Attractive Terms for Foreign Lenders

When investors show an interest for Norwegian shipping and other export industries, they seek competitive terms for their loans. Since 1962 Eksportfinans has provided a supportive and competitive environment for foreign lenders.

"Our mandate is to support the Norwegian export industry. For export out of Norway, Eksportfinans is the sole provider of officially supported credits to, for instance, the OECD's (Organisation for Economic Cooperation and Development) arrangement for export credits," says Tellef Tellefsen, head of sales at Eksportfinans. "In addition, due to our AAA-rating, we provide very attractive terms on commercial loans."


Eksportfinans is an institution dually owned by the Norwegian government (15%) and Norwegian banks (85%), and export credits are offered to foreign buyers in order to finance their purchases of Norwegian goods and services.


Favourable Interest Rates
Government-supported export financing is offered with fixed interest rates determined by the OECD - the so-called CIRR (Commercial Interest Reference Rate). "Under this plan, Eksportfinans is in a position to lock in fixed interest rates early in the project phase, and this is obviously of particular interest in today's low-interest environment," Tellefsen says.


"Commercial lending in connection with export financing - including ship financing - is offered at floating or fixed interest rates in all convertible currencies," Tellefsen explains. "We have favourable funding based on our extremely high credit quality. Thus, we can offer very competitive commercial interest rates."


Shipowners and shipbuilders play key roles in Eksportfinans' activities. "We can offer long-term ship financing in connection with ships that are built at Norwegian yards, but other important sectors include maritime equipment, offshore, aquaculture, hydroelectric power and defence equipment."


"Newbuilding of ships at Norwegian yards, ship's equipment and offshore oil and gas projects constitute the dominant sectors of our export lending activity. We are heavily involved in the areas where the Norwegian maritime cluster is particularly strong," says Tellefsen.


Currently, such areas include the financing of specialized offshore vessels to be built at Norwegian yards and equipment and services for the numerous rigs that have recently been ordered at foreign yards, most of them with Norwegian interests.

"Our order book is at record levels, and this is a direct result of following, every single day, the successful Norwegian maritime industry very closely," Tellefsen says, adding that the Eksportfinans staff's horizons stretch far beyond their offices in Oslo.

"Although we are located in Oslo, we spend most of our time on the Norwegian coastline or in the Far East - because that's where the business is," he says.


UlsteinVerft400x317.jpg (77568 bytes)

Related articles

Latest articles

Ship Energy Efficiency: The Fourth Wave

Shipping has seen three waves of energy efficiency trends since 2007. The latest buzz is the Big Data revolution.

Sustainable Fish Farming Solutions: From Feed to Egg

The challenge of rising fish feed and sea lice costs is stimulating new sustainable technology solutions in Norwegian aquaculture. In the future, producers might raise salmon in egg-shaped offshore farms.

Standardization Key During Low Oil Price

The Norwegian petroleum industry is focusing on standardized solutions, inspired by Formula One and Lego, to help tackle rising field development costs.

Blue Growth for a Green Future

The Norwegian government recently launched its new maritime strategy “Blue Growth for a Green Future” aimed at keeping the country’s second largest export industry competitive and sustainable.

New Development Licenses Spur Ocean Farming

Norway has initiated free development licenses to spur new technology concepts to tackle the aquaculture industry’s acreage and environmental challenges. Many of the applicants are innovative ocean farms.

Bucking the trend: Norwegian Shelf Still Attractive

The Norwegian Continental Shelf continues to be attractive even amidst the low oil price environment. Statoil’s giant Johan Sverdrup oil field development is just the latest example.

British Showing Great Interest in “Frozen at sea”

The British are the world’s largest consumers of cod. 70 percent is used in the “fish and chips” market. Lately several Norwegian owners of trawlers have discovered the British market for the “frozen at sea” concept.

The many reasons to choose Norwegian seafood

There is an ongoing debate regarding the pros and cons of eating wild or farmed fish, or, in fact, eating seafood at all. In this article we look at the arguments for and against wild and farmed fish. Seafood is not just a...

New Ways to Enhance Oil Recovery

Norwegian companies are testing more advanced ways to enhance oil recovery, everything from converting shuttle tankers to stimulate wells and springing titanium needs inside liner holes to open up tight formations.