Cases: Maritime

Eksfin can help sub-suppliers with financing

Both exporters and their suppliers can get government guarantees from Eksfin. This is how we helped Mekanisk Service Halden, who won a large contract with Nexans Norway

Foto: Mekanisk verksted Halden


Exporter: Mekanisk Service Halden

: The provision of guarantees in connection with a new large contract with Nexans. The contract concerns the delivery of cable reels.

Our contribution: 
Eksfin relieves Sparebank 1 Østfold Akershus with 50% of counter-guarantees amounting to MNOK 39.85.

When Mekanisk Service Halden was about to win a large contract in relation to their earlier turnover and balance level, they needed to provide two new guarantees for their client cable manufacturer Nexans Norway AS. Nexans manufactures all types of cables: subsea cables, fibre cables, industrial cables and power cables, for which, Mekanisk Service Halden was to deliver cable reels.

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‘Eksfin makes it easier for banks to watch their customers grow and win new export contracts,’ says Customer Adviser, Catherine Grung Høgebøl. ‘Eksfin can share the risk with banks for practically all types of guarantees that exporters or sub-suppliers must provide in connection with export contracts. Our risk mitigation can help companies throughout the export value chain and Eksfin can relieve frameworks or individual guarantees,’ she emphasises.

Guarantees are often crucial when a ‘small’ supplier bids on a large contract with a major exporter

In general, Norwegian exporters must provide guarantees for their international buyers when entering into contracts. These guarantees ensure the buyer compensation if the Norwegian exporter does not fulfil their obligations.
A so-called counter-guarantee from Eksfin mitigates the risk for banks. Eksfin can also provide such counter-guarantees for exporters’ sub-suppliers.

Mekanisk Service Halden is located in Svinesundsveien in Halden. It has 61 employees and is preparing to extend its factory. The extension is a result of several years of good business operations, and a desire for continual expansion.

Eksfin was professional and positive towards our need for guarantees in connection with our large contract with Nexans Norway. This assignment will run for two years + the guarantee period. We would not have been able to accept the assignment without the guarantees. This secures jobs for a long time, both here and at our sister company in Poland.
John Roger Eriksen, General Manager of Mekanisk Service Halden

Always with a bank

When Eksfin provides guarantees, it is always in conjunction with a bank. The bank issues the actual guarantee to the buyer, but Eksfin shares the risk with the bank in the form of a counter-guarantee. Hence, Eksfin extends capacity and triggers exports.

The cooperation between Eksfin and SpareBank 1 Østfold Akershus made it possible for our customer to partake in the tender and win the contract with Nexans Norway AS. As a bank we are here to help local companies succeed, to secure local jobs and contribute to a vibrant local community. The bank and client wouldn’t be able to sustain this on their own without financial support from Eksfin to mitigate risk. The cooperation agreement between the bank and Eksfin is therefore perfect for us and enables things to happen.
Sondre Aabø, Company Adviser at Sparebank 1 Østfold Akershus