Eksfin usually requires a commercial bank, development finance institutions, other export credit agencies, or similar financial institutions to participate in the financing.

Eksfin can provide both loans, guarantees (pure cover) and funding, and has the flexibility to participate in multiple various transaction structures depending on the borrower’s need and the bank’s preferences.

A bank is expected to take the role as the lead arranger for the transaction. A commercial bank with a minimum international credit rating of BBB+ is usually required as an agent bank. In some cases, Eksfin may take this role. 

Loans

Eksfin may offer a loan in collaboration with an acceptable bank, covering part of the risk in the transaction. The bank can cover part of the risk as a co-lender or a guarantor.

A bank acceptable as a guarantor to Eksfin has a minimum international credit rating of BBB, and must provide an on-demand payment guarantee in favor of Eksfin for a minimum of 10% of the loan amount. Eksfin will always use the lowest rating by the four credit rating agencies (Nordic Credit Rating, S&P, Fitch and Moody’s) as guidance. The bank will take credit risk on equal terms and conditions (pari passu) as Eksfin.

Under certain circumstances, and for small transactions, a bank with a lower credit rating may be considered. Eksfin can also collaborate with a bank with a lower rating as a co-lender. As an alternative to providing a guarantee, the bank will then provide a part of the loan equivalent to at least 10% of the total loan facility. Eksfin can provide the majority part of the loan.

Eksfin may also participate in a syndicate loan with multiple lenders. If there are multiple lenders in a transaction for which a CIRR interest rate is chosen for the Eksfin loan/funding, and in a country classified by the OECD as category 0, then a commercial bank must guarantee for a minimum of 25% of the Eksfin loan.

Guarantees

Eksfin may offer guarantees (insurance) to other lenders (including pension funds) in a transaction. Eksfin’s guarantees are AAA-rated state guarantees and can cover both commercial and political risk. Coverage of commercial risk is limited to 90% of the total loan amount.

Eksfin will take credit risk on equal terms and conditions (pari passu) as other banks and guarantors in the transaction. 

Funding

Eksfin may offer a loan (funding) guaranteed by an acceptable bank, in the form of an on-demand payment guarantee in favor of Eksfin for 100% of the loan amount.

On-lending

Eksfin can provide funding to foreign banks for the purpose of financing Norwegian export transactions (“on-lending”) involving foreign buyers. The Eksfin loan to the bank will be limited to 90% of the total loan facility to the buyer, and the bank has to provide the last 10% of the total loan facility as a direct loan to the buyer. Eksfin’s credit risk will be limited to the bank, while the bank covers 100% of the credit risk on the buyer (project/borrower).