or investmentsby small and medium-sized enterprises, targeted in cooperation with financial intermediaries. NIBparticipates in financing of cross-border investments as well as industrial projects which affectmore than one member country. It also aims at the continued expansion of financing in theneighbouring region and in other countries where a mutual interest has been identified. TheBaltic Sea and Barents Sea regions are priority areas for the bank’s operations.

The bank’s strengths as an international financial institution (IFI) include its:• stability and reliability;• experience in financing cross-border investments;• capacity to manage risks;• high credit ratings, due to its high asset quality, strong balance sheet and ownership;• stable supply of long-term financing; and• ability to structure complex financing with other IFIs and public/private sector lenders.

When projects are considered for financing, not only their impact on competitiveness and theenvironment is analysed, but also their broader, indirect effects on economy and society are

NIB



taken into account. The projects are viewed from a sustainable growth perspective, which looksahead to ensure that there are resources for growth in the future.

NIB acquires the funds for its lending by borrowing on the international capital markets. Thebank’s bonds enjoy the highest possible credit rating, AAA/Aaa, with the leading rating agenciesStandard & Poor’s and Moody’s.

NIB’s major aims and strategy include:• NIB’s primary purpose is to promote the sustainable growth of the economies of the member

countries by means of long-term financing of projects in the private and public sector.• All projects financed by NIB should strengthen competitiveness and/or enhance the

environment, in accordance with NIB’s mandate. Furthermore, outside the membership area,projects financed by NIB should be of mutual interest to the country of the borrower and themember countries.

• NIB operates on the basis of sound banking principles, and strives to create added value forits clients by providing loans which supplement other financing sources.

• NIB participates in financing of cross-border investments as well as industrial projects whichaffect more than one member country.

• NIB finances projects in the emerging markets outside the member countries. The Baltic Seaand Barent Sea regions are priority areas for the bank’s operations.

• NIB acts as a catalyst for industrial co-operation in the member countries, by financing newinvestments, infrastructure projects and structural improvements, particularly cross-borderinvestments.

• NIB participates in the financing of environmental improvement investments in the membercountries and in the Baltic Sea and Barents Sea regions. NIB operates special environmentalloan facilities for projects promoting energy efficiency and renewable energy aimed atmitigating climate change, and projects for improving the ecological status of the Baltic Sea.

• NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agenciesStandard & Poor’s and Moody’s. NIB strives to maintain the highest possible credit rating, inorder to supplement other lending institutions in the member countries with long-term loanson favourable terms.

Lending

Lending in member countriesIn the member countries, NIB offers medium- and long-term investment loans with maturities ofusually five to fifteen years but exceptionally with longer maturities. The loans are granted invarious currencies at fixed or floating market-based interest rates, for up to half of the project’stotal cost. More than two-thirds of NIB’s financing is directed towards its member countries.

NIB finances• projects in the manufacturing industry, including investments in industrial facilities;• infrastructure investments within sectors, such as energy, transport, telecommunications,

water supply and waste management;• environmental investments in the business and public sectors;• cross-border investments, such as mergers and corporate acquisitions;• research and development;• foreign investments in the member countries;

NIBDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


• improvement of the economic conditions for small and medium-sized enterprises inprioritised areas.

Lending outside member countriesThe core of NIB’s international lending operations consists of Project Investment Loans. Theseare long-term loans—up to 20 years—for projects in emerging markets in Africa and the MiddleEast, Asia, Central and Eastern Europe as well as Latin America. Loans are primarily granted tothe borrowing countries’ governments or public financial institutions. Project investment loansmay also be granted without a government guarantee, particularly to private sector infrastructureinvestments. The loans are granted for up to half of the project’s total cost. Project InvestmentLoans can be utilised to finance all types of project costs, including local costs. The loans aregranted at market-based interest rates in a currency preferred by the customer. ProjectInvestment Loans have been granted for projects in approximately 30 countries.

In the member countries’ neighbouring areas, NIB grants loans primarily to projects, aimed atinfrastructure development and promoting economic conditions for small and medium-sizedenterprises. The Bank has a special environmental loan facility for financing environmentalprojects in the member countries’ neighbouring areas. The projects are to help in reducingenvironmental degradation and thereby also in reducing cross-border pollution. Environmentalinvestment loans are granted on the basis of commercial banking terms to governments,governmental authorities, institutions and companies.

NIB



NorfundThe Norwegian Investment Fund forDeveloping CountriesNorfundP.O. box 1280 Vika0110 OsloNorway

Tel: +47 22 01 93 93Fax: +47 22 01 93 94Website: www.norfund.no

Institution

• Norfund is a hybrid state-owned company with limited liability• At the end of the year 2010 Norfund had a committed portfolio for a total of NOK 5.8 billion• Investment areas and countries are

– Central America: Guatemala, El Salvador, Nicaragua, Honduras, Panama and Costa Rica– Southern Africa: Angola, Namibia, South Africa, Lesotho, Swaziland, Mozambique,

Zimbabwe, Zambia, Madagascar and Malawi– ast Africa: Kenya, Tanzania, Uganda, Burundi, Rwanda and Southern Sudan– South-East and Southern Asia: Bangladesh, Vietnam, Laos, Cambodia

• Regional offices in Johannesburg, Nairobi and San José• Focus industries are renewable energy and the financial sector• Norfund offers loan and equity in cooperation with different partners (Norfund can normally

not have an equity share above 35%)

MandateNorfund’s mandate is to develop sustainable commercial activities in developing countries byestablishing and developing profitable activities which would not otherwise have been initiatedbecause of the high risk involved. This means that Norfund makes investments that are additionalto what would otherwise have happened in the market. In other words, Norfund invests wherethere is a shortage of capital and expertise. The objective of being additional has two dimensions:1. Contributing to more investments in poor countries because Norfund is willing to assume

more risk and costs than most private investors.2. Contributing to better investments, because Norfund gives priority to projects with a strong

development effect and enhances these effects through active ownership and support for thedevelopment of the enterprises.

In addition, Norfund acts as a catalyst by mobilising private capital and expertise that would nototherwise have been.

NorfundDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


StrategyNorfund is a financial investor, and expertise in investing and in managing risk in developingcountries is therefore vital. This is contingent on knowledge of the framework conditions in thecountries and sectors in which Norfund invests, about companies and their management, andabout the partners with whom we co-invest. In order to gain as much insight as possible intoframework conditions and politics, Norfund has concentrated its investment in a limited numberof countries. Important criteria for the choice of these countries have been prioritising Africa,ensuring a high share of investment in countries classified as least developed countries (LDCs)and including countries that are important in Norwegian development cooperation. These arecountries with a particular shortage of capital and expertise. Norfund has additionally chosen toconcentrate especially on renewable energy and the financial sector. These are sectors whereour activities result in particularly high development effects and where the conditions are in placefor mobilising expertise of international quality among Norwegian partners. Access to energy anda functioning banking and financial system are crucial infrastructure for development.

Active ownershipNorfund is an active owner. How active we are depends on the type of investment, our ownershipshare and who our co-investors are. Norfund makes equity investments more often than itprovides pure loan financing. This tends to involve positions on the board, and boardroom workgives proximity to operations and the possibility of influencing standards. Norfund wishes to beboth a guarantor of fundamental rights and a driving force for raising standards over time. Givenan ownership horizon of 4-10 years, Norfund works for the creation of a corporate culture that isengaged in continuous improvement of corporate governance and environmental and socialstandards. Action plans are used to stake out a long-term course for how companies should shiftfrom operating according to local standards to international standards. Since Norfund cannotown more than 35% of the shares in a company, co-investing with like-minded investors andcoordinating corporate governance as far as possible is important. Norfund also has a specialgrant facility that can be used to subsidise project development, boost the development effects ofthe projects and assume greater social responsibility in connection with projects. These grantresources are allocated independently of the commercial investment capital, and are an effectiveinstrument in Norfund’s execution of ownership.

Norfund



Oesterreichische Entwicklungsbank (OeEB)Oesterreichische Entwicklungsbank AG (OeEB)Strauchgasse 1-31011 ViennaAustria

Tel.: +43 1 533 1200-0Fax: +43 1 533 [email protected]: www.oe-eb.at

Ownership structure:100% owned by Oesterreichische Kontrollbank (OeKB).

Function:OeEB acts as the official Development Bank of Austria. As a private sector financial institution ithas been mandated by the Republic of Austria to support projects in developing and emergingcountries (in accordance with the list of the OECD-Development Assistance Committee) that:• Are predominately located in the private sector,• Require conditions close to market rates (no interest subsidies),• Are commercially self supporting,• Meet development policy criteria, e.g. creation of additional employment, investments in

climate protection and energy efficiency projects or environmental equipment, investments ininfrastructure or renewable energy, transfer of know-how.

• In addition, OeEB has to act complementary to commercial banks.

Mission• Poverty reduction.• Sustainable economic growth in developing countries.• Investments and entrepreneurship for more jobs in the private sector and higher income for

the poor.• Creation of budget revenues for governments.• Improved access to infrastructure and finance.• Positive environmental impacts.

Role of OeEB• Co-financier or lead financier for selected projects.• OeEB takes bank, company and project finance risks and finances in principle new

investments, expansions investments and rehabilitations.• OeEB is a creditworthy partner with a long term rating of AA+ (S&P).• OeEB is a member of EDFI (European Development Finance Institutions).

OeEBDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


Financial products:• Long-term loans, and subordinated loans as well as risk participations.• Credit lines to financial institutions requiring a specified use of funds (e.g. tied to the

financing of small hydro-power plants, projects of small and medium enterprises regardingenergy efficiency).

• Equity participations inter alia in funds, companies and banks.

Project-related auxiliary support facilities:In line with its financings OeEB can offer non-refundable funds to support programmes andmeasures that enhance the sustainability and the quality of a project:• Project-related training and qualification activities on site on your business partner�s

premises.• Training and qualification activities for employees of your contractual partner/subsidiary.• Measures regarding environmental and social aspects.

OeEB



The OPEC Fund for International DevelopmentParkring 8,A-1010 Vienna,Austria

P.O. Box 995,A-1011 Vienna,AustriaTel: (+43 1) 515 64-0Fax: (+43 1) 513 92 38

General Inquiries: [email protected]: www.ofid.org

Part 1

The OPEC Fund for International Development (OFID) is a development finance institutionestablished in 1976 by the member states of the Organization of Petroleum Exporting Countries(OPEC). The primary aim of OFID is to contribute to the social and economic development of low-and middle income countries. All developing countries, with the exception of OPEC membercountries, are in principle eligible for OFID assistance. Today, 132 countries across Africa, Asia,Latin America, the Caribbean, the Middle East and Europe – have benefitted from OFID’sassistance.

OFID’s resources consist of contributions made by OPEC member countries and the accumulatedreserves derived from its various operations.

OFID cooperates closely with a number of sister organisations in delivering its developmentassistance. These institutions include the Abu Dhabi Fund for Development, the Arab Bank forEconomic Development in Africa, the Arab Fund for Economic and Social Development, theIslamic Development Bank, the Kuwait Fund for Arab Economic Development and the Saudi Fundfor Development.

OFID also partners with other international Development Finance Institutions and commercialbanks, as well as with agencies of the United Nations system and Non-GovernmentalOrganisations (NGOs).

In order to keep its financing both accessible and relevant, OFID provides assistance through avariety of mechanisms:• Public Sector loans to governments for the development of economic and social

infrastructure. The principal sectors covered are energy, transportation, agriculture,education, health, water and sanitation.

OFIDDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


• Support to the Private Sector through lines of credit to Small and Medium-Size Enterprisesvia financial intermediaries, and through the financing of real economy projects in a widerange of sectors.

• Assistance to meet the trade financing needs of institutions in partner countries, includingbanks, private enterprises, governments and parastatals.

• Grants to provide assistance to social and humanitarian programmes.

Part 2

Trade FinanceOFID supports the flows of goods within and between countries. The main objectives are to:• promote national and international trade, particularly South-South trade;• respond to partners specific demands;• support the development of local banking systems;• further contribute to trade facilitation.

Financial InstrumentsOFID support for trade finance is provided through a variety of instruments, including directloans, lines of credit, structured trade finance and guarantees.

1. LoansLoans are extended directly to clients in beneficiary countries for import- and export financing ofa wide range of commodities and for the financing of domestic trade.

2. Lines of CreditLines of credit are provided to financial intermediaries to finance trade related transactions,notably for imports and exports, for pre- or post- shipment.

3. Structured Trade FinanceTailor-made financing solutions for clients based on security from the underlying transaction, inparticular pre-export financings and financing of tolling arrangements.

4. Unfunded Risk SharingRisk sharing in trade transactions with commercial banks and/or other development financeinstitutions.

BeneficiariesOFID can provide trade financing to and/or share in risks of governments, parastatals, banks andprivate enterprises.

CommoditiesAll commodities are eligible, except for alcoholic beverages and tobacco, weapons andmunitions. Gambling, casino and similar enterprises are also exempt.

Network PartnersThe development of a strong network of partners is a strategic objective of OFID. Partnersinclude commercial banks as well as other development finance institutions.

OFID



Overseas Private Investment Corporation(OPIC)

Contact for insurance information:Rod Morris, Vice President, InsuranceTel: (+1) 202 336 8400Fax: (+1) 202 408 5142

Ownership Structure: 100% sovereign

Function:Provides medium- and long-term guarantees, insurance and finance to support US investment inthe emerging markets

Institution

The Overseas Private Investment Corporation (OPIC) is a self-sustaining US government agencythat facilitates and supports US private investment into the emerging markets. OPIC’s politicalrisk insurance and financing help US businesses of all sizes invest in 150 emerging markets anddeveloping nations worldwide. Over the agency’s 40 year history, OPIC has supported over $194billion worth of investments that have helped developing countries to generate over 842,000host-country jobs. OPIC will not support projects that could result in the loss of US jobs,adversely affect the US economy or host country’s development or environment or contribute toviolations of internationally-recognized worker rights.

1100 New York Avenue NWWashington DC 20527USTel: (+1) 202 336 8400Fax: (+1) 202 336 7949Email: [email protected]: www.opic.gov

Contact for financing information:Robert B. Drumheller, Vice President,Structured FinanceJames C. Polan, Vice President, Small &Medium Enterprise FinanceTel: (+1) 202 336 8400Fax: (+1) 202 842 0290

OPICDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


Insurance

OPIC provides political risk insurance to US investors, contractors, exporters and financialinstitutions involved in international transactions.

The political risks covered are currency inconvertibility, expropriation and political violence. Alsooffered: Non-honoring of Sovereign Guarantees, Losses to Intellectual Property from actions andinaction by a sovereign entity, and Wrongful Calling of Bonds.

Application• Lender or project sponsor may apply for a letter of interest, preliminary commitment or final

commitment

Cover• OPIC insures loans to projects with procurement from third countries.• OPIC can insure loans where interest is capitalized during construction.• OPIC can cover capital market transactions, such as private placements and Rule 144A bond

issuance.• Insurance is provided for fixed-interest rate and floating-interest rate loans.• Cover is not provided in foreign currencies.• Bills covered by insurance policies cannot be freely transferred, except to the eligible parties

with notification to OPIC.• Residual risk must remain with the insured or guarantor.

Finance

OPIC can provide medium- and long-term project and corporate financing in countries whereconventional financial institutions are often reluctant or unable to lend on such a basis. Becauseits programmes support private sector investments in financially viable projects, OPIC does notoffer concessionary terms usually associated with government-to-government lending. OPIC willnot participate in projects that can secure adequate financing from commercial sources.

Cover provided for project finance is highly individual.

The following points may apply:• Up to 75% of the total project costs• Up to $250 million for each project.

OPIC



PEFCO Private Export Funding Corporation 280 Park Avenue,New York, NY 10017Tel: 212 916-0300Fax: 212 286-0304

Website: www.pefco.comwww.pefco-smallbusinesslenders.com

Contact:Timothy C Dunne, Senior Vice President & TreasurerTel: +1 (212) 916-0323Email: [email protected].

Institution

Incorporated in 1970, Private Export Funding Corporation (PEFCO) is principally engaged in thefinancing of US exports of goods and services, thereby supplementing the financing availablefrom commercial banks and other lenders. Working closely with the the Export-Import Bank ofthe United States (US Ex-Im) and with bank and non-bank lenders, PEFCO seeks to provide anefficient and reliable funding platform.

Lending

PEFCO provides a broad range of export finance programmes, serving in the capacity as a directlender and as a secondary market buyer of export loans originated by other lenders (PEFCO doesnot purchase trade receivables directly from exporters). To be eligible for financing by PEFCO,loans must be fully protected against non-payment under an appropriate guarantee or insurancepolicy issued by the Export-Import Bank of the United States (US Ex-Im) or for certain smallbusiness export loans under a guarantee issued by the Small Business Administration (SBA).

PEFCO programmes cover the entire range of the US Ex-Im-supported export finance continuum:short-term, medium-term, and long-term. Under the various programmes, PEFCO support USexports as a:

Short-term (60 days to 1 year)• buyer of working capital loans• buyer of loans financing export receivables• buyer of working capital loans• buyer of loans financing insured export receivables• buyer of insured buyer credit loans

PEFCODevelopment and Multilateral Finance Institutions (DFIs & MFIs)


Medium-term (1 to 7 years)• buyer of notes with floating and fixed interest rates• direct lender of loans with floating and fixed interest rates• buyer of notes with floating or fixed interest rates

Long-term (7 to 15 years)• direct lender of loans with fixed interest rates• buyer of notes with floating and fixed interest rates

Additionally, the PEFCO Small Business Initiative offers special programmes to support loans thatare not efficiently served under PEFCO’s standard formats.

FundingPEFCO utilizes several funding programmes to support the lending activities, including thefollowing:• 4(2) commercial paper• 3(a) commercial paper• PEFCO Secured Note Programme

All of PEFCO’s debt instruments are rated by Moody’s and Standard & Poor’s.

PEFCO



PROPARCO151, rue Saint Honoré75001 ParisFrance

Tel: +33 1 53 44 31 08Fax: +33 1 53 44 38 38

www.proparco.fr

Equity held by:AFD: 57%; other French financial institutions: 26%; other international financial institutions:13%; corporates: 3%; funds and ethical foundations: 1%.

Function:PROPARCO is a Financial Development Institution, co-owned by the French Development Agency(AFD) and public and private shareholders.

PROPARCO’s mission is to catalyse private investment in emerging and developing countries.

PROPARCO’s activities are based on three broad groups of objectives:• Economic growth, job creation, correction of market imbalances in the poorest countries;• Social and developmental objectives whose focus is the implementation of the Millennium

Development Goals;• Sustainable Development objectives and the promotion of global public goods in the major

emerging countries.

With this aim in mind, PROPARCO finances projects which are economically viable, sociallyequitable, environmentally sustainable and financially profitable.

Selective geographical strategiesPROPARCO’s sectoral strategy is adapted according to the level of development of the country inquestion and focuses on :• constructing cost-effective infrastructure for the benefit of the local people,• modernising and strengthening the financial systems,• supporting the manufacturing sector,• increasing the number of projects contributing to Social and Environmental responsibility.

PROPARCO is one of the most Africa-oriented development finance institution in Europe. Sub-Saharan Africa represents 31% of its total portfolio as of December 31, 2011. In accordancewith the will of both its public and private shareholders, PROPARCO’s first priority is to supportgrowth in Africa.

PROPARCODevelopment and Multilateral Finance Institutions (DFIs & MFIs)


PROPARCO’s financings are concentrated around five different areas:• growth and job creation through the financing of companies (exports, regional markets…),• promoting financial systems,• strengthening cost-effective private infrastructure in order to provide basic services,• protecting the local and global environment,• the development of a local entrepreneurial community.

Having been active for some time in South Africa, the Maghreb countries and in Turkey,PROPARCO extended its business area to all developing and emerging countries, i.e. over ahundred and fifty countries in Africa, Asia, Eastern Europe and Latin America.

In each of these countries, PROPARCO’s strategy focuses on Global Public Goods (GPG), Socialand Environmental Responsibility (SER) and the sharing of French expertise in these fields.

This strategy can be divided into five sectors:• energy related issues (cleaner electricity production, renewable sources of energy, gas

distribution),• supporting ‘model’ companies or banks with high social and/or environmental standards,• financial intermediation on credit lines allotted to projects with a high social or environmental

content, or which are promoting good practices,• the environment, both local and global,• investment funds committed to implementing SER action or specialising in the financing of

renewable energy projects.

PROPARCO’s financial services provide private sector companies in developing countries withlong-term financing, the possibility to cover or reduce certain types of risk and offer solutionsadapted to issues specific to these countries.• Reinforcing the equity capital of companies (a0.5 to 20 million per transaction),• providing loans adapted to each project (a3 to 100 million per transaction),• working in local currency and risk-cover (a3 to 100 million per transaction),• optimising financial engineering to respond to specific needs.

Commitments in 2011• The total amount of commitments for PROPARCO reached a865 million in 30 countries.• Forty one loans were approved during fiscal year 2011 for a total of a770.9 million.• Twenty one equity investments were approved in 2011, for a total of a66.1 million.

PROP

ARCO



SEK – Swedish Export Credit CorporationContact:Kerstin GedungTel: (+46) 8 613 8813E-mail: [email protected],[email protected],[email protected],[email protected]

Ownership structure: 100% owned by the Kingdom of Sweden

Function:SEK’s assignment is to support the Swedish export industry by extending export credits and othertypes of financing.

SEK works in co-operation with and as a complement to commercial banks.

SEK supplies short- and long term funding at attractive pricing in the areas of; Export credits,Trade finance, Project finance and direct lending to export related companies.

SEK offers financing on commercial terms at either floating or fixed rates of interest. SEK alsooffers state-supported financing at CIRR rates (Commercial Interest Reference Rate). TheSwedish CIRR system is funded.

Financing is available in a large number of currencies including some emerging marketcurrencies.

Commercial banks can co-operate with SEK in two ways.

SEK acts as a funding partner.• SEK has signed refinancing/assignment agreements with more than 40 commercial banks.• No credit risk on the Borrower (for SEK).• No documentation risk (for SEK).• Standardized way to work with SEK.

SEK acts as a Co-arranger/Co-risk taker/Participant.• SEK participates on equal terms as the arranging bank(s).• SEK assumes its share of the credit risk of the Borrower.• SEK assumes its share of the documentation risk.• SEK funds the whole transaction or its share of the transaction.• More flexible way to work with SEK.

In addition to acting as a lender SEK provides Advisory Services to both the public sector and theprivate sector.

Klarabergsviadukten 61-63PO Box 194SE-101 23 StockholmSwedenTel: (+46) 8 613 8300Fax: (+46) 8 20 38 94E-mail: [email protected]: www.sek.se

SEKDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


Saudi Export Programme (SEP)The Saudi Fund for DevelopmentP.O. Box – 50483Riyadh- 11523Kingdom of Saudi Arabia

Tel: +966 – 1 – 4658117/4659399Fax:+966 – 1 – 4659699E-Mail: [email protected]: www.sep.gov.sa

Institution

The Saudi Export Program (SEP) of the Saudi Fund for Development (SFD) was established in1420H/1999 as the official Export Credit Agency of Saudi Arabia aiming at assisting the Saudiexporters and the foreign buyers (importers) by providing them with innovative and competitivefinancial, insurance and guarantee facilities.

SEP is pleased to invite local and international companies, the establishments and commercialbanks to benefit from the services and facilities offered by its program.

SEP’s objectives:• Develop and diversify Saudi non-oil exports.• Provide competitive credit facilities to Saudi exporters and foreign buyers and/or

Banks/institutions.• Motivate Saudi exporters to discover and enter new markets by mitigating risks associated

with international trade transactions.• Maximize technical cooperation, joint financing and reinsurance arrangements with the

international and regional banks/institution involved in Trade Financing.

Basic Requirements to obtain Financing Facilities:• Exports shall be of Saudi region.• The local added value of the goods or services to be exported shall not be less than 25%• SEP does not finance exportation of crude oil.• The minimum value of transaction for financing by SEP is SR100,000 (equivalent to

$27,000).• SEP’s financing may reach up to 100% of the transaction value.• Securities required by SEP differ from one transaction to another, and it will be determined

based on the risk associated with transaction.• SEP offers financing in Saudi Riyals or US Dollars.• The credit worthiness of the beneficiaries and the risk associated with the transaction must

be acceptable to SEP.• SEP offers the facilities with competitive terms based on the nature of export transactions

and their accompanied risks, and in line with the prevailing local and international interestrates.

SEP



Parties eligible to benefit from SEP• Saudi exporters (Saudi companies & establishments).• Local buyers (Saudi companies & establishments) that wish to buy Saudi goods or services

and export them outside the KSA.• Foreign buyers (from both private and public sectors) who are interested to import Saudi

goods & services.• Local & international banks and financial institutions services.

Terms and conditionsMaximum sub-loan repayment period: The repayment period of a sub-loan will depend on thetype of goods and services being exported. The maximum repayment period for the types ofgoods described below would be the following:

Up to 2 years: consumer goods, consumables, foodstuffs, and industrial raw materials.

Up to 7 years: consumer durables, engineering spares, tools, dies, fixtures and low-value capitalgoods.

Up to 15 years: capital goods turnkey contracts and projects.

Pricing: Determination of the price is based on risk evaluation performed by SEP.

Repayment of principal: In case of facilities with a repayment period greater than 360 days,principal and mark up shall be repaid in semi-annual instalments starting 6 months from thedate of final disbursement. In case of financing with a repayment period less than 360 days, therepayment of principal would be in a lump-sum at time of maturity.

SEPDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


Società Italiana per le Imprese all’Estero(Simest SpA)Società Italiana per le Imprese all’Estero (Simest SpA)Corso Vittorio Emanuele II, 32300186 RomeItalyTel: (+39) 06 686 351Fax: (+39) 06 686 352 220Website: www.simest.it

Contact: Paolo Di Benedetto, head of Investment and Financing Evaluation Dept.Tel: (+39) 06 686 35372Fax: (+39) 06 686 35457E-mail: [email protected]

FunctionEquity shareholding in non EU companies

ObjectivePromoting the participation of Italian businesses in foreign companies.

Type of supportSIMEST can acquire up to 49% of a foreign company’s equity capital.

Eligible investorsCompanies, partnerships, cooperatives, consortia and business associations. Priority is given toinitiatives by SMEs.

SectorsSIMEST prefers to acquire interests in foreign firms which are active in the same business sectoras the Italian firm proposing the investment; no sector is excluded.

Venture capital FundsSIMEST manages venture capital funds, set up by the Italian Government, that can be added tothe normal SIMEST shareholding in the foreign company.• In countries of the following geographical areas: Far East, Eastern Europe and Balkans, Africa

and the Middle East, Central and South America – The Funds, allows for an overallshareholding (SIMEST + venture capital fund) of up to a maximum of 49% of the foreigncompany’s capital stock.

• Venture capital fund for start up firms – Consists in a minority investment (49% of the capitalstock) in the capital of new Italian (or EU) companies implementing internationalizationprojects in non EU countries.

SIMEST



Equity shareholding in EU companies

ObjectivePromoting the participation of Italian businesses in EU companies.

Type of supportMinority interest (up to 49%) in the capital stock of Italian companies and/or their subsidiaries inthe EU, including in Italy, at market conditions and without special benefits, to:• develop production investments;• support technological development programmes in businesses investing in innovation and

applied research.

SectorsSIMEST prefers to acquire interests in foreign firms which are active in the same business sectoras the Italian firm proposing the investment; no sector is excluded

SIMESTDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


SOFID – Sociedade para o Financiamento doDesenvolvimento, S.A.Av. Casal Ribeiro, 14 – 4º 1000-092 LISBOATel: +351 21 313 7760Fax: +351 21 313 7779www.sofid.pt

Contact: [email protected]

Ownership structure: controlled by the Portuguese State (60%) and by the four largestPortuguese commercial banks: Banco BPI, BES, CGD e Millennium bcp (10% each).

Function:SOFID – Sociedade Para o Financiamento do Desenvolvimento is a financial institution foundedin 2008. Supervised by the Portuguese Central Bank, it benefits from a sound shareholdingstructure and from dynamic and experienced human resources.

Based in Lisbon, SOFID has the mandate to support companies by providing them with mediumto long term financing (guarantees, debt and equity), as long as underlying investment projectspromote sustainable economic development in developing countries. SOFID’s financing is onmarket terms and its participation is always with a minority stake. Indicated by the governmentas the Portuguese financier for two EU funds (the Infrastructure Trust Fund and the NeighborhoodInvestment Facility), SOFID has, additionally, been appointed as fund manager for the recentlycreated Portuguese Trust Fund for Investments in Mozambique.

SOFID’s strategic goal is to fill in the gap between SME demand for financing in developing andemerging markets and available funds.

In terms of regional focus, SOFID can provide finance to companies in any developing or emergingcountry. Albeit, its long term strategic focus is in specific countries from four different regions:1. Sub-Saharan Africa: Angola, Cape Verde, Mozambique, São Tomé & Príncipe, Guinea-Bissau

and South Africa.2. Northern Africa: Morocco, Algeria and Tunisia.3. Southeast Asia: East Timor.4. Asia and Latin America: Brazil, Venezuela, India and China.

In terms of target companies, SOFID’s core business is to support local SME with a minimumPortuguese stake of 20%. The remaining 80% shareholding could be from local or internationalpartners. SOFID also provide loans on a case-by-case basis to large corporate and to publiccompanies (if ran in a commercial manner). In sector terms, SOFID supports projects inagribusiness, industry, energy (including renewable energy), tourism and finance. Based on awide network of partners, namely in Portuguese speaking-countries, SOFID’s risk mitigationpolicy includes co-financing with local banks.

SOFID



Swedfund International AB (Swedfund)Swedfund International AB (Swedfund)P.O. Box 3286SE-103 65 StockholmSweden

Tel: +46 8 725 94 00Fax: +46 8 20 30 93Website: www.swedfund.se

Ownership structure:Swedfund is a limited company that is 100% owned by the Swedish state.

Function:Swedfund is a bilateral Development Finance Institution and a state-owned investment companywhose function is to provide long-term finance for private sector enterprises in developing andtransition economies.

Swedfund offers risk capital and know-how for investments in emerging markets in Africa, Asia,Latin America and Eastern Europe*. Swedfund is specialised in the field of complex investmentenvironments with a high level of country risk. Together with strategic partners Swedfund shallestablish viable and commercially driven companies, thereby contributing to sustainableeconomic development in the countries of operations. The strategic partners are companiesentering a new market or expanding their present operations. Swedfund’s strategic partnerstypically share the financial risk and take the operative responsibility.

Swedfund’s main focus is on direct equity investments; however the company offers a widerange of financial instruments including loans and funds. Swedfund’s investment portfolioconsisted of 90 commitments in 36 countries by the end of 2011. Since the start in 1979,Swedfund has made almost 230 investments in more than 50 countries.

Visit www.swedfund.se for complete list of countries and contacts.

SwedfundDevelopment and Multilateral Finance Institutions (DFIs & MFIs)


Bank for Development and ForeignEconomic Affairs (Vnesheconombank – VEB)RussiaAkademika Sakharova Prospekt, 9Moscow, GSP-6, 107996Russian FederationTel: +7 (495) 721-18-63Fax: +7 (499) 975-21-43Email: [email protected] site: www.veb.ru

Function:State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank) wasestablished in 2007 by means of reorganization of the Bank for Foreign Economic Affairs of theUSSR (Vnesheconombank of the USSR).

Vnesheconombank acts to promote competitiveness of the Russian Federation economy, itsdiversification and to encourage investment activity through investment, foreign economicactivities, export credit insurance and consultancy.

Vnesheconombank is viewed as a key instrument for implementing the state economic policythat is primarily focused on removing infrastructure restrictions on economic growth, enhancingthe efficiency of natural resources utilization, developing high-tech industries, unleashinginnovative and industrial potential of small- and medium-sized enterprises (SMEs), as well asensuring support for exports of industrial production and services.

In the circumstances of a global financial meltdown, Vnesheconombank was authorised to extendloans to cash-strapped Russian companies and banks to refinance obligations towards foreigncreditors and to extend subordinated unsecured loans to Russian financial institutions inaccordance with Federal Law of the Russian Federation No. 173-FZ On Additional Measures forSupporting the Financial System of the Russian Federation and also to support Russian stockmarket through purchasing Russian securities.

CapitalThe bank's exact authorized capital is to be determined by the government, and it is to be noless than R70 billion.

Vnesheconombank


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The Citi World Ofﬁcial Agency Guide 2012-2013 Pandit Chief Executive Officer, Citigroup...

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