This document summarizes Finnvera's export financing services for a Finland-Nigeria business seminar. Finnvera is Finland's official export credit agency, providing specialized financing and guarantees to promote Finnish business competitiveness abroad. It offers various financing products to cover political and commercial risks, including letter of credit guarantees, buyer credit guarantees, and export receivable guarantees. Finnvera has a flexible cover policy for Nigeria but currently no exposure there, though experience is good but limited. Its largest markets are in Asia and Europe.

1. Finland-Nigeria Business Seminar December 12, 2012
Export Financing
Anja Pakkala
Senior Adviser, Sub-Saharan Africa

2. Finnvera
› Specialized financing company owned
by the government of Finland
› Guardian authority Ministry of
Employment and the Economy
› Promotes the competitiveness of
Finnish enterprises
› Finnvera and its subsidiary Finnish
Export Credit Ltd – status of the
official Export Credit Agency (ECA)
11.12.2012

3. Finnvera plc
A specialised financing company owned by the State of
Finland – promoting the competitiveness of Finnish
enterprises
SME financing Export financing
Loans, domestic guarantees, Export credit guarantees,
venture capital investments financing of export credits,
interest equalisation
11/12/2012 3

4. Risks covered
› Political risk
› Restrictions on currency transfers or currency change
› Insolvency of a State
› Expropriations
› War, insurrection or some other state of emergency
› Commercial risk
› The buyer’s inability or unwillingness to pay
11/12/2012 4

5. International cooperation
Frame of reference for export credit guarantees – creation and
development of common principles
WTO OECD EU
The Arrangement State aid rules
Self-sustainability Environmental and Social Due Directive on medium/long-term
Diligence guarantees
Anti-Bribery Measures Communication on short-term
Sustainable Lending export-credit insurance
Paris Club Berne Union
Cooperation between export credit
Informal group of official creditors agencies
Equal treatment of creditors Best practices for export credit and
investment insurance
Exchange of information
11.12.2012 5

6. Finnvera cover policy in Nigeria
Country category: 5 out of 7
Cover policy: flexible cover policy depending on the
› size of transaction
› maturity profile
› quality of the buyer, borrower, guarantor
Currently no exposure.
Experience is good, but limited.
11/12/2012 6

7. Finnvera services
› Finnish/International bank as a financier
› Letter of Credit Guarantee
› Insurance for a Bank confirming a Letter of Credit
› The L/C must be irrevocable and conform to the rules issued by the
International Chamber of Commerce (ICC)
› Buyer Credit Guarantee
› Particularly used to finance purchases of capital goods
› Covers credit risks caused by the Borrower and the Borrower’s country
› Credit insurance to exporters
› Export receivable guarantee
11/12/2012 7

8. Letter of Credit Guarantee
Delivery contract
Exporter Buyer
With a requirement
of an irrevocable
L/C as a term of
Confirmation of an L/C Request to issue an L/C
payment
Confirming bank Issuing Bank
Request to
confirm an L/C
Letter of Credit
Guarantee
Finnvera
11.12.2012 8

9. Buyer Credit Guarantee -
if the repayment period is two years or longer
Credit funds
85 %
Exporter Lender
Delivery Cash payment Buyer Credit
15 % Guarantee
Buyer Credit
Foreign Buyer/
Finnvera
Buyer’s Bank
11.12.2012 9

10. Commitments by region, 30.6.2012
Total 11.0 MEUR
11,9 9% 12,8
2,0
14% Asia
CIS
41%
Central and Eastern Europe
Latin America
4%
19,7
Middle East, North Africa
Sub Saharan Africa
40,2 Industrialised countries
20%
3%
9% 9,4
4,0
11.12.2012 10

11. Commitments by sector
4,000
3,500
3,000
2,500
MEUR
2,000 12/2010
12/2011
1,500
6/2012
1,000
500
0
11.12.2012 11

12. 15 largest markets
30.6.2012
1,800
1,600
1,400
1,200
1,000
800
MEUR
600
400
200
0
Commitments Offers
11.12.2012 12