Annual Report 2023: Robust Growth in Export Transactions and High Value Recovery

49 billion NOK (€4.3 billion) in new guarantees, significant share of green transactions, substantial value recovery, and a more diversified portfolio including large and small enterprises.

Record-breaking growth

Eksfin’s strategy through to 2025 prioritises offshore wind, green maritime, other green industries, and small and medium-sized enterprises (SMEs). Eksfin has seen strong growth across all these focus areas.

In 2023, Eksfin issued a record-high 49.3 billion NOK (€4.3 billion) in new guarantees and 10.3 billion NOK (€901 million) in loan disbursements, compared to 8.8 billion NOK (€770 million) and 3.6 billion NOK (€315 million), respectively, in 2022. The number of financings and clients has steadily increased since Eksfin’s establishment in 2021.

Increased activity in renewable energy and defence

Approximately half (46 percent) of Eksfin’s new transactions in 2023 were in green industries, totalling 22.6 billion NOK (€2 million). In just a few years, the renewable energy sector has become the largest industry in Eksfin’s overall guarantee portfolio, comprising one-third of it.

The offshore wind industry is particularly important, accounting for 32 percent of new guarantee volume. While awaiting offshore wind development in Norway, the industry primarily serves offshore wind farms in Europe and Asia. Meanwhile, the portfolio share in oil and gas has decreased to 24 percent and is expected to decline further.

The remaining portfolio includes 26 percent in other industries and defence, 12 percent in cruise ships, ferries, and shipping, and 4 percent in aquaculture and seafood.

The shifting industry composition within Eksfin aligns with its goals of increasing mainland exports, driving green transition, and achieving long-term financial balance.

The largest transaction of the year was buyer financing for Poland to purchase missile systems from Kongsberg Defence & Aerospace.

West and east Norway utilise Eksfin the most

Viken, Oslo, and Rogaland counties account for much of the exports from the defence and offshore wind industries. Eksfin’s financing therefore benefited these counties the most in 2023. Additionally, the shipbuilding industry in Møre og Romsdal and Vestland frequently uses Eksfin, largely related to ships, equipment, and services for international offshore wind development. Other clients for the shipyards include international freight shipping companies, ferry operators, and aquaculture and fishing companies.

Nationwide demand for Eksfin’s new working capital product

A new working capital financing offer was launched in autumn 2023 and quickly adopted nationwide. The working capital guarantee contributed to a 23 percent increase in financings for SMEs. Businesses receive the guarantee from Eksfin through their banks. By March 2024, 15 banks had signed framework agreements with Eksfin to offer the working capital guarantee to SMEs, drawing 800 million NOK (€70 million). According to the banks, Eksfin is becoming increasingly relevant for SMEs, offering financing that suits businesses throughout the export value chain.

Sustained demand from emerging industries

Eksfin expects continued demand for financing and risk mitigation from green industries such as hydrogen, carbon capture and storage, green maritime, offshore wind, and batteries in 2024. Demand is expected to be high from SMEs across the export value chain – both exporters and their sub-suppliers. A key driver is the political, regulatory, and financial uncertainty in major export markets.

In uncertain times, Norwegian companies and banks need a proactive, adaptable, and solid financial partner – and it is our ambition that they find that in Eksfin, says CEO Tone Lunde Bakker.

High value recovery in the offshore portfolio

In previous years, large claims payments led to the need for more liquidity in Eksfin’s general guarantee scheme. In 2020, Eksfin was authorised to take out a state loan (through a credit facility) for additional loss payments. The draw peaked at 14.3 billion NOK (€1.25 billion) in 2022.

However, in 2023 Eksfin repaid the draw faster than expected, with an outstanding draw of 3 billion NOK (€262 million) at year-end. Eksfin has made further repayments in 2024 and aims for zero draw. Successful restructurings and value recoveries have contributed to this while strengthening Eksfin’s capacity to participate in new export transactions.

Financing at low cost, with high societal impact

In addition to a solid increase in financings and revenues, combined with an increase in limits to 195 billion NOK (€17 billion), Lunde Bakker can also highlight a 60 million NOK (€5.25 million) savings in administrative costs over two and a half years.

Our 125 employees maintain a high activity level to make our offering known, accessible, and relevant. Eksfin’s results are created by competent and dedicated staff, in good collaboration with customers, banks, other actors, and an engaged board. We are proud to present the 2023 annual report to the Ministry of Trade, Industry, and Fisheries, concludes Tone Lunde Bakker.

*Amounts stated in Euros are based on DNB’s exchange rate for EUR/NOK for 2023.