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OECD term for export credit loan
- 2. A. Established 30 September 1961. International Monetary Fund (IMF) the World Bank, B. Sources (www.oecd.org). Organization for Economic Cooperation and Development (OECD) Export Credit as Project Finance OECD CIRRs(Commercial Interest Reference Rates)
- 3. OECD Member, 35 Countries Ireland,estonia,Austria,Aus tralia,Belgium,Iceland,Pola nd,Denmark, Germany, France, Finland,Shouth Korea, Luxemburg, Canada,Chech Republic, Netherland,United state, Mexico, Norway, United Kingdom, Chile, Portugal,Japan,Sweden, Switzerland,Slovakia, Turkey,Spain,Greece, New Zeland, Hungary, Israel, Italy
- 4. Euribor maturity / rate 08-31-2017 08-30-2017 08-29-2017 08-28-2017 08-25-2017 Euribor interest rate - 1 week -0.378 % -0.379 % -0.380 % -0.379 % -0.379 % Euribor interest rate - 2 weeks -0.377 % -0.377 % -0.379 % -0.378 % -0.376 % Euribor interest rate - 3 weeks - - - - - Euribor interest rate - 1 month -0.373 % -0.372 % -0.372 % -0.372 % -0.371 % Euribor interest rate - 2 months -0.339 % -0.339 % -0.340 % -0.341 % -0.341 % Euribor interest rate - 3 months -0.329 % -0.330 % -0.330 % -0.329 % -0.329 % Euribor interest rate - 4 months - - - - - Euribor interest rate - 5 months - - - - - Euribor interest rate - 6 months -0.273 % -0.273 % -0.273 % -0.273 % -0.272 % Euribor interest rate - 7 months - - - - - Euribor interest rate - 8 months - - - - - Euribor interest rate - 9 months -0.213 % -0.211 % -0.212 % -0.211 % -0.212 % Euribor interest rate - 10 months - - - - - Euribor interest rate - 11 months - - - - - Euribor interest rate - 12 months -0.161 % -0.161 % -0.160 % -0.159 % -0.159 % Euribor Floating Rate
- 5. Commercial Interest Reference Rates (CIRRs) 2
- 6. Europe Financial market (FIXED Rate)commercial Interest Reference Rate Cost of Money of Borrower: Interest +Spread +fees+bank Charge Tenor >8.5 Yr Tenor 5 -8.5 Yr Tenor 5 Yr OECD CIRRs (OECD term) Fees ;0.3% p.a Margin ;0.40 %p.a Tenor <15 Yr Tenor >8.5 Yr :1.03 % pa Tenor 5 -8.5 Yr: 0.70 % pa Tenor 5 Yr :0.39 % pa Negotiable
- 7. Under the interest equalisation agreement the financial institution will pay a fixed CIRR rate to FEC and receive a floating rate (normally Euribor or Libor) plus a spread from FEC. According to the decision of the Ministry of Employment and the Economy the interest equalisation maximum spreads to be added to the reference rate are as follows: Repayment period in years Credit amounthttps://www.investopedia.com/terms/b/basispoint.asp under 5M€ 5-25 M€ 25-50 M€ over 50M€ 5 or under 50 bp 40 bp 35 bp 30 bp over 5 - 10 50 bp 45 bp 40 bp 40 bp over 10 50 bp 50 bp 45 bp 40 bp Under the interest equalisation system a financial institution arranges for its client a fixed CIRR-based export credit. The responsibility of funding the transaction lies on the financial institution arranging the credit. An interest equalisation agreement with FEC provides the financial institution a hedge, which converts the fixed CIRR-based receivable into a floating rate receivable. FEC : Euro<10 year =1.03-0.272+0.4% Finnvera : 0.3% Bank Charges : 1.458 % +Bank Charges https://www.finnvera.fi/eng/export/export-credits-and-interest- equalisation/interest-equalisation 3 3% Debt rate for NON OECD countries shall be acceptable
- 8. Euro down 21% from $US from 2011 JPY and IDR down 33 % from $US from 2011 1USD=0.934405 Euro from 2011 1USD=0.741620 Euro from 2016 1USD=9024 IDR from 2011 1USD=13471 IDR from 2016 1
- 11. IPP (state company) (SPC/SPV) EQUITY BASE LOCAL 20% foreign 10% EPC Local Content Foreign Bank Credit Export Principal EPC Import Content Off-takerAssociated Local bank IPP pulau pramuka– Jakarta Project Financial flow Associated paid to EPC local Foreign Bank send project loan for foreign portion Inter bank dealing/communication Associated Bank Paid to Foreign bank Associated Bank send “project loan “ to IPP Equipment supply ( Foreign&local) End user Paid Electricity to associated bank on behalf of Ipp IPP supply electricity to end user 70% debt, 10year tenor,5% interest 30% debt, 10 year tenor, 5% interest 20 year contract FINANCIAL FLOW
- 12. Group Implementing (steam Turbine) System implementing EPC Group FINANCING Group MATTI MANNER CEO www.prohoc.if TAPIO GYLLING COO www.woimacorporation.com SHAUKAT ALLY COO www.danskebank.no Moody’s: Aa1 Standard & Poor’s: AA+ owned by the State of Finland www.finnvera.fi Finnish Export Credit Ltd.
- 13. 2015 Exporter: Konecranes Finland Corporation Guarantee Holder: Deutsche Bank AG, London Branch Lender: Finnish Export Credit Ltd Arrangers: Deutsche Bank AG, London Branch, and Credit Suisse AG Buyer: PT Pelabuhan Indonesia III (Persero) Buyer's country: Indonesia Exported goods/Project: Container handling equipment Guaranteed amount: Approximately USD 121.2 million Credit period: 5 years Project classification: A Environmental and social impact information on project in category A: • 2015 Exporter: Wärtsilä Finland Oy Guarantee Holder: Standard Chartered Bank Lender: Finnish Export Credit Ltd Arranger: Standard Chartered Bank Buyer: PT Perusahaan Listrik Negara (Persero) Buyer's country: Indonesia Export transaction/Goods: gas fired generating sets, ancillary equipment and related services Guaranteed amount: Approximately EUR 70 million Credit period: repayment in 12 years Environmental classification: A Environmental impact information on projects in category A:
- 14. • 2017Exporter: Wärtsilä Finland Oy, Finland Suppliers: PT PP and PT Wärtsilä Indonesia, companies incorporated in Indonesia Guarantee Holder: KfW IPEX-Bank GmbH Arranger: KfW IPEX-Bank GmbH Lender: KfW Buyer and Borrower: PT Perusahaan Listrik Negara (Persero), a company incorporated in Indonesia. Export transaction/Goods: delivery and installation of 16*20V34DF generating sets and ancillary equipment to the 140 MW dual fuel power plant to be constructed and located in Kalimantan Tengah, Indonesia. Country of Export transaction: Indonesia Guaranteed amount: EUR 82.7 million Credit period: 10 years Project classification: A Source of environmental and social impact information (projects in category A): Basic information as well as information on environmental and social impacts were published at least 30 days before the guarantee agreement was signed. Date of publication: 8.8.2017 International standards applied in benchmarking: IFC Performance Standards and relevant EHS Guidelines. Contact point: environment (at) finnvera.fi Information published: 9 October 2017 • 2016 Exporter: Wärtsilä Finland Oy, Finland Suppliers: PT PP and PT Wärtsilä Indonesia, companies incorporated in Indonesia Guarantee Holder: Mizuho Bank, Ltd Arranger: Mizuho Bank, Ltd Lender: Finnish Export Credit Ltd Buyer and Borrower: PT Perusahaan Listrik Negara (Persero), Export transaction/Goods: delivery and installation of 13*20V34DF generating sets, ancillary equipment and related services to the 135 MW Flexicycle power plant to be constructed and located in Lombok, West Nusa Tenggara, Indonesia. Country of Export transaction: Indonesia Guaranteed amount: EUR 74.3 million Credit period: 10 years Project classification: B Environmental and social impact information: Construction of a gas fuelled power plant. Main items of the E&S review were land acquisition, workers’rights and working conditions and impacts to the marine ecosystem. International standards applied in benchmarking: IFC Performance Standards and relevant EHS
- 15. EPC (WIOMA Finland) FEC is the Finnish export credit agency that guarantees the project debt Finnvera is a Finnish development finance company that provides long term risk capital and IPP (Indonesia)
- 16. Need one year after signing loan
- 17. Shaukat Ally (CEO) farhanfirass@yahoo.com WA +62 813 8181 6165