Product

Construction loan guarantee

By issuing guarantees to banks for shipbuilding loans, Eksfin helps Norwegian shipyards and coastal repair shops gain better access to financing..

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About the product

A construction loan
guarantee helps shipyards secure competitive financing for costs incurred
during the construction period

How the construction loan guarantee works

A construction loan guarantee ensures repayment of loans that banks issue to Norwegian shipyards for constructing and/or converting new ships. Eksfin can also offer an advance payment guarantee, which ensures that shipowners are refunded any advance payment if the shipyard does not deliver as agreed..

Eksfin offers construction loan guarantees to:

Norwegian shipyards and repair shops with contracted construction projects
Norwegian manufacturers of offshore installations, such as wind turbine components
Norwegian and international shipping companies that pay shipyards in advance for construction projects

Conditions and structure

Eksfin guarantees up to 75%.

Export activities are not a requirement, therefore the buyer can be Norwegian or foreign.

Construction loan guarantees are issued for loans for the construction or conversion of:

different types of ships, vessels and other mobile offshore units
vessels of less than 100 gross tonnage that can be registered in the Norwegian Ship Register and are to be used commercially
vessels with no propulsion machinery
offshore units or the manufacturing of significant sub-contracts for such units

Advance payment requirements

The buyer of the ship or unit must pay an agreed share of the purchase price in advance during the construction period. Eksfin can guarantee this advance payment.
Advance payment guarantees and construction loan guarantees can be used at the same time.

The orderer/buyer’s ability to pay must be documented. In terms of newbuilds, this will in practice mean that long-term financing for the ship must be secured.

The construction loan guarantee ends when the buyer (the shipping company) has paid the shipyard or manufacturer upon delivery of the ship or unit.

Standard terms and conditions for the guarantee from Eksfin

Sustainability, environment and anti-corruption (CSR).