Welcome to ECA Watch

Export credit agences provide government-backed loans, guarantees and insurance to corporations working internationally in some of the most volatile, controversial and damaging industries on the planet.

Shrouded in mystery, ECAs provide financial backing for risky projects that might never otherwise get off the ground. They are a major source of national debt in developing countries.

ECA Watch is a network of NGOs from around the world. We come together to campaign for ECA reform - better transparency, accountability, and respect for environmental standards and human rights.

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What's New December 2015

"What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today! Questions?

Email info-at-eca-watch.org

  • Paris's $100bn COP climate finance question
  • Climate activists say big bank climate change finance plans are greenwashing
  • Shady dealings; How Atradius Dutch State Business fails to adequately screen the businesses it supports
  • Dutch ECA faces examination of alleged OECD guidelines violation
  • US farm groups press for progress on agriculture export credit issues at WTO conference
  • India returns empty handed from Nairobi Ministerial with ECA subsidy phase-out
  • US Export-Import Bank Is Revived
  • Zambia in $642m debt fix - Cabinet approves more borrowings to pay Chinese ECAs
  • Gina Rinehart treated 80 bankers to an outback lunch to secure export credit funds for Roy Hill mine
  • South Africa's Transnet secures $2.5bn guarantee from Chinese ECA
  • Bleak Future for Oil Opens Nigeria's Nexim Bank Policy for Re-Examination
  • Russia Will Give Iran $2.2 Billion State Export Credit in 2016
  • Iran, Italy agree on $5b banking credit line
  • Egypt: 5 bln Euros from SACE to support Italian firms and export
  • Allow Indian infrastructure firms to access medium term foreign debt: Centre tells RBI
  • Bolivia’s TKSAT-1 satellite launched with Chinese export credit loan
  • Sovcomflot Group and Sberbank CIB sign $340 million long-term credit facility agreement
  • Paris Club agrees to restructure Cuba’s debt, cancels interest

Paris's $100bn COP climate finance question

(Environmental Finance, London, 1 December 2015) The pledge of $100 billion by 2020 (from developed to developing countries) may be a nice round number for politicians to reference but it is, in fact, an arbitrary figure that is grounded in political, not scientific, analysis. And it is magnitudes below the actual need. So it is little wonder that the recent findings of the OECD study, Climate finance in 2013-14 and the $100 billion goal, were lampooned rather than lauded by many developing countries and civil society. The OECD study asserted that developed countries had mobilised $61.8 billion in 2014 and were on track to provide the $100 billion – both decidedly misleading claims. For the provision of finance to count as climate finance, money must remain in, and benefit, developing countries – governments, ordinary people, especially those who are marginalised, and local economies. Yet the majority of what the OECD study counted as climate finance ultimately benefits developed countries and their investors, banks, and corporations. The OECD counted [amongst other items] export credit financing. Export credits mean loans or loan guarantees, which again require repayment. In addition, export credit agencies are by design meant to benefit home country corporations – they are not driven by developing countries' climate priorities.

https://www.environmental-finance.com/content/analysis/cop-blog-pariss-100bn-que...


Climate activists say big bank climate change finance plans are greenwashing

(The Examiner, 7 December 2015) Recently eleven banks including the World Bank, European Investment Bank and Credit Agricole, announced the launch of ‘Five Voluntary Principles for Mainstreaming Climate Actions Within Financial Institutions’. On Monday December 7, at the UNFCCC COP21 Climate Summit in Paris, France, BankTrack, Friends of the Earth France and Rainforest Action Network jointly issued a statement in response. The potential importance of this is that banks have a great deal of control over what our society chooses to do. How? It's the banks that decide which projects to underwrite, meaning that it doesn't matter how cool and wonderful a solar farm or wind farm is, the banks can block construction by refusing to loan the money necessary to fund the project.

http://www.examiner.com/article/climate-activists-say-big-bank-climate-change-fi...


Shady dealings; How Atradius Dutch State Business fails to adequately screen the businesses it supports

(Both ENDS, Amsterdam, December 2015) In November 2013, Both ENDS published a study on Atradius DSB’s support for complex export transactions that were structured via tax havens, and thus its potential underwriting of aggressive tax avoidance positions that corrode the tax sovereignty of beneficiary countries. In that study it emerged that the possibility of money laundering being part of such complex transactions could also not be excluded. A new report, based on sustained and regular monitoring of transactions supported by Atradius DSB, firmly suggests that the practices previously criticized continue. We again challenge Atradius DSB to introduce effective screening to exclude export transactions that have a high probability of including tax evasion and money laundering from its insurance services.

http://bothends.org/en/Publications/document/152/Shady-dealings-How-Atradius-Dut...


Dutch ECA faces examination of alleged OECD guidelines violation

(Both ENDS, Amsterdam, 17 December 2015) On 8 June 2015 Both ENDS – in conjunction with and on behalf of Associação Fórum Suape Espaço Socioambiental, Conectas Direitos Humanos and Colônia de Pescadores do Município do Cabo de Santo Agostinho – notified the Dutch National Contact Point of a specific instance concerning an alleged violation of the OECD Guidelines for Multinational Enterprises by Atradius Dutch State Business (ADSB) relating to the provision of export credit insurance on behalf of and for the account of the Dutch State with respect to dredging projects by the Dutch company Van Oord for the Suape Industrial Port Complex in Suape, Pernambuco, Brazil. Both ENDS’ notification states ‘In violation of its own corporate social responsibility, ADSB failed to ensure effective monitoring of the projects’ impacts. This behaviour, among other factors, resulted in a failure to consult with the affected people and communities, a loss of traditional ways of life, as well as severe damage to biodiversity and ecosystems." Local people were forcefully resettled without appropriate compensation, and several families now live in deep poverty due to the loss of their traditional livelihoods.

http://www.oecdguidelines.nl/latest/news/2015/12/17/notification-both-ends-forum...


US farm groups press for progress on agriculture export credit issues at WTO conference

(World Grain, Kansas City, 15 December 2015) In a letter to the U.S. Department of Agriculture (USDA) and the Office of the U.S. Trade Representative, the American Soybean Association (ASA) led a coalition of agricultural organizations in urging the U.S. Agriculture Secretary to work toward positive outcomes for agriculture in this week’s WTO Ministerial in Nairobi. With regard to export competition, the letter strongly supports U.S. efforts to eliminate export subsidies (including by the E.U. and Canada), reform export credit programs, and eliminate state trading enterprises and single desk trading. At the same time they cautioned against weakening such rules in developing nations, specifically noting subsidies by Brazil and other emerging nations for transportation, handling and processing costs for exported commodities. The ASA has subsequently expressed its disappointment with the decision to allow the continued use of export subsidies by developing nations.

http://www.world-grain.com/articles/news_home/World_Grain_News/2015/12/ASA_farm_...


India returns empty handed from Nairobi Ministerial with ECA subsidy phase-out

(Hindu Business Line, NewDelhi, 20 December 2015) The World Trade Organisation’s Ministerial in Nairobi failed to deliver anything concrete for India and other developing countries in the areas of food security and farmer protection. Worse, it has saddled them with the burden of doing away with all export subsidies in the next eight years, and all but ended the development framework of the Doha Round within which negotiations have been taking place. There was no breakthrough in areas of food, farmer security; as export subsidies are to be phased out by 2023.

http://www.thehindubusinessline.com/economy/india-returns-empty-handed-from-nair...


US Export-Import Bank Is Revived

(Wall Street Journal, Washington, 9 December 2015) Legislation signed by President Barack Obama on Friday resurrected the U.S. Export-Import Bank and ended a five-month lapse that revealed far stronger bipartisan backing for the agency than the pitched battle to shut it down suggested. The outcome now gives the bank a firm footing until September 2019, but the brawl over its existence this year left both economic and political scars. The New York Times however has reported that: Yet an obstacle remains: With three empty seats on its five-member board, the bank lacks a quorum. Until Mr. Obama nominates members, and the Republican-controlled Senate confirms them, Ex-Im Bank can only approve small export deals, not the big orders for aircraft, satellites and major manufacturing equipment the bank is best known for — leaving the likes of Boeing, General Electric and Caterpillar in limbo.

http://www.wsj.com/articles/export-import-bank-set-for-renewal-1449265587


Zambia in $642m debt fix - Cabinet approves more borrowings to pay Chinese ECAs

(Post News, Zambia, 18 December 2015) The Zambian government is under pressure to borrow over US$642 million to pay Chinese lenders as overdue down payment for loans worth US$3 billion. According to a Cabinet memorandum, Zambia has contracted US$3,012,466,199 in concessional and non-concessional export credit from China, but the government has failed to pay the required down payment of US$642,993,572 on all 12 loans due to fiscal constraints.

http://www.postzambia.com/news.php?id=13979


Gina Rinehart treated 80 bankers to an outback lunch to secure export credit funds for Roy Hill mine

(Business Insider Australia, Sydney, 4 December 2015) Yesterday Gina Rinehart’s Roy Hill mine hit yet another snag. For a second time the first shipment of iron ore from Roy Hill was delayed following safety concerns. At a Sydney Mining Club function last night — held by Rinehart with the intention of celebrating the first shipment — Rinehart’s chief financial officer, Garry Korte, revealed how the mining magnate secured the $US10 billion funding package needed to keep the project afloat. According to Korte, Rinehart “personally” hosted a lunch in the outback, inviting around 80 bankers from around the world. “She talked to each guest individually,” he said, “which meant we secured virtually on the spot, billions of dollars of commercial bank support.” Her “personal touch” with the export credit agencies saved the project, said Korte. It is expected that this was in reference to the $7.2 billion in funding secured in March 2014 from a global consortium of banks including Australia’s majors and a group of national export-import finance banks. Korte also said Rinheart hosted a “famous” dinner with the “conservative” export credit agencies, who underpinned the finance, without which the project might not have happened. Korte also noted that: “The head of the lead export credit agency on the debt deal danced with the chairman, Mrs Rinehart, and it seemed to help his enthusiasm for the project substantially … quite unexpectedly, a few minutes later he announced at the dinner he was going to bring forward his board meeting to deal with our financing”.

http://www.businessinsider.com.au/gina-rinehart-treated-80-bankers-to-an-outback...


South Africa's Transnet secures $2.5bn guarantee from Chinese ECA

(The Citizen, Johanesburg, 3 December 2015) Transnet and China Export Credit Insurance Corporation (Sinosure) on Wednesday agreed to a $2,5 billion funding guarantee in a ceremony attended by South African President Jacob Zuma and his Chinese counterpart Xi Jinping, who is on a State visit to South Africa. The news came in a flurry of deal-making on the eve of the first Forum for China-Africa Co-operation (Focac) summit in Africa, being held in Johannesburg this week. South Africa and China announced a number of other deals worth a total US$6 billion on Wednesday.Transnet announced that it would use the guarantee to finance procurement of mechanical, electrical products and equipment from Chinese enterprises. It would also cover funding for operation, maintenance and other services from Chinese enterprises in South Africa. The credit terms are not intended to exceed 15 years, in line with Transnet’s stated objective of matching its liabilities with the life of assets.

http://www.citizen.co.za/892499/transnet-secures-25bn-guarantee-from-chinese-age...


Bleak Future for Oil Opens Nigeria's Nexim Bank Policy for Re-Examination

(This Day Live, Lagos, 19 December 2015) Given that oil remains the basis upon which Nigeria's national budget is benchmarked, the downturn opens the country up to harsh vulnerabilities. Since this reality was fairly foreseen and foretold by development analysts it rightly ought not to have met Nigeria unprepared, right? To be fair to government, specific proactive steps had long been taken by governments including mandating a development finance agency with the responsibility of designing and driving the vision to promote and grow the non-oil sectors of the economy. That obligation fell on the laps of the nation’s flagship development finance agency, the Nigerian Export-Import Bank, NEXIM.

http://www.thisdaylive.com/articles/bleak-future-for-oil-opens-nexim-bank-s-poli...


Russia Will Give Iran $2.2 Billion State Export Credit in 2016

(Sputnik News, Tehran, 23 December 2015) Russia plans to provide Iran with $2.2 billion in state export credit in 2016 as part of a $5 billion loan plan, Russia's First Deputy Prime Minister Igor Shuvalov said Thursday.

http://sputniknews.com/world/20151223/1032208835/russia-iran-billion-state-expor...


Iran, Italy agree on $5b banking credit line

(Tehran Times, Tehran, 1 December 2015) Iran and Italy have agreed to open a $5-billion credit line, in a bid to pave the way for optimal banking and economic ties between the two countries once sanctions against the Islamic Republic are lifted. The credit line is projected to take effect one day after the implementation of the Joint Comprehensive Plan of Action (JCPA), a document drafted and signed by Iran and world major powers as a solution to Iran’s nuclear program.

http://www.tehrantimes.com/index_View.asp?code=251279


Egypt: 5 bln Euros from SACE to support Italian firms and export

(Ansamed, Rome, 11 December 2015) The Italian export credit agency SACE has announced five billion euros in operations being assessed to support Italian export and firms in Egypt, one of the most strategic markets for the country in the Mediterranean. SACE has in Egypt a portfolio of insured transactions worth 1.6 billion euros, mostly in the energy, petrochemicals and infrastructure and constructions sectors, including both large Italian companies and many SMES.

http://www.ansamed.info/ansamed/en/news/sections/economics/2015/12/11/egypt-5-bl...


Allow Indian infrastructure firms to access medium term foreign debt: Centre tells RBI

(India Times, New Delhi, 27 December 2015) The government has asked the Reserve Bank of India to reconsider its external commercial borrowing (ECB) norms to allow foreign currency debt to infrastructure sector for medium term also. Sources said Transport and Highways Secretary Chhibber has written that "many export credit agencies are required to follow OECD arrangements wherein a member is not permitted to extend export credit beyond a period of 10 years for all categories (except non nuclear power plants) for a category II country such as India, whereas the revised ECB framework allow Indian infrastructure companies to access long term foreign currency borrowings with a minimum average maturity of 10 years (under Track II)".

http://articles.economictimes.indiatimes.com/2015-12-27/news/69334850_1_track-ii...


Bolivia’s TKSAT-1 satellite launched with Chinese export credit loan

(Space News, Paris, 28 December 2015) The Bolivian Space Agency (ABE) said its Tupac Katari (TKSAT-1) telecommunications satellite is expected to generate $2 million in monthly revenue in 2016 and to reach a fill rate in the coming years that could justify a second satellite. ABE did not disclose the specific terms of its China Development Bank loan, but most export-credit agencies advance funds at low interest rates, with repayming starting well after the satellite is operational in orbit.

http://spacenews.com/bolivias-tksat-1-expected-to-generate-500-million/#sthash.B...


Sovcomflot Group and Sberbank CIB sign $340 million long-term credit facility agreement

(Your Oil & Gas News, Aberdeen, 22 December 2015) Sovcomflot Group and Sberbank CIB  have signed a 14-year $340 million credit facility agreement to finance the construction of three Arctic shuttle tankers for the Novy Port project  (project operator: Gazprom Neft). Commenting on the transaction, Nikolay Kolesnikov, Chief Financial Officer of Sovcomflot, said: “With this new financing Sovcomflot will have raised a total of over USD 900 million of long-term debt finance from commercial banks and export credit agencies in the course of 2015.”

http://www.youroilandgasnews.com/sovcomflot+group+and+sberbank+cib+sign+$340+mil...


Paris Club agrees to restructure Cuba’s debt, cancels interest

(Post News, Zambia, 15 December 2015) According to the Paris Club, representatives of the Group of Creditors of Cuba and of the Government of the Republic of Cuba met from December 10-12 and on Saturday came up with an arrangement to clear US$2.6 billion of debt in arrears due to the Group of Creditors of Cuba over an 18-year period. After striking the agreement, Paris Club said the Group of Creditors of Cuba’s export credit agencies that wish to do so will resume their export credit activities. The Group of Creditors of Cuba includes Australia, Austria, Belgium, Canada, Denmark, Finland, France, Italy, Japan, the Netherlands, Spain, Sweden, Switzerland and the United Kingdom.

http://www.postzambia.com/news.php?id=13908


What's New November 2015

"What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today! Questions?

Email info-at-eca-watch.org

  • OECD deal to curb coal financing has more holes than a sieve
  • US bill with Ex-Im extension attached extended to 4 December 2015
  • BPIFrance issues its first export credit
  • Envoys cry foul as US seeks to protect its farm export credits
  • Petrobras secures US$1.84bn in export credit from ECAs
  • Sinosure executive dies days after corruption probe started
  • Ukraine sets up export credit agency
  • Tata Group Gets $500 Million of Canada Export Credit Financing

OECD deal to curb coal financing has more holes than a sieve

(Friends of the Earth, Paris, 18 November 2015) After nearly two years of discussions, the Organisation of Economic Cooperation and Development member countries have finally reached an agreement on reducing their support to some coal plants through their export credit agencies. The agreement comes a day after the G20 had reiterated its willingness to reduce inefficient fossil fuel subsidies and only 12 days before the start of COP21, the climate change conference. The agreement, which only covers some OECD-member export credit agency financing for coal power plants and leaves out financing for mining, transport and related coal infrastructure, won’t do what is needed to solve the climate crisis. A recent research report notes that G20 members provide $452bn a year in fossil fuel production subsidies – despite pledges to remove them and take action to limit climate change.

http://www.foe.org/news/news-releases/2015-11-deal-to-curb-coal-financing-has-mo...


US bill with Ex-Im extension attached extended to 4 December 2015

(CCJ, Washington, 23 November 2015) President Barack Obama signed into law Friday, Nov. 20, a bill to extend highway funding, which includes Ex-Im renewal, for two weeks. A dozen Senators and 28 Representatives have been delegated to a bicameral conference committee tasked with producing a multi-year bill both chambers can agree to. The US House of Representatives Nov. 5th voted 363-64 to approve a multiyear transportation funding bill that would also renew the Export-Import Bank, setting up negotiations with the Senate, which had already passed its own highway funding bill. The two chambers must now resolve their differences. House Republicans had proposed 10 amendments with respect to the Ex-Im provisions of the Bill.

http://www.ccjdigital.com/president-signs-bill-to-extend-highway-funding-through...


BPIFrance issues its first export credit

(Global Trade Review, Paris 24 November 2015) France’s Banque Publique d’Investissement (Bpifrance) has issued its first export credit facility to bread equipment manufacturer Mecatherm, for the export of two bread production lines to Mozambique. Created in 2013, Bpifrance offers capital and innovation investment, guarantees and support for small businesses’ internationalisation. It is in the process of taking over Coface’s ECA offering to gather all public export support under one umbrella, with completion expected by mid-2016.

http://www.gtreview.com/news/europe/bpifrance-issues-first-export-credit/


Envoys cry foul as US seeks to protect its farm export credits

(Livemint, Delhi, 2 November 2015) The US has demanded ‘safe harbor’ protection for its controversial farm export credit programme from the disciplines underpinning the World Trade Organization’s agreement on subsidies and countervailing measures despite denying such a flexibility to India and other developing countries for public stockholding programmes for food security last year. In October, Washington’s trade envoy Ambassador Michael Punke sought the ‘safe harbor’ protection for export credits for its farm products from legal challenges arising from the disciplines in the WTO’s agreement on Subsidies and Countervailing Measures (SCM), which also apply to OECD export credit agencies. The EU has joined forces with Brazil and five other farm exporting countries to propose tighter WTO rules on export subsidies and similar measures, one month ahead of the global trade body’s ministerial conference in Nairobi, Kenya.

http://www.livemint.com/Politics/t1MuhoVSvG8bR7WlPxxe2L/Envoys-cry-foul-as-US-se...


Petrobras secures US$1.84bn in export credit from ECAs

(Global Trade Review, London, 18 November 2015) Brazilian national oil company Petrobras has concluded negotiations with international export credit agencies (ECAs) for a total of US$1.84bn. According to a company statement, this financing will contribute towards its fundraising efforts for 2016. The negotiations involve Italian ECA Sace, UK Export Finance (UKEF), Nippon Export and Investment Insurance (NEXI) from Japan and Austria’s Oesterreichische Kontrollbank (OeKB).

http://www.gtreview.com/news/americas/petrobras-us1-84bn-export-credit-ecas-sace...


Sinosure executive dies days after corruption probe started

(Caixin, Beijing, 27 November 2015) The chief auditor of state-owned Chinese ECA Sinosure was found dead in his office five days after he was put under investigation by the Communist Party's graft-fighting agency, a person with knowledge of the matter says. Agence France Press in Beijing also reports that Dai Chunning, a deputy general manager at Sinosure, “is suspected of serious discipline violations and currently under investigation”, the Commission for Discipline Inspection, a branch of the ruling Communist Party, said on its website.

http://english.caixin.com/2015-11-27/100879326.html


Ukraine sets up export credit agency

(Ukranian Journal, Kiev, 3 November 2011) The Ukrainian government is planning to create an export-credit agency to support national exports. The initiative is stipulated in draft law No. 9373 on the state financial support of exports, which was registered in Parliament on November 1. "The creation is foreseen of a state-run financial enterprise – a export-credit agency created in the form of a public joint-stock company by the state in the person of the Ukrainian cabinet - to secure Ukrainian exporters from commercial and non-commercial risks and to provide guarantees of the fulfillment of liabilities under foreign economic agreements by foreign buyers," reads the bill.
 
http://www.ukrainianjournal.com/index.php?w=article&amp%3Bid=13451


Tata Group Gets $500 Million of Canada Export Credit Financing

(Bloomberg, Ottawa, 4 November 2015) Tata Group, the Indian owner of assets including Jaguar Land Rover and the Tetley Tea brand, will receive as much as $500 million a year in financing from Canada’s government-owned export development bank. EDC will underwrite loans to the Tata Sons unit to support orders from local suppliers, the Ottawa-based agency and Mumbai-based company said in a joint statement Wednesday. Tata has invested C$1.3 billion ($1 billion) in its Canadian operations over five years for products such as steel, chemicals and consulting services. The Tata financing follows a $500 million arrangement in April 2014 for Reliance Industries Ltd., another Indian company. Canada is seeking to broaden its exports beyond the U.S., which currently buys about three quarters of its northern neighbor’s foreign shipments.

http://www.bloomberg.com/news/articles/2015-11-04/tata-group-gets-500-million-of...


What's New October 2015

"What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today! Questions?

Email info-at-eca-watch.org

  • House Votes Overwhelmingly to Reopen the Ex-Im Bank
  • U.S. and Japan to announce deal curbing ECA coal financing
  • GasLog Ltd. Completes $1.3 Billion Financing Facility
  • Why Japan's Climate Action Deserves a Failing Grade
  • UKEF lending Roman Abramovich's company £45m
  • Corporate Welfare for the Kochs [via ECAs] - New York Times
  • Russia's Gazprombank chairman says Yamal LNG financing [including ECAs] is in final stages
  • Italy’s SACE export credit agency losses €3 bln due to sanctions vs Russia
  • Canada’s export credit agency sets up Africa-focused Joburg office
  • Sullivan & Worcester’s annual export credit agency finance update
  • Finnvera Group’s Interim Report for January-September 2015
  • Russia to provide Cuba with 1.2-bln-euro export credit for construction of power plants
  • SACE agrees to over 1 billion Euro line of credit for UAE

House Votes Overwhelmingly to Reopen the Ex-Im Bank

(New York Times, Washington, 27 November 2015) The House acted with rare bipartisanship on Tuesday to approve legislation that would reopen the federal Export-Import Bank, after a debate that underscored the split between the party’s traditional pro-business members and ascendant free-market conservatives who are suspicious of big corporations. The lopsided final vote of 313 to 118 belied that split, as a majority of Republicans allied with all but one Democrat to reauthorize the 81-year-old bank agency, but only once the bill’s passage was assured... But the bank’s future may not be resolved until December. The House bill now goes to the Senate, which approved a similar bank reauthorization measure as part of an unrelated transportation bill.

http://www.nytimes.com/2015/10/28/us/politics/house-votes-overwhelmingly-to-reop...


U.S. and Japan to announce deal curbing ECA coal financing

(ClimateWire, Washington, 27 October 2015) The Obama administration has crafted a deal with Japan to restrict financing for overseas coal projects, several sources told ClimateWire. The agreement is aimed at influencing other members of the Organisation for Economic Co-operation and Development (OECD), which will meet next month in Paris for a contentious decision over setting common rules to phase out coal financing for export credit agencies. Yet other OECD countries have not yet signed onto the deal, which could curtail 80 percent of coal projects in the export credit agency pipeline. Sources say the talks are in a sensitive phase and the administration wants to bring in other countries before making an announcement.

http://www.eenews.net/stories/1060026972


GasLog Ltd. Completes $1.3 Billion Financing Facility


(CS Solutions Blog, 26 October 2015) International owner, operator and manager of LNG carriers, GasLog Ltd. has completed an export credit agency-backed debt financing of USD 1.3 billion with 14 banks for its newbuilding program. The so called Newbuild Facility will include eight vessels, which will be delivered between 2016 and 2019. Seven of the eight vessels have long-term contracts of between 7 and 10 years and will be chartered to a subsidiary of BG Group plc following delivery... . Korea Eximbank and Ksure either directly lent or provided cover for over 60% of the facility.
http://ccsolutionsblog.blogspot.ca/


Why Japan's Climate Action Deserves a Failing Grade

(Natural Resources Defense Council, New York, 22 October 2015) We have given a "climate grade" to key countries for their climate actions and new targets in the lead-in to the Paris climate agreement. Nobody is receiving top marks - an "A+" - but some countries are receiving failing grades. We gave Japan a failing grade - a "D" - for its climate actions because it is the biggest financer of overseas coal projects, its climate target is too weak, and it is a bit fuzzy on some of its methodologies. Reason #1: Japan is the largest provider of public finance for overseas coal projects. Japan had the largest amount of coal financing of any country by far, more than double any other OECD country's financing, with over $20 billion of financing from 2007 to 2014, according to data from NRDC, Oil Change International and WWF.

http://switchboard.nrdc.org/blogs/jschmidt/why_japans_climate_action_dese.html


UKEF lending Roman Abramovich's company £45m

(Management Today, London, 30 September 2015) Evraz, the steel and mining giant that is 30.8% owned by the Russian oligarch and Chelsea FC owner Roman Abramovich, is due to receive a £45m loan from Britain's export credit agency. The loan is part of the UK Export Finance 'direct lending' scheme launched last year by the Government in a bid to meet its target of doubling exports by 2020. The scheme lends money to overseas importers of British goods and services in the hope that it will create jobs in the UK. According to the Times, Evraz will use some of the cash to pay Primetals Technologies (a joint venture between Siemens and Mitshubishi Heavy Industries) to upgrade its steel factory in northern Canada.

http://www.managementtoday.co.uk/news/1366509/the-british-taxpayer-lending-roman...


Corporate Welfare for the Kochs [via ECAs] - New York Times

(New York Times, New York, 10 October 2015) In 2013 the people who dreamed up Big River Steel in Arkansas wanted government aid that would help make the project successful — the kind of aid that groups like Heritage Action and Americans for Prosperity, both generously supported by the right-wing billionaires Charles and David Koch, derisively describe as “corporate welfare.” The Arkansas Legislature was considering a $125 million bond issue to help pay for the mill’s construction, as well as over $200 million in tax credits for buying and installing recycling equipment... The deal also depended on an $800 million 10-year loan from a German bank, KfW IPEX-Bank which in turn, was contingent on credit insurance provided by Euler Hermes, an ECA like the Export-Import Bank of the United States. In America, of course, Koch-funded groups have led the battle to defund the Ex-Im Bank. The Germans have no such ideological hang-ups, because Big River Steel would be buying its steelmaking equipment from a German company. In February 2013, Koch Minerals, part of Koch Industries took a 40% equity stake in Big River Steel, making them the project’s biggest investor. The Arkansas incentive package ultimately passed, the German government-insured loan was completed and the plant should be up and running next year.

http://www.nytimes.com/2015/10/11/opinion/sunday/corporate-welfare-for-the-kochs...


Russia's Gazprombank chairman says Yamal LNG financing [including ECAs] is in final stages

(Reuters, Moscow, 29 October 2015) A deal to raise financing for the Novatek-led Yamal LNG project in Russia is in its final stages, the chairman of the management board at Gazprombank, Andrey Akimov, told Reuters. Financing for the $27 billion project is seen as a test for Russia in securing foreign loans, at a time when the country's access to capital markets is limited by Western sanctions over its involvement in the conflict in eastern Ukraine. In a rare interview, Akimov said Chinese lenders are set to provide $12 billion, Russian banks $4 billion, and export credit agencies are expected to put up another $4 billion. Novatek has a 50.1 percent stake in what will be only Russia's second LNG plant. France's Total and China's CNPC hold 20 percent each. Last month, Novatek agreed to sell a 9.9 percent stake to the China Silk Road Fund.

http://www.thefiscaltimes.com/latestnews/2015/10/29/Exclusive-Russias-Gazpromban...


Italy’s SACE export credit agency losses €3 bln due to sanctions vs Russia

(Tass, Verona, 22 October 2015) The Italian export credit agency SACE has suffered losses up to €3 billion due to sanctions against Russia, head of the agency Giovanni Castallaneta said. "We have already suffered damage for 2014-2015 for the sum of €2.5-3 billion," Castellaneta told the Eurasian Economic Forum in Verona. Italian exports to Russia and neighboring countries decreased by $6.5 billion.

http://tass.ru/en/economy/831008


Canada’s export credit agency sets up Africa-focused Joburg office

(Creamer Media, Johannesburg, 29 October 2015) Canada’s official trade finance agency, Export Development Canada (EDC), has formally established permanent offices in Johannesburg, from where it aims to facilitate $10-billion-worth of business between sub-Saharan African and Canadian companies over the coming five years. The export credit agency has already provided $7.4-billion in financial support to African firms purchasing goods and services from Canadian companies, including participation in a R6.99-billion rand-denominated loan facility for Bombardier Transportation, which has been awarded a contract to supply 240 electric locomotives to Transnet Freight Rail.

http://www.miningweekly.com/article/canadas-export-credit-agency-sets-up-africa-...


Sullivan & Worcester’s annual export credit agency finance update

(TFX News, London, 16 October 2015) Sullivan & Worcester's Mark Norris and UK Export Finance's Margaret Eyres present S&W's Export Credit Agency Annual Update breakfast briefing. Norris analyses the general trends affecting the ECA market, while Eyres provides an overview of UK Export Finance's new direct lending scheme. Watch the 1hr 9min full video at this link.
http://www.txfnews.com/News/Article/5311/Sullivan-Worcesters-annual-export-credi...


Finnvera Group’s Interim Report for January-September 2015

(Global News Wire, Copenhagen, 29 October 2015) During the period under review, the volume of export credit guarantee offers given by Finnvera was 52 per cent greater than in the corresponding period in 2014. As concerns financing offers for export credits, the figure was over two times greater. The volume of loans and guarantees granted to SMEs and enterprises larger than the SME definition applied by the EU was 31 per cent greater than the year before.

http://globenewswire.com/news-release/2015/10/29/781320/0/en/The-Finnvera-Group-...


Russia to provide Cuba with 1.2-bln-euro export credit for construction of power plants

(Interax, Moscow, 20 October 2015) The Russian government has approved the allocation to the Cuban authorities a state export credit for up to 1.2 billion euro for financing the construction of four generating units for thermal power plants (TPP) on the island: one 200-megawatt power unit at Maximo Gomez and three 200-MW units at Eastern Havana. The project will be implemented by Russia's Inter RAO Export LLC, a subsidiary of Inter RAO UES and Cuba's Energoimport, part of Union Electrica. The terms of the project will be spelled out in the contract on upgrading the capacity of the power stations. Under the terms of the agreement, Cuba will exempt Inter RAO and contractors from payment of profit taxes and customs fees, and their employees will be exempt from individual income taxes.

http://rbth.com/news/2015/10/19/russia_approves_agreement_to_build_800_mw_of_pow...


SACE agrees to over 1 billion Euro line of credit for UAE

(ANSAmed, Rome, 20 October 2015) New export opportunities in the United Arab Emirates for Italian companies after the agreements signed by SACE with the Dubai Aviation City Corporation (DACC) and Abu Dhabi Ports, on the occasion of the Emirati National Day at the EXPO. The accord with DACC, said SACE, is intended to support export and investments by Italian companies involved in the Dubai South project, an area of 145 square kilometers which will host the new international Al Maktoum airport and EXPO Dubai 2020. After the accord, SACE opened a one billion Euro line of credit for DACC for the purchase of goods and services by Italian companies.

http://www.ansamed.info/ansamed/en/news/sections/economics/2015/10/20/enterprise...


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