1. 24/03/2014 1
BUYING NORWEGIAN GOODS AND SERVICES?
WHAT GIEK OFFERS
GIEK
Jan Inge Roald, Senior Vice President
Singapore, March 20 2014

2. What is GIEK?
✓Guarantee Institute for Export Credits
(GIEK). An export credit agency (ECA).
✓GIEK offers financial guarantees in order
to promote Norwegian exports.
✓GIEK does NOT offer loans

3. 3
✓Owned by and guarantees in the
name of the Kingdom of Norway
✓Politically independent Board of
Directors
✓GIEK is located in Oslo, approx.
80 employees
✓GIEKs most important product is
guarantees for long term loans
✓Main overall guarantee line of
NOK 145 billion
What is GIEK (cont.)?

4. 24/03/2014 4
GIEK’s main goals
✓Promote Norwegian exports
✓Guarantee premiums are to
cover losses and administrative
costs

5. 2006-2012: Strong growth in guarantees
• 7X growth in guarantee
liabilities
• From political risk to
commercial risk
• From a wide range of different
ships and ferries to offshore
vessels and drilling rigs.
0
10
20
30
40
50
60
70
80
90
2006 2007 2008 2009 2010 2011 2012 2013
Guaranteed amounts, NOK bnN/A
Other
Banking and Financial
Services
Shipping
Fishing
Water and Sanitation
Power Generation and
Distribution
Oil and gas

6. 03.04.2013 6
Total guarantees:
NOK bn 81,7
Guarantees as of 31.12.2013
Oil/gas and maritime industry makes up for 90 % of the guaranteed amounts
85 %
5 %
Oil and gas
Shipping
Drillships and
semis; 40%
Construction
vessels; 12%
AHTS; 11%
PSV; 11%
Seismic; 6%
FPSO etc; 3%
Other
offshore;
12%
Shipping; 5%
Oil and gas and shipping 2013:
NOK bn 73,5

7. 7
What does GIEK guarantee for?
✓Guarantees for borrowers’ long-term
debt
✓Borrower can be either the buyer or
end user of Norwegian exports
✓Vessels and plants built abroad with
Norwegian equipment
✓Other export guarantees (owners’
advances, performance guarantees,
etc.)

8. 24/03/2014 GIEK88
Financing an OSV
✓Price MNOK 333
✓Yard: Norwegian
✓Shipowner: Foreign or Norwegian
✓Loan from Eksportkreditt to Shipowner of MNOK 200.
✓GIEK guarantees for MNOK 140 (70%), Commercial Banks MNOK 60 (30%)
✓Pari passu participation with banks (security, pricing and other terms)
✓Secured by 1st priority mortgage in vessel and earnings
✓Market based p.a. premium plus commitment fee, arrangement fee etc.

9. 9
Example: OSV Ltd.
✓70 % GIEK-covered
✓12 years repayment, however no longer
than commercial banks
✓One loan agreement for the facility
133 MNOK Equity
200 MNOK Loan
Tranche B: 30%
Direct risk and
funding by commercial
bank
Tranche A: 70%
Guaranteed 100% by GIEK
Funded by Eksportkreditt

10. 24/03/2014 GIEK1010
Financing a subsea vessel
✓Price MNOK 700
✓Yard: Foreign
✓Shipowner: Foreign or Norwegian
✓GIEK guarantees for MNOK 200 (80% of Norwegian content of MNOK 250)
✓Loan from Commercial Banks and Eksportkreditt to Shipowner of MNOK 490.
✓GIEK guarantees for MNOK 200 (41%) ii) Commercial Banks MNOK 290
(59%)
✓Pari passu participation with banks (security, pricing and other terms)
✓Secured by 1st priority mortgage in vessel and earnings
✓Market based p.a. premium plus commitment fee, arrangement fee etc.

11. 24/03/2014 GIEK11
How we finance
✓ Resembles a bank credit process
✓ Pari passu participation with banks (security, pricing and other terms)
✓ Secured by 1st priority mortgage
✓ Per annum premium plus commitment fee plus possibly other fees
✓ May be stricter than banks relating to environment issues and CSR
✓ GIEK works with the banks, do not compete with them
✓ Guaranteed amount not to exceed Norwegian content (or 80/85 % of this)
✓ Norwegian deliveries normally to contain 30 % Norwegian content in order to be Norwegian
✓ GIEK normally not involved in the loan documentation process, but changes are taking place

12. 12
How we finance-Buyer credit- Maximum rules
• Guarantee for loan from a bank
• OECD rule: Minimum 15 % of contract value as cash payment
(or 20 % in case of vessels), the rest as loan
• GIEK may underwrite up to 90 % of a loan (commercial risk)
• 12 years for ships

13. GIEK’s ”normal” practical requirements
(for long-term financings):
✓GIEK’s formal application form filled in,
exporter, prospective borrower or bank can
apply
✓Bank assessment of the project
✓Bank term sheet
✓Reasonable risk
✓Much of the same requirements as
commercial banks
✓Due diligence, also due diligence of
environmental risk and CSR

14. 14
What we finance – characteristics
✓ Historically GIEK has done project finance
✓ Since the finance crisis in 2008 guarantees
related to a number of medium sized and
larger corporates
✓ Many offshore vessels and drilling vessels
✓ Many “Norwegian” Owners

15. 24/03/2014 GIEK15
What we finance – types of vessels
Offshore vessels:
✓ Drilling Vessels
✓ Anchor Handling Tug Supply (AHTS)
✓ Platform Supply Vessels (PSV)
✓ Construction Vessels
✓ Well Intervention Vessels
✓ Diving Vessel
✓ Subsea Vessels
✓ Jack-ups
✓ FPSOs
Other vessels:
✓ Ferries
✓ Offshore Wind Support Vessels
✓ Chemical Parcel Tankers
✓ Tugs

16. GIEK is open to all industries.
Examples:

17. Case I:
Hydro-electric power station in Indonesia
Norwegian Tinfos AS owns 95 % of the stocks in the project
company Sulawesi Mini Hydro Power, and will deliver goods and
services.
Buyer credit guarantee:
✓ Norwegian goods and services represent 50 % of total project
deliveries
✓ GIEK has issued a buyer credit guarantee measuring up to the
amount of the Norwegian deliveries
Investment guarantee – political risk:
✓ GIEK has issued an investment guarantee of MUSD 4,7
✓ GIEK covers Tinfos’ risk for lost equity as a consequence of
political measures/occurences of 80 %
24/03/2014 17

18. Case II: Offshore Wind Farm outside Belgium
✓Northwind is a 216 MW offshore wind farm with 72
windturbines
✓GIEK was involved at an early stage, crucial for attracting
interest from other commercial financial institutions in this
EUR 914 million project.
✓Norwegian delivery:
✓ Cables from Nexans and Parker Scanrope worth about NOK
500 million.
✓Project financing: Cooperation between Export Credit
Agencies, commercial banks and the European Investment
Bank
✓GIEK participate with a buyer credit guarantee, thereby
providing for part of Northwinds long term loans.
24/03/2014 18
Images: Belwind wind farm,
Zeebrugge, Belgia

19. Case III: Solarpower plant in South Africa
Norwegian Scatec Solar AS:
✓ co-owner
✓ major supplier
75 MW solar power plant «Kalkbult» in South Africa
3 different bond guarantees from GIEK
✓ The South African buyer company receives:
✓ Advance payment guarantee securing 15 % of the
deliveries
✓ Completion guarantee securing 10 % of the contract
The loan-providing South African bank receives:
✓ Guarantee to secure Scatec Solar’s share of equity in
the buyer company
24/03/2014 19

20. Case IV:
The SMB contracts
Norwegian AquaFence
✓ certified, portable flood protection system that can be assembled quickly and
easily.
✓Backed with a guarantee from GIEK, the export contract was secured for AquaFence.
The guarantee is issued towards the lender Export Credit Norway and amounts to
NOK 7,3 million. (buyer credit guarantee)
✓AquaFence saw its beginning in 1999, after two years developing the flood
protection system in co-operation with SINTEF, Innovasjon Norge, etc.
03.04.2013 20

21. 03.04.2013 21
Thank you
www.giek.no/en