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.

Featured publications and stories

What's New September 2022

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

See all "What's New!" updates since 2005 here.

  • France restricts oil & gas finance to meet climate commitments, piling pressure on Germany USA Canada to follow suit
  • Sweden restricts ECA fossil fuel finance to deliver on climate commitment
  • Berne Union report warns of dwindling risk appetite over Ukraine related claims
  • Ukraine seeks $400 billion for foreign investment & export credit
  • U.S. EXIM Bank  Ukraine pledge cooperation on financing reconstruction
  • EXIM strategy: Climate change,  China, OECD ECA backsliding challenge competitiveness
  • Sri Lanka’s Chinese debt making international headlines
  • China’s no new coal power overseas pledge one year on
  • EU challenges China’s Belt and Road with €300bn Global Gateway
  • Iranian & Russian ECAs ink agreement to facilitate trade
  • India has $5 bn new export opportunity in Russia
  • US exports face empty container pile-up as supply chains recover
  • The role of ECAs in financing the transition to net zero
  • TFG partners with UKEF and DIT to create a trade and export finance guide
  • Chilean firm to receive Korean ECA $100 million fund for stable Australian lithium supply to South Korean firms

France restricts oil & gas finance to meet climate commitments, piling pressure on Germany, USA, Canada to follow suit

(Oil Change International, Washington, 26 September 2022) the French Government has published a new policy that restricts public finance for fossil fuels from the French export credit agency, BPIFrance. This policy is meant to implement France’s commitment to end international public finance for fossil fuels by the end of 2022, which it made at the UN Climate Conference in Glasgow last year along with 38 other countries and financial institutions (The Glasgow Statement). The French Development Agency (AFD), which is also subject to the Glasgow commitment, had already adopted a near-complete fossil fuel exclusion in 2019. The policy – which will be enacted in law through the French Government’s budget – is a landmark win for French campaigners who have been calling for an end to French export finance for fossil fuel projects for years. In addition, it builds pressure on fellow Glasgow Statement signatories to keep their promise and announce their Glasgow-compliant policies by the upcoming COP27 UN Climate Conference in Egypt. So far, the United Kingdom, Denmark, Belgium, Sweden and now France have published policies to implement their Glasgow commitment. The new policy implements a commitment made at last year’s UN Climate Conference to end almost all French government-backed financing for international fossil fuel projects, responsible for €9.3bn in public finance for oil and gas between 2009 and 2019

https://priceofoil.org/2022/09/26/france-restricts-oil-and-gas-finance-to-meet-c...


Sweden restricts ECA fossil fuel finance to deliver on climate commitment

(Oil Change International, Washington, 20 September 2022) At the COP26 United Nations Climate Conference in Glasgow, 39 countries and institutions signed up to the Glasgow Statement, committing themselves to ending “new direct public support for the international unabated fossil fuel energy sector by the end of 2022, except in limited and clearly defined circumstances that are consistent with a 1.5°C warming limit and the goals of the Paris Agreement.” The initiative has the potential to shift $39 billion a year out of fossil fuel projects and into clean energy if countries keep their promises. As the deadline for implementing the Statement looms, the Swedish export credit agencies, SEK and EKN, have released an updated policy. A previously-released policy aligned Swedfund – the Swedish development finance institution – with the Glasgow Statement.

https://priceofoil.org/2022/09/20/sweden-public-finance-policy/


Berne Union report warns of dwindling risk appetite over Ukraine related claims

(Global Trade Review, London, 31 August 2022) Rising geopolitical risk is driving up demand for export credit insurance, says a new Berne Union study, which warns that the market is bracing for a wave of Ukraine-related claims. According to the association’s latest ‘Business Confidence Index’ report, providers of short, as well as medium and long-term credit and political risk insurance, have seen “strong” levels of demand this year. The quarterly analysis, based on a survey of the Berne Union’s more than 80 members – including export credit agencies, private credit insurers and multilateral financial institutions – reveals that requests for short-term cover have been especially robust. “Payment delays directly caused by the war are materialising for some insurers and there is a general expectation that liquidity constraints and higher interest rates will lead to increasing insolvencies in the third quarter,” the report says. In a world where roughly 15% of trade is protected by insurance, eyes are often on the trade credit insurance stage.

https://www.gtreview.com/news/global/credit-insurers-warn-of-dwindling-risk-appe...


Ukraine seeks $400 billion for foreign investment & export credit

(Pipa News, Pakistan,7 September 2022) Ukraine has begun attracting foreign investment of up to $400 billion in projects across the economy, even as it faces a protracted war with Russia and a slump in production. The Kiev government has identified hundreds of technology, agribusiness, clean energy, defense, metallurgy and natural resources initiatives that it hopes will attract international investors, backed by loan guarantees and insurance from Western donors. Ukrainian officials recognize that Western investors need protection. They want access to World Bank war risk insurance products and Western export credit institutions to provide guarantees.

https://pipanews.com/ukraine-launches-400-billion-for-foreign-investment-financi...


U.S. EXIM Bank, Ukraine pledge cooperation on financing, reconstruction

(Reuters, Washington, 30 August 2022) The head of the EXIM and a senior Ukrainian development minister have pledged to keep working on U.S. financing opportunities to support Ukraine's energy security and infrastructure, the export credit agency said. The meeting between EXIM Chair Reta Jo Lewis and Ukrainian Minister for Communities and Territories Development Oleksiy Chernyshov came exactly a year after EXIM and Ukraine signed a memorandum of understanding to identify $3 billion in EXIM-supported export financing projects for Ukraine, including road, rail and energy infrastructure. In March, less than a month after Russia's invasion started, EXIM and its fellow export credit agencies in Britain and Canada withdrew all new export credit support for Russia and Belarus.

https://www.reuters.com/world/europe/us-exim-bank-ukraine-pledge-cooperation-fin...


EXIM strategy: Climate change, China, OECD ECA backsliding challenge competitiveness

TFX, London, 14 September 2022) The most recent edition of US EXIM’s Competitiveness Report makes plain that although US EXIM medium- and long-term support has grown since obtaining a quorum in 2019, much more must be done to advance America’s export competitiveness in an era of volatility and crowded competition. Released at the end of June, there were few surprises in the focus of the 55th edition of US EXIM’s Competitiveness Report – in short, climate change and US exporters facing increased competition from Chinese companies backed by historic levels of their government’s financing. But if the focus was no surprise, the wider scope of the challenges facing US EXIM was. The key point is that China is not US EXIM’s only problem. By not complying with OECD rules China has induced other countries to follow suit, skewing the competitive landscape. Indeed, many European ECAs have extended and developed their pandemic flexibility, offering new and innovative support for domestic and foreign exporters that don’t necessarily meet the terms of the OECD arrangement. As such US EXIM faces considerable challenges facilitating a level playing field.

https://www.txfnews.com/articles/7440/ECA-strategy-Can-US-EXIM-raise-its-global-...


Sri Lanka’s Chinese debt making international headlines

(The Island, Colombo, 9 September 2022) Sri Lanka’s debt to China is making headlines in international and local media again. Media reports partly blame China and its lending practices, for Sri Lanka’s debt crisis, says a Verité Research media release. It said: The publication titled: “The Lure of Chinese Loans: Sri Lanka’s experiment with a special framework to finance its infrastructure” sheds light on the perils of creating frameworks to facilitate deviations from competitive bidding to tap into concessional export credit from emerging economies such as China. The report analyses the design and execution of the special framework and finds that the lack of rigour in the evaluation process and the ability of decision-makers to exercise excessive discretion made the framework highly prone to abuse and misuse.

https://island.lk/sri-lankas-chinese-debt-making-international-headlines/


China’s no new coal power overseas pledge, one year on

(China Dialogue, London (Beijing?), 22 September 2020) Reform of investment and financing models still needed in order to better support green transitions. On 21 September 2021, China’s president, Xi Jinping, told the UN General Assembly via video link that China would increase support for green and low-carbon energy in developing countries, and not build any new coal-fired power projects overseas. China has been a major builder of coal power plants around the world, often providing both the finance and the technology. The Exim Bank of China, the China Development Bank (CDB) and the China Export and Credit Insurance Corporation (Sinosure) are the main state-owned financial institutions funding overseas projects, and as such have been quick to respond to the change in government policy. Exim Bank has successfully issued 3 billion yuan (US$425 million) in green bonds earmarked for clean energy investment. The Green Belt and Road Initiative Center provides research, analyses and information on the policies, economics, environment, sustainability and green finance of the Belt and Road Initiative (BRI) - also known as Silk Road Initiative. The Green BRI Center is part of the International Institute for Green Finance (IIGF) of the Central University of Finance and Economics (CUFE) in Beijing.

https://chinadialogue.net/en/energy/chinas-no-new-coal-power-overseas-pledge-one...


EU challenges China’s Belt and Road with €300bn Global Gateway

(Business News East, Berlin, 2 December 2021) The European Commission on December 1 revealed details of the EU’s €300bn ($340bn) Global Gateway Strategy, a global investment plan hailed as a "true alternative" to China's Belt and Road Initiative (BRI, or B&R). China has funded railways, roads and ports as BRI projects but it has come under fire from critics who say Beijing leaves some countries weighed down with loans they cannot hope to pay off. A centre-piece of Chinese foreign policy, BRI is accused of spreading “debt-trap diplomacy”. Critics of Global Gateway say in many ways it amounts to a repackaging of cash. As China pushes back against claims of "debt-trap diplomacy", the European Commission thinks it can sell Global Gateway as a "trusted brand".

https://www.bne.eu/eu-challenges-china-s-belt-and-road-with-300bn-global-gateway...


Iranian & Russian ECAs ink agreement to facilitate trade

(Tehran Times, Tehran, 10 September 2022) The Export Guarantee Fund of Iran (EGFI) has signed an agreement with the Russian Agency for Export Credit and Investment Insurance (EXIAR) with the aim of facilitating exports and providing the necessary guarantees for the development of trade between the two countries. According to Peyman-Pak of Iran's Trade Promotion Organization,, the agreement is signed with the aim of helping the traders of the two countries to use export insurance as an alternative to letters of credit (LC) and to reduce the risk of trade between the two countries. Emphasizing that the agreement has no credit limit and the signatories can issue guarantees up to one billion dollars, Peyman-Pak said: “This achievement has been made in line with the efforts of Trade Promotion Organization and Export Guarantee Fund of Iran to facilitate trade between the two countries of Iran and Russia.” It is not know if this agreement could include cover for Iran's alledged sale of military drones to Russia.

https://www.tehrantimes.com/news/476576/EGFI-inks-agreement-with-Russia-s-EXIAR-...


India has $5 bn new export opportunity in Russia

(Fortune India, Gurugram, 15 September 2022) With Europe maintaining trade sanctions on Russia, India has the potential to export $5 billion worth of goods to Russia in the next 12 months, A Shakhtivel, President, Federation of Indian Export Organisations (FIEO) has said. The export demand is high and supplies can start as soon as the rupee payment mechanism gets operationalised, he added. Russia now accounts for 18% of India’s crude imports; up from 1%  The ongoing Russia-Ukraine conflict may open up a $22.5 billion worth export opportunity across 83 commodities for India, says an analysis carried out by MVIRDC World Trade Centre, Mumbai.

https://www.fortuneindia.com/macro/india-has-5-bn-new-export-opportunity-in-russ...


US exports face empty container pile-up as supply chains recover

(Global Trade Review, London, 21 September 2022) Analysts are warning that ports in North America could become overwhelmed by a build-up of empty containers, as trans-Pacific supply chains and transportation times gradually return to pre-pandemic levels. The average time taken to deliver cargo soared to 112 days in February this year, nearly three times the average before Covid-19 struck, according to Denmark-based research and analysis firm Sea-Intelligence. As of late August, the most recent point for which data is available, that figure had dropped to 88 days.

https://www.gtreview.com/news/americas/us-ports-face-empty-container-pile-up-as-...


The role of ECAs in financing the transition to net zero

(Global Policy Journal, Durham, 23 September 2022) There is no net-zero world without a sustainable trading system, and trade finance is estimated to contribute to between 80–90% of all world trade. The first steps toward green ECAs have been taken, with the agreement announced at COP26 to end export credit support of unabated coal-fired power plants and the first net zero commitments to be made by [some] leading ECAs. In the coming months, there is an opportunity for the broader ECA community to step into the net zero-fold and work with private finance, policy makers, scientists, and civil society to accelerate an orderly and just transition to a net zero global economy. Our world depends on it. [Read the full 6 page report here. However, climate scientists warned in 2021 that the concept of net zero is a dangerous trap, noting that  “Net zero” is the point at which any residual emissions of greenhouse gases are balanced by technologies removing them from the atmosphere. This is a great idea, in principle. Unfortunately, in practice it helps perpetuate a belief in technological salvation and diminishes the sense of urgency surrounding the need to curb emissions now.]

https://www.globalpolicyjournal.com/articles/world-economy-trade-and-finance/rol...


TFG partners with UKEF and DIT to create a trade and export finance guide

(Trade Finance Global, London, 6 September 2022) Trade Finance Global (TFG) has partnered with UK Export Finance (UKEF), the UK government’s export credit agency, and Department for International Trade (DIT) to produce the UK Trade & Export Finance Guide. The 60-page guide comes against a backdrop of complex geopolitical circumstances and an ever-changing financial landscape. Exploring recent issues, such as the COVID-19 pandemic, Brexit, and the current Russia-Ukraine conflict, this guide aims to paint a clearer picture of how to navigate the current economic status of the industry.

https://www.tradefinanceglobal.com/posts/tfg-partners-with-ukef-and-dit-to-creat...


Chilean firm to receive Korean ECA $100 million fund for stable Australian lithium supply to South Korean firms

(Aju Business Daily, Seoul, 7 September 2022) Korea Eximbank, an official export credit agency in South Korea, will provide a fund of $100 million to SQM, a Chilean supplier of plant nutrients, iodine, lithium and industrial chemicals, to help ensure a stable supply of lithium for domestic battery and cathode material makers. The fund including $55 million in loans and $45 million in guarantees will be used to invest in SQM's development of lithium mines in Australia and the renovation and expansion of production facilities. SQM, one of the world’s biggest lithium producers, should supply lithium worth about $470 million to South Korean companies for 10 years.

https://www.ajudaily.com/view/20220907165152475


What's New August 2022

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

See all "What's New!" updates since 2005 here.

  • Ukraine agent claims OECD ECAs complicit in Russian war crimes
  • UK Treasury backs £3bn UKEF finance package for war-torn Ukraine
  • UK unveils critical minerals strategy and UKEF role
  • Iran expected to ink agreement with Russian ECA soon
  • Ukranian ECA supports US$5.6 million in exports
  • Equator Principles Association Issues Due Diligence Guidance Note
  • Berne Union releases latest Business Confidence Survey
  • Korean battery maker secures $2B loan from 3 ECAS
  • Nigeria,  Sun Africa ink US $1.5bn EXIM supported deal for electrification
  • IsDB and ICIEC offer $10.5bn package to ease global food crisis
  • TNG receives AU$200M K-Sure conditional debt facility for Mt Peake mine
  • Ugandan Banks seek to establish Shs1 trillion export credit facility

Ukraine agent claims OECD ECAs complicit in Russian war crimes

(Bloomberg, London, 23 August 2022) Through their little-known trade finance agencies, Germany, Italy and France have been among the biggest backers of Russian oil, gas and petrochemical development in the last several years, helping to enrich and insulate the country as it prepared to invade Ukraine. Since Russia’s annexation of Crimea in 2014 through late 2021, German, Italian and French export-credit agencies guaranteed almost $13 billion in financing for projects in Russia, according to exclusive data compiled by the Global Strategic Communications Council, a nonprofit, worldwide network of climate experts. German and Italian state-owned banks lent a further $425 million. Many of the projects that received funding have ties to sanctioned individuals, including Leonid Mikhelson, Russia’s second-richest person, and Gennady Timchenko, a close associate of Vladimir Putin. Germany and Italy arranged $4 billion in guarantees tied to Russia’s largest natural-gas processing plant, run by Gazprom PJSC, which was sanctioned in February. The five institutions — Euler Hermes, SACE, Bpifrance Assurance Export, KfW-IPEX Bank and Cassa Depositi e Prestititi — told Bloomberg they stopped new cover for or loans to Russian projects after the invasion of Ukraine, and said they were in compliance with applicable sanctions. Many export-credit agencies operate without much public scrutiny. They typically provide credit guarantees, loans and insurance to domestic companies doing business in riskier parts of the world. French, Italian and German firms probably would have stayed out of Russia over the past decade without that backing, said Marcos Alvarez, head of insurance for global financial institutions at DBRS Morningstar, a credit-ratings agency. “These public finance institutions have made their governments complicit in Putin’s war crimes, filling Russia’s war chest and helping the Kremlin secure new export routes for its blood oil and gas,” Oleg Ustenko, Ukraine’s chief economic adviser said.

https://www.bloomberg.com/news/articles/2022-08-23/germany-france-italy-backed-r...


UK Treasury backs £3bn UKEF finance package for war-torn Ukraine

(Sky News, London, 3 August 2022) The UKEF credit facilities comprise up to £2.3bn for the financing of military contracts identified by the Ukrainian government, with the remaining £700m earmarked for reconstruction projects. Insiders speculated that companies such as BAE Systems and Babcock International were likely to be among those signing individual contracts with UKEF. Chancellor Nadhim Zahawi's backing for the deal is contingent upon the resolution of legal questions relating to "the compatibility of these facilities with our international subsidy control obligations". "Clearly Ukraine is a high-risk market in which to operate commercially, and we must acknowledge the risk of losses is significant," he wrote. "UKEF must also therefore continue to mitigate against Exchequer losses as far as is reasonably possible." The chancellor added that all individual contracts would also require Treasury approval. In March, International Trade Secretary Anne-Marie Trevelyan wrote to Louis Taylor, UKEF chief executive, instructing the agency to maintain its £3.5bn "market limit" for the country. Although the £3bn support is modest in the context of Ukraine's military and reconstruction needs, it underlines Britain's central role in providing internationally support to the country. A source close to UKEF said it had so far provided £23m in financial guarantees to Ukraine, including support for a commercial shipment of COVID-19 tests to the country's Ministry of Health before the Russian invasion. The Treasury and UKEF both declined to comment on the new credit facilities. The Council of the European Union, which represents the bloc's 27 individual member states, has agreed to send €1 billion ($1 billion) in financial aid to Ukraine as Russia's invasion intensifies. On August 28, Josep Borrell, Vice-President of the European Commission, noted that the E.U. has financed the delivery of military support to Ukraine to enable Ukraine to fight back, providing humanitarian support and macro-financial assistance, to keep the Ukrainian state afloat. In total, € 9.5 billion have been mobilised by Team Europe so far, with up to €8 billion in additional macro-financial assistance in the pipeline. The Biden administration is set to announce it will give Ukraine an additional $3bn worth of arms on the country’s independence day. The US has so provided $10.6bn in military help for Ukraine since the Russian invasion. It is not known if the U.S. Exim has been involved in any of these arms deals. Reuters notes that, per Ukrinform, Sweden will provide another $46.75 million in military aid to Ukraine.

https://news.sky.com/story/treasury-backs-3bn-export-finance-package-for-war-tor...


UK unveils critical minerals strategy and UKEF role

(Global Compliance News, London, 7 August 2022) On 22 July 2022, the UK government published a policy paper entitled “Resilience for the future: The UK’s critical minerals strategy” (UKCMS). The UKCMS outlines how the UK will secure critical mineral supply chains to ensure the energy transition. It also sets out the UK state support for domestic production of critical minerals as well as enabling the supply from third-party nations. Global transition to energy systems powered by clean energy technologies is one of the biggest transformational changes that the world is undergoing right now and is driving demand for minerals that are vital in the manufacturing of such technologies. A significant amount of state support and private investment into the critical minerals sector is required to match the demand with the supply. State support will focus on enabling the supply from third-party nations by making funding or other types of support available, with export credit agencies playing a key role. UKCMS also highlights the importance of the UKEF for funding critical minerals and expressly states that UKEF products can support eligible critical mineral projects, including UK-based projects with potential to export or overseas projects that present opportunities for export of UK goods and services.

https://www.globalcompliancenews.com/2022/08/07/united-kingdom-the-government-un...


Iran expected to ink agreement with Russian ECA soon

(Tehran Times, Tehran, 26 August 2022) The Head of Iran’s Trade Promotion Organization (TPO) has urged Russia to take the necessary measures for signing an agreement between Export Guarantee Fund of Iran and the Russian Agency for Export Credit and Investment Insurance (EXIAR) in the coming weeks. He also announced Iran's readiness to establish banking relations with Eximbank of Russia and emphasized that Iran is ready to use all the banking capacities of the two countries in order to facilitate the financial transactions between the two sides in a meeting with Director-General of Russian Export Center Veronika Nikishina in Moscow. Nikishina for her part welcomed the Iranian side’s proposals, saying: “We gladly join the actions and decisions that are being made because we want to create acceptable conditions for expanding business in a competitive financial environment.”  Meanwhile, the Washington Post reported on August 29 that Russian cargo planes quietly picked up the first of scores of Iranian-made combat drones for use against Ukraine, in a move that underscores deepening ties between Moscow and Tehran while also highlighting Russia’s struggles to supply its overstretched military. The Financial Tribune of Iran reported on August 30 that a 125-strong business delegation from Russia made up of representatives of 78 companies are scheduled to visit Tehran from Sept. 19-21 to meet their Iranian counterparts and survey ways of expanding bilateral cooperation.

https://www.tehrantimes.com/news/476060/Iran-expected-to-ink-agreement-with-Russ...


Ukranian ECA supports US$5.6 million in exports

(CableFree TV, London, 25 August 2022) Under a special program for loans to exporters, banks have provided 14 loans for an amount of 33.2 million UAH.(US$895,000) supported by the Export Credit Agency of Ukraine. Another 12 agreements worth US$1.47 M are awaiting signature. The ECA’s partner banks have supported the issuance of an additional 8 loans under simplified collateral requirements under a special exporter loan program under martial law. It is noted that entrepreneurs from the regions of Ivano-Frankivsk, Rivne, Kiev, Odessa, Dnepropetrovsk, Zaporozhye and Chernivtsi have received loans. They export paper bags, wooden products, solid fuel boilers, parquet boards, furniture parts, furniture, rubber products and foodstuffs. According to the ECA, the export contracts received for the implementation of: loansthe total amount of supported exports will exceed US$5,5 M. As reported, in March the Verkhovna Rada generally passed a law to ensure a large-scale expansion of the export of goods (works, services) of Ukrainian origin through insurance, guarantees and cheaper loans. The document provides for ensuring the effective functioning of the export credit institution.

https://cablefreetv.org/banks-have-already-lent-to-ukrainian-exporters-for-33-mi...


Equator Principles Association Issues Due Diligence Guidance Note

(JD Supra, Sausalito, 23 August 2022) In July 2022, the Equator Principles Association published a Guidance Note on how to apply the latest iteration of the Equator Principles (EP), EP4, during the Environmental and Social Due Diligence (ESDD) process. The Guidance Note is significant because it addresses the changes to the pre-financial close ESDD required to be undertaken by Independent Environmental and Social Consultants (IESCs) under EP4, including with respect to projects located in Designated Countries that are no longer “deemed in compliance” with the Equator Principles solely by virtue of satisfying host country law. The E&S standards applied by export credit agencies (ECAs) and development finance institutions (DFI) do not generally distinguish between Designated Countries and Non-Designated Countries. As such, if ECAs or DFIs are involved in the financing of a project, then the scope of the IESC’s ESDD should be the same regardless of whether the project is located in a Designated Country or a Non-Designated Country.

https://www.jdsupra.com/legalnews/equator-principles-association-issues-5428665/


Berne Union releases latest Business Confidence Survey

(Trade Finance Global, London, 26 August 2022) The Berne Union released its latest Business Confidence Survey this week amid mounting geopolitical uncertainty. This latest rendition of the quarterly report shows that demand for export credit insurance is growing. This phenomenon appears to stem from heightened geopolitical risk around the world and the overall bleak economic outlook. Paul Heaney, Acting Secretary General at Berne Union, said, “Right now, geopolitical risk is pushing up demand, while the fragile economic environment ultimately means more expensive finance and less underlying trade and investment activity.”

https://www.tradefinanceglobal.com/wire/berne-union-releases-latest-business-con...


Korean battery maker secures $2B loan from 3 ECAS

(Reuters, Seoul 19 August 2022) South Korea's SK On battery maker has raised about 2 trillion won ($1.51 billion) from private equity firms, pushing the electric vehicle (EV) battery maker's valuation to around 20 trillion won as it works to expand production abroad, local media reported on Thursday. The battery unit of energy group SK Innovation Co Ltd (096770.KS) has been in talks with a local private equity consortium the Korea Economic Daily Newspaper said, citing unidentified investment banking sources. Last month, SK On secured a $2 billion loan from three export credit agencies to finance its factory in Hungary. In other news, Hyundai Mobis announced on Aug. 22 that Hyundai Motor Group (HMG) and LG Energy Solution have secured US$710 million to finance the construction of a battery cell joint venture plant in Indonesia. Hyundai Motor Co., Kia Corp., Hyundai Mobis and LG Energy Solution provided debt guarantees according to their stake, and the Korea Trade Insurance Corp., a state-run export credit institution, provided credit guarantees.

https://www.reuters.com/technology/skorean-ev-battery-maker-sk-raises-15-bln-exp...


Nigeria, Sun Africa ink US $1.5bn EXIM supported deal for electrification

(Pumps Africa, Nairobi, 16 August 2022) The government of Nigeria and Sun Africa have inked a deal to reduce the gap in access to electricity between the country’s urban and rural areas through the extension of the national electricity grid in underserved states. The two are set to partner and install solar energy production systems in a dozen localities poorly served by the national electricity network. As part of this energy policy, the authorities of this West African country have obtained a loan of US $1.5bn from the American export credit agency Exim Bank. With a gross domestic product (GDP) of 432.3 billion dollars in 2020 according to the World Bank, Nigeria, as the largest economy in Africa, has an electricity access rate of 60%, of which only 34% is in rural areas. 85 million people do not have access to electricity.

https://pumps-africa.com/nigeria-sun-africa-ink-us-1-5bn-deal-for-electrificatio...


IsDB and ICIEC offer $10.5bn package to ease global food crisis

(Trade Arabia, Jeddah, 30 July 2022) The Islamic Development Bank (IsDB) Group has endorsed a $10.54 billion comprehensive Food Security Response Program (FSRP) package that will support member countries in addressing the ongoing food crisis. The package was approved during an extraordinary joint meeting of the IsDB Board of Executive Directors, the Board of Directors of the Islamic Solidarity Fund for Development (ISFD), and the Board of Directors of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). The primary focus of the programme and the bulk of the financing envelope of the remaining $7.3 billion, which will span over the next three years, will be on developing innovative medium- and long-term interventions to address structural weaknesses and root causes of food insecurity in the member states. These include low productivity, rural poverty, climate change, and weak resilience of regional and national agricultural and food systems through six (6) key initiatives: (i) building agricultural resilience to climate change; (ii) food and input value-chains; (iii) smallholders' productivity and market access; (iv) rural livelihood support; (v) livestock and fisheries development; and (vi) building resilient food supply systems. The total IsDB Group's financing support for agriculture and food security currently stands at $20.6 billion, comprising 1,538 operations.

http://www.tradearabia.com/news/BANK_399096.html


TNG receives AU$200M K-Sure conditional debt facility for Mt Peake mine

(Kalkine Media, Sidney, 9 August 2022) One of the leading Australian resource and mineral processing technology companies, TNG Limited (ASX:TNG) has secured a major cornerstone component of the multi-source, global funding package for its Mount Peake Vanadium-Titanium-Iron Project in the Northern Territory. In the latest development, TNG has received a conditional debt funding of AU$200 million (US$138 M) from the Korea Trade Insurance Corporation (K-Sure), which is the official export credit agency of South Korea under the Ministry of Trade, Industry and Energy. This debt funding is for TNG’s flagship Mount Peake Project, as per the terms of a conditional Letter of Support.

https://kalkinemedia.com/au/stocks/metal-and-mining/tng-receives-au200m-conditio...


Ugandan Banks seek to establish Shs1 trillion export credit facility

(East Africa Monitor, Kampala, 29 July 2022) Banks are in advanced stages of launching a Shs1 trillion export credit facility to support manufacturers involved in export within East Africa. The move, which is being championed by Uganda Bankers Association (UBA), seeks to finance manufacturers increase Ugandan products in regional markets. The export credit facility seeks to plug existing gaps, facilitate production and provide funding to power the entrepreneurial ecosystem through fostering growth and harnessing attendant trickle down benefits.

https://www.monitor.co.ug/uganda/business/markets/banks-seek-to-establish-shs1-t...


What's New July 2022

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

See all "What's New!" updates since 2005 here.

  • IISD: Why ECAs must shift from fossil fuel support to clean energy
  • CSOs condemn G7 for caving in to gas industry - weakening pledge to end finance for fossil fuels
  • G-7 rolls out answer to China's Belt and Road initiative
  • EXIM plans aggressive marketing push and steady market growth
  • China's Sinosure registers steady business growth
  • EDC Plans 15% cut in fossil fuel portfolio by 2020
  • Belgian ECA restricts oil and gas finance but leaves gas loopholes
  • SK On Secures US$2bn in loan guarantees from 3 ECAs to Invest in Europe
  • EXIM Board approves Cameroon and Brazil Projects
  • OECD export credit rule changes could have long-term consequences for insurers
  • UK Export Finance provided £7.4 billion in support for UK exports last year
  • SACE supports Brazilian steelmaker CSN
  • French ECA cooperation agreements
  • Taiwan's Formosa 2 offshore wind plant starts with broad international ECA support
  • French ECA role in Polish nuclear expansion
  • French ECA supports Côte d'Ivoire coastal road loan
  • Australian ECA to provide $300m for Mount Peake vanadium-titanium-iron project
  • Norwegian ECA to provide €400m in guarantees and loans toward €1.6bn Arctic battery gigafactory

IISD: Why ECAs must shift from fossil fuel support to clean energy

(IISD, Winnipeg, 30 June 2022) If countries signing on to the COP26 Statement on International Public Support for the Clean Energy Transition shifted their almost US$28 billion/year from fossil fuels to jump-start the energy transition they would more than double their international clean energy finance. All international public finance institutions have yet to substantially scale up their clean energy support to catalyze a globally just energy transition and support energy security in a time of crisis. If the export credit agencies, development finance institutions and government departments of governments signing on to the COP26 Statement on International Public Support for the Clean Energy Transition were to fully redirect their USD 28 billion a year in overseas public finance for oil and gas, they would more than double their international clean energy finance, from USD 18 billion a year to USD 46 billion. As noted in our June 2022 ECA Watch What's New, between 2018 and 2020, G7 countries provided US$100bn towards oil, gas and coal projects through their export credit agencies (ECAs) or development finance institutions – over four times their contribution towards clean energy. As noted in our June 2022 ECA Watch What's New, between 2018 and 2020, G7 countries provided US$100bn towards oil, gas and coal projects through their export credit agencies (ECAs) or development finance institutions – over four times their contribution towards clean energy.

https://www.iisd.org/articles/press-release/glasgow-statement-could-shift-annual...


CSOs condemn G7 for caving in to gas industry - weakening pledge to end finance for fossil fuels

(Oil Change International, Washington, 27 June 2022) German Chancellor Olaf Scholz and other G7 leaders watered down a commitment made in May by their energy, climate and environment ministers to end international public finance for fossil fuels by the end of this year, drawing a swift rebuke from climate and development campaigners. Six out of seven G7 members had already adopted a near-identical commitment to shift public finance at the 2021 UN climate conference. The ministerial commitment was notable for adding Japan as Japan is the 2nd largest provider of international public finance for fossil fuels, pouring $11 billion into dirty overseas fossil fuel projects each year. The G7 leaders’ statement adds new loopholes to the commitment and says that “with a view to accelerating the phase out of our dependency on Russian energy … investment in [LNG] is necessary” and that “publicly supported investment in the gas sector can be appropriate as a temporary response”. Soon after the G7 ministerials, signals already emerged of countries backsliding on their commitment. Japan claimed it could continue financing upstream oil and gas projects despite the G7 pledge, and Germany’s Chancellor Scholz stated that Germany wants to “intensively” pursue gas projects in Senegal.

https://priceofoil.org/2022/06/28/csos-condemn-g7-leaders-for-caving-in-to-gas-i...


G-7 rolls out answer to China's Belt and Road initiative

(Politico, Washington, 27 June 2022) Biden and other G-7 leaders meeting in Germany on Sunday pledged to provide $600 billion in public and private financing for developing country infrastructure projects over the next five years, in a move aimed at countering China’s growing global economic clout. The United States will “mobilize” $200 billion of the public and private capital for the Partnership for Global Infrastructure (PGII), the G-7’s answer to China’s multitrillion-dollar Belt-and-Road infrastructure initiative that Beijing launched back in 2013. It is not clear what portion of the US $200bn support will come from EXIM.

https://www.politico.com/newsletters/weekly-trade/2022/06/27/g-7-promises-600-bi...


EXIM plans aggressive marketing push and steady market growth

(Reuters, Washington, 7 July 2022) The U.S. Export-Import Bank plans "aggressive" measures to restore its standing in the business community and to bump up credit volumes running at roughly a quarter of their levels from 2014 before it was hobbled first by Congress and then a global pandemic. In that span, EXIM faded in the minds of customers and foreign governments - and many simply never got to know it. Export-Import Bank President Reta Jo Lewis told Reuters. Republicans in Congress in July 2015 sought to permanently shutter EXIM, charging it was providing "corporate welfare" through cheap export financing for Boeing, General Electric, Caterpillar and other corporate giants. Its charter was restored after 4 months, but Republicans blocked EXIM board nominees for 4 more years, limiting it to loans of $10 million or less and shutting it out of the market for aircraft and major infrastructure projects. During the void, GE was among U.S. firms that turned elsewhere, agreeing in 2015 to move manufacturing of oilfield gas generator engines to Canada from Wisconsin, in a deal to access Canadian export financing. Meanwhile, China has continued to dwarf EXIM's efforts, providing $11 billion in official medium and long-term export credit in 2021, compared with $2.2 billion for the United States, according to EXIM's annual competitiveness report.

https://www.reuters.com/markets/us/us-exim-bank-chief-plans-aggressive-marketing...


China's Sinosure registers steady business growth

(Xinhua, Beijing, 28 July 2022) China's only policy-oriented insurer specializing in export credit insurance reported steady business growth in the first half of 2022. The China Export & Credit Insurance Corporation, also known as SINOSURE, had underwritten about 445.13 billion U.S. dollars worth of insured businesses during the period, up 11.8 percent year on year, according to the company. SINOSURE served nearly 164,000 clients in the first six months, a yearly increase of 15.2 percent, said the company. The company said it will make additional efforts to tide enterprises over difficulties and improve its digital services in the second half of the year, giving full play to its role in supporting exports and the Belt and Road Initiative.

https://english.news.cn/20220728/55ba832cdbee4985a861a04a01386f14/c.html


EDC Plans 15% cut in fossil fuel portfolio by 2020

(Bloomberg, Ottawa, 19 July 2022) Canada’s export credit agency is targeting a 15% cut to its financing portfolio for upstream oil and gas production by 2030. The target will include a 3% shift - against a 2020 baseline - in the composition of production to gas from oil, recognizing that the former may play a role in supporting energy demand during the transition to net-zero emissions. EDC, a government-backed lender, also wants a 37% reduction in emissions per passenger kilometer from its airlines portfolio by 2030. The new targets for two sectors that make up a sizable portion of the agency’s financing business are part of its broader push to achieve net zero by 2050. Meanwhile, UKEF claims to have spent “its first year without providing any support for overseas fossil fuel projects".

https://www.bloomberg.com/news/articles/2022-07-19/canada-export-bank-plans-15-c...


Belgian ECA restricts oil and gas finance but leaves gas loopholes

(Oil Change International, Washington, 15 July 2022) Today the Belgian export credit agency Credendo published a new policy to shift public finance out of fossil fuels and into clean energy. The policy is meant to implement a commitment that Belgium made alongside 33 other countries and 5 institutions at the United Nations climate conference in Glasgow last year. The group promised to end international public finance for fossil fuels by the end of 2022 and shift this money to clean energy. Though today’s new policy imposes additional restrictions on fossil fuel financing, it leaves loopholes for Credendo to continue financing new fossil fuel projects. According to the International Energy Agency, to maintain a 50% chance of limiting global heating to 1.5°C there can be no investments in new coal, oil or gas fields or Liquefied Natural Gas (LNG) infrastructure without stranded assets. Other research shows that on top of ending investments in new fossil fuel supply, 40% of already developed oil and gas reserves need to be left unextracted.

https://priceofoil.org/2022/07/15/belgian-export-credit-agency-restricts-oil-and...


SK On Secures US$2bn in loan guarantees from 3 ECAs to Invest in Europe

(Business Korea, Seoul, 29 July 2022) SK On, a battery business subsidiary of SK Innovation, has raised a total of US$2 billion for investment in Europe through official ECAS in Korea and Europe. The company plans to use the funds to finance the construction of its third European plant in Ivancsa, Hungary. The policy financial institutions that helped SK On to secure funds were Euler Hermes, a German trade insurance agency, Korea Trade Insurance Corp., and the Export-Import Bank of Korea. The three institutions provide guarantees or insurance for SK On in the process of getting loans from overseas banks. Germany’s Euler Hermes and Korea Trade Insurance Corp. will provide insurance worth USUS$800 million and USUS$700 million, respectively. The Export-Import Bank of Korea will offer a US$200 million guarantee. In addition, the Export-Import Bank of Korea will directly lend US$300 million to SK On.

https://www.businesskorea.co.kr/news/articleView.html?idxno=97556


EXIM Board approves Cameroon and Brazil Projects

(Global Trading Magazine, Dallas, 14 July 2022) The Export-Import Bank of the United States (EXIM) Board of Directors yesterday unanimously approved two transactions that will support U.S. exports to Cameroon and Brazil. Together, the two projects total more than $279 million, $74m for construction equipment in Cameroon and related goods and a guarantee for a $205.5 million loan from Citibank to Embraer S.A. in Brazil to support the export of U.S. manufactured aircraft engines and related components. Utilizing the production facilities of three U.S. exporters, General Electric, Honeywell and Pratt & Whitney, the transaction is expected to support approximately 1,200 U.S. jobs across the aerospace supply chain in North Carolina, Ohio, Arizona and Alabama. Since 1992, EXIM has generated more than $9 billion for the U.S. Treasury for repayment of overall U.S. debt.

https://www.globaltrademag.com/exim-board-of-directors-approves-final-commitment...


OECD export credit rule changes could have long-term consequences for insurers

(InsuranceDay, London, 4 July 2022) On November 5 2021, the OECD announced the minimum down payment requirement for the Arrangement would be cut from 15% to 5% for sovereign borrowers in developing markets.The change, which was implemented temporaryily for 12 months, stoked private market concerns that the impact on insurers could be longer term. Under the previous arrangement, official ECAs could only participate on the buyer credit portion of a given transaction, with a stipulation that the down payment portion (typically 15% of the value of the contract) should be provided by the private market. Normally, commercial banks that supply the loans for the down payment often then turn to the credit and political risk insurance market to cover the risk of default. The OECD has said this change is in response to a “clear market failure” caused by the ongoing Covid-19 crisis. In its view, the private sector was “very reluctant or even unwilling” to provide insurance cover for OECD Category II (low- and middle-income) countries, which in turn meant banks were unwilling to finance projects in these developing countries.

https://insuranceday.maritimeintelligence.informa.com/ID1141083/OECD-export-cred...


UK Export Finance provided £7.4 billion in support for UK exports last year

(Yorkshire Post, Leeds, 30 June 2022) British businesses received £7.4bn of Government support last year to help them secure export opportunities in 61 countries, according to the latest report from UK Export Finance (UKEF). The report concluded that finance provided by UKEF in 2021-22 supported 72,000 UK jobs and added a gross value of £4.3bn to the economy. Of those supported by UKEF, 83% were located outside of London and a record 81% were small and medium-sized enterprises, according to the organisation’s annual results. A spokesman said: “The £7.4bn – the highest level for 14 years – brings the total support over the last five years to £33.4bn. While proclaiming “its first year without providing any support for overseas fossil fuel projects", UKEF continued to promote a stalled US$1.5 billion LNG project in Mozambique following its 2020 backing of the project. As noted in our June 2022 ECA Watch What's New, between 2018 and 2020, G7 countries provided US$100bn towards oil, gas and coal projects through their export credit agencies (ECAs) or development finance institutions – over four times their contribution towards clean energy.

https://www.yorkshirepost.co.uk/business/uk-export-finance-provided-ps74-billion...


SACE supports Brazilian steelmaker CSN

(BNAmericas, Santiago, 12 July 2022) Brazilian steelmaker CSN has secured a credit facility worth US$375mn with Italian export credit agency SACE as part of the expansion plan for mining arm CSN Mineração. The funds will be used to buy equipment from Italian firms. The credit facility involves a pool of banks led by BNP Paribas, with Crédit Agricole, Natixis Corporate & Investment Banking and Société Générale Milan Branch. The credit facility involves a pool of banks led by BNP Paribas, with Crédit Agricole, Natixis Corporate & Investment Banking and Société Générale Milan Branch.

https://www.bnamericas.com/en/news/brazils-csn-obtains-us375mn-credit-facility-t...


French ECA cooperation agreements

(BPIFrance, Paris) This Bpifrance web page explains how national ECAs can cooperate to support projects involving exports from several countries, thus enhancing official ECA "subsidies" for corporate exporters. "Bpifrance Assurance Export interacts regularly with foreign export credit agencies at General Meetings and seminars of the Bern Union or at bilateral meetings, in the interest of exchanging and sharing best practices and expanding cooperation. With the internationalisation of production systems and increasingly frequent use of foreign sub contractors and providers, a single project can involve exports from several countries. For that reason, export support agencies have developed several forms of cooperation (joint insurance, co insurance, reinsurance) aimed at serving French exporters involved in a given project or contract in a third country. Thus, when certain contracts include a significant foreign content that make them ineligible for State support, insurance can be obtained through one of these mechanisms. Bpifrance Assurance Export has signed framework agreements with the majority of its peers. Where it does not already have a framework agreement with a given partner, a cooperation agreement may be entered into on a special purpose basis. Reinsurance is the most common form of cooperation used today.

https://www.bpifrance.com/products/export-credit-cooperation/


Taiwan's Formosa 2 offshore wind plant starts with broad international ECA support

(Project Finance International, London, 23 July 2022) The 367MW Formosa 2 offshore wind plant has achieved the first delivery of power to the Taiwanese grid, following the installation of 12 turbines. It will have 47 turbines when completed. The international lenders were BNP Paribas, Credit Agricole, Societe Generale, Natixis, ING, DBS, OCBC, MUFG, SMBC, ANZ Bank and HSBC alongside domestic banks CTBC, E Sun, Fubon Bank and KGI Bank, and institutional lender Taiwan Life Insurance. The export credit agencies are Credendo of Belgium, EKF of Denmark, K-Sure, and UKEF. The project, referred to as Haineng Fengdian, is off the island’s Miaoli County and is being developed by Japan’s JERA (49%), Macquarie’s Green Investment Group (GIG, 26%), and Taiwanese company Swancor Renewable Energy (25%).

https://www.pfie.com/story/3450973/taiwan-formosa-2-gets-first-power-p7jhy3g2mr


French ECA role in Polish nuclear expansion

(R and R Life, Manchester, 3 July 2022) Following French/Polish agreement in October 2021 to build 4 to 6 nucelear reactors, the French government has clearly stated its willingness to consider different ways to provide support, which is expected by the Polish side. Electricite de France (EDF) and the French government are open to discussions with the Polish government about who and what type of funding will be provided. EFF VP V. Ramany pointed out that France has a number of institutions that support such programs. "In debt financing, we have strong export credit insurance. This in turn helps in attracting banks to borrow for such projects. With regard to debt, we have, for example, the Public Development Bank SFIL, which can refinance debt at a relatively low cost." Poland generates most of its electricity from coal and was the only European Union member nation not to commit to climate neutrality by 2050 when the bloc set the target in 2019. But under rising pressure from the EU and with carbon emission costs surging, Warsaw is encouraging more investment in low emission sources.

https://www.randrlife.co.uk/announcement-by-the-edf-and-the-french-government-on...


French ECA supports Côte d'Ivoire coastal road loan

(Construction Index, 29 July 2022) Standard Chartered has announced €104 million (£88 million) of social loan financing for the Republic of Côte d'Ivoire’s Ministry of Economy and Finance, to rehabilitate a critical transport route in the south of the West African country. The money will go towards upgrading a stretch of the coastal road connecting the country’s two main port cities, Abidjan and San Pedro, as well as improving a 93km section of road between the towns of Dabou and Grand Lahou. The financing is backed by the French export credit agency Bpifrance Assurance Export. The financing package has been structured by Standard Chartered in its roles as global coordinator and structuring bank, social loan coordinator, bookrunner and mandated lead arranger.

https://www.theconstructionindex.co.uk/news/view/cte-divoire-gets-road-improveme...


Australian ECA to provide $300m for Mount Peake vanadium-titanium-iron project

(Australia Mining, Canberra, 11 July 2022) The Australian Government’s export credit agency has given a conditional Letter of Support for the provision of up to $300 million of debt funding for the construction of TNG’s flagship Mount Peake vanadium-titanium-iron project in the Northern Territory. Export Finance Australia is administering the Australian Government’s $2 billion Critical Minerals Facility, which has been established to assist in funding critical minerals projects. Mount Peake is one of 15 Australian critical minerals projects identified by the Australian Government in its Resources Technology and Critical Minerals Processing: National Manufacturing Priority Road Map.

https://www.australianmining.com.au/news/300-million-support-for-nt-critical-min...


Norwegian ECA to provide €400m in guarantees and loans toward €1.6bn Arctic battery gigafactory

(Global Construction, London, 1 July 2022) Norwegian battery-maker Freyr expects the plant to be one of the biggest and most efficient in Europe, with 50% lower capital spending per GWh of capacity and more than 200% higher production per employee than conventional lithium-ion facilities. The Giga Arctic project, which will be Freyr’s first, was announced on Wednesday by Jan Christian Vestre, Norway’s minister for trade and industry.

https://www.globalconstructionreview.com/battery-firm-to-build-e1-6bn-gigafactor...


Pages