Seaway 7 vessel in action during wind farm construction. (Photo Seaway 7)

Eksfin provides EUR 180min loan guarantees backing Seaway 7 cable installation at huge offshore wind park in Taiwan

State-backed export credit agency Export Finance Norway (Eksfin) provides NOK 2bn (EUR 180m) in loan financing to the Hai Long wind park in the Taiwan Strait on the back of services rendered by Seaway 7. The transaction increases Eksfin’s total financing commitment to the global offshore wind market towards EUR 2,6 billion. Joint-venture Hai Long development partners Northland Power Inc. of Canada and Japan’s Mitsui & Co.,Ltd. won construction approval for the project in March this year. Situated between 45 and 70 kilometres off Taiwan’s Changhua coast, on completion the 1 gigawatt (GW) offshore wind park will be the largest in Taiwan with capacity to supply clean energy to more than one million households. Full commercial operation is expected in 2026/2027, with energy supplied according to power purchase agreements already in place. Read More

The funds will be used for the construction and development of the East Anglia THREE offshore wind farm in the UK.

Eksfin provides EUR 450 million in guarantee financing to Iberdrola

Export Finance Norway (Eksfin) deepens its commitment to the international offshore wind market by providing loan guarantee financing to Spanish energy company Iberdrola. The transaction supports Norwegian exporters’ participation in the East Anglia Three wind park project in the UK. WIth htis transaction Eksfin reaches a new milestone of NOK 20 billion (EUR 1.8 billion) in loans and guarantees to offshore wind projects worldwide. Read More

Næringsminister Vestre

A new loan guarantee scheme in the wake of high energy prices is ready

At the end of September, the Norwegian Government signalled the introduction of a business loan guarantee scheme in the wake of high electricity prices. The scheme has now been passed by the Norwegian Storting and approved by the EFTA Surveillance Authority (ESA), and is in operation from today. It gives me great pleasure to announce that we are now ready to receive applications for the loan guarantee scheme. With this scheme, we will contribute to making it easier for energy-intensive companies with liquidity problems in the wake of high energy prices to get help from their bank. Minister of Trade, Industry and Fisheries, Jan Christian Vestre Companies deal with their banks The loan guarantee scheme mitigates the risk of banks when giving loans in that Eksfin guarantees up to 90 per cent of the borrowed sum the companies receives. This will contribute to companies getting loans they would not otherwise receive or would have cost more without the guarantee. Each bank must enter into an agreement with Eksfin, but companies deal with their banks. This is a temporary scheme lasting until the end of March 2023. ‘The financial situation has made the work difficult. I understand that many companies have been impatient, but we have been working intently on the last details. A good solution is finally in place,’ says the Minister of Trade, Industry and Fisheries. For companies with acute liquidity problems The loan guarantee scheme is a nationwide scheme for companies (regardless their size), who have their undertakings in Norway, and meet the criteria for energy intensity and increasing energy prices in the company’s area. The energy intensity of the company in the first six months of 2022 must have been at least three per cent measured as actual energy costs (energy consumption and transmission charges, exclusive VAT) as part of the turnover in this period.  Read more about the terms and conditions of the scheme When assessing loan applications, banks shall emphasise the eventuality that the company receiving the loan would have been able to pay the energy costs under normal market conditions (without the extraordinary high energy prices). Press release from Read More

Tone Lunde Bakker innlegg energirapporter

A public-private sector cooperation must be put into place to lift major financing

Contribution of CEO Tone Lunde Bakker in connection with report launches on Norway’s energy industries in Oslo 21, November 22. Export and emission cuts are core elements in Eksfin’s mandate, Eksfin has therefore contributed to financing the renewables report in recent years. This year, energy has become uniquely actual in terms of both security and financial policies, and continues to be so in relation to industry and the climate. I would like to say five things based on the situation of the energy industries from Eksfin’s standpoint: 1.     Firstly: sustainability This word has multiple meanings. We must cut both emissions, which gives climate sustainability, and restructure and build a profitable Norwegian business community, i.e., financial sustainability.In other words: emission cuts must be profitable otherwise financing won’t be available, and if it’s not financed, it won’t happen. 2.     Secondly: public-private sector cooperation All other countries currently experiencing success with green growth have exerted public and private-sector muscle, by which I mean joint financial muscle, along with good public regulation, private initiative and knowledge. E.g., the EU Green deal and Fit for 55 and the USA’s Inflation Reduction Act. We should have equivalent initiatives in Norway. The projects, risk and investments are massive, and extend over many years, as such the State and business community must enhance them together at the same time. Example: Earlier a start-up might need MNOK 17 – now it can be BNOK 17, e.g., battery, hydrogen and offshore wind.Eksfin therefore uses a lot of resources to coordinate tightly with companies, clusters and other public actors. We have a pipeline of more than BNOK 70 for green projects. 3.     Thirdly: Europe Amidst national business and global ecological requirements, we must continue to help our European neighbours and trading partners through an accelerated energy shift. At the same time Europe is the largest market for Norwegian offshore wind suppliers. Therefore, Eksfin is working closely with other Nordic and European export credit agencies to finance projects and build competence together. So far, Eksfin has given BNOK 10 in financing for global offshore wind projects – most in Europe. We have done this with Danish, Swedish and French export credit agencies. 4.     Fourthly: value chains The petroleum, maritime and seafood industries have built widespread profitable value chains in Norway. We must accomplish the same with the new green industries. New initiatives like the Entry programmes for offshore wind, in which Eksfin participates with inter alia IN and Norwep, are therefore paramount. 5.     Fifthly: the shift Today we will be presented a report on fossils and a report on renewables. Norway has had a foothold in each industry for decades. Eksfin financed a lot of oil-related industries prior to 2015, but afterwards we have consistently financed more offshore wind, solar power and other environmentally-friendly technology. For some companies, the cash flow and security arising from oil and gas projects are essential in order to invest in the people, knowledge and equipment that will be required to deliver green solutions in years to come. Read More