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 for October 2024

"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?

ECAs prepare to lock horns over fossil fuel financing

(Global Trade Review, London, 14 October 2024) Ahead of crunch talks within the OECD Arrangement, climate groups are pressuring the US, Korea and Japan to agree to a comprehensive proposal that would halt billions of dollars in fossil fuel financing each year. In recent days, over 40 environmental and social activity groups have written to members of the OECD Arrangement on Officially Supported Export Credits, urging them to expand an existing ban on coal financing to also include oil and gas projects. Export credit agencies (ECAs) are among the world’s largest backers of fossil fuel transactions, often in developing regions such as Asia and Sub-Saharan Africa. Climate groups argue their support – in the form of guarantees, insurance and loans – can be vital in ensuring projects reach financial close. In the past year, the Export-Import Bank of the United States (US Exim) has seen two advisors on its climate board quit over a US$500mn loan guarantee backing oil and gas field expansion in Bahrain, while Japan’s agency has come under fire for financing a new gas field in Western Australia. Friends of the Earth, Oil Change International and BankTrack are among the signatories of the letter, which says it is “unthinkable that OECD agencies continue to pour billions into fossil fuel projects”.

https://www.gtreview.com/news/global/ecas-prepare-to-lock-horns-over-fossil-fuel...


Cutting Fossil Fuel Financing

(Friends of the Earth, Merrifield, 4 October 2024) Fossil fuel companies continue to be propped up by the government in the form of public financing like US EXIM. Often, these tax dollars are funding overseas fossil fuel projects wreaking havoc on our environment and local communities in places like Mozambique, India, Bahrain, Papua New Guinea — to name a few. At the 2021 United Nations Climate Change Conference (COP26) in Glasgow, more than 30 countries signed a commitment to end international public finance for fossil fuels and to prioritize funding for clean energy. If implemented fully, this resolution could shift $28 billion a year from fossil fuels into clean energy. In particular, the UK's ECA (UK Export Finance) cut its fossil fuel transactions from $11 billion to zero in just ten years. Previously, the agency had allocated more than 99% of its energy finance to fossil fuels. We have also seen great success pressuring other countries but the United States is the biggest violator of the COP26 commitment. In 2023 and, so far, in 2024, the US provided $3.5 billion for overseas fossil fuel projects. The US EXIM alone just approved financing for six mega-projects, including $500 million to develop 300 oil and gas wells in Bahrain. The US is the largest member of the coalition of signers and is the biggest problem. We will continue to pressure our export credit agencies to take this commitment seriously and accept responsibility and the largest historical climate polluter.

https://foe.org/impact-stories/cutting-fossil-fuel-financing/


Oxfam calls for a green overhaul of the US Export-Import Bank

(Hacker News, Mountain View CA, 17 October 2024) As mounting climate concerns cause extreme weather events, & global efforts intensify to keep warming below 1.5°C, Oxfam calls on the Export-Import Bank of the United States (EXIM) to cease funding fossil fuel projects to instead champion just & clean energy initiatives. In a new research report published today, “Alignment of the United States Export-Import Bank with the US climate & development policy objectives,” Oxfam America & Perspectives Climate Research found that EXIM has financed hundreds of fossil fuel projects globally since its founding & continues to finance the most climate damaging sectors: at least 60% of its current $40+ billion portfolio directly supports fossil fuel-producing or dependent sectors like oil, gas, & aviation. Despite a requirement in its charter to devote 5% of its funding to renewable energy, energy efficiency, & storage, in 2021, only $72 million – or 1.25% of EXIM’s new authorizations – were considered environmentally beneficial, & only 0.2% were for renewable energies.

https://news.ycombinator.com/item?id=41965160


Petrochemical Plant Wins EXIM Loan Despite Biden Climate Vow

(Bloomberg, New York, 11 October 2024) The US Export-Import Bank authorized a $690 million loan to help build a petrochemical plant in Malaysia, despite objections from climate activists who say the project flouts Biden-Harris administration promises to halt financing for fossil fuel projects abroad. The loan approved Thursday and disclosed Friday comes amid intensifying scrutiny of how independent US agencies are addressing climate change following decisions that run counter to President Joe Biden’s environmental agenda. In 2021 Biden issued an executive order vowing to curb public funding of climate-damaging ventures and the US signed a pledge with 33 other nations committing to halt such support.

https://www.bloomberg.com/news/articles/2024-10-11/petrochemical-plant-wins-us-l...


US Defense Dept Strategic Capital "arsenal"

(Lexology, London, 30 October 2024) The US Defence Department's Office of Strategic Capital (OFC) is one of the newest entrants in the US Federal arsenal of finance tools for growth companies, providing loans between $10M and $150M to develop critical technologies vital to national security, with an initial program of up to $984M. Another US federal loan program is the Dept. of Energy's Loan Program Office (LPO) which has a "budget" of up to $300 billion to finance domestic renewable energy companies and projects. Together with USEXIM's "Make More in America Program” (MMIA), created to spur U.S. manufacturing and create more resilient supply chains, these three often overlooked federal finance mechanisms take on the credit risk which traditional banks and non-bank lenders (e.g. private equity) cannot [or will not] take on and which impose terms that crush return on investment. [Rare earths developer Australian Strategic Materials (ASM) has indicated that Australian firms can potentially access US Department of Defence funding under the newly set up Office of Strategic Capital.]

https://www.lexology.com/library/detail.aspx?g=22b4f7a2-5be9-402f-918c-f5a5863a2...


Longer payment schedules adding to liquidity woes of India's exporters

(Financial Express, Delhi, 22 October 2024) Apart from higher costs and other difficulties, the disruption caused by the two war zones in the world has added to the liquidity woes of India’s exporters as they deal with longer payment schedules and the impact of the situation on export credit which is falling consistently since 2022. At the end of March 2022 quarter the outstanding export credit was at Rs 2.27 lakh crore and by the end of March this year it was down to Rs 2.17 lakh crore. While exports grew 15% between 2021-22 and 2023-24, export credit has fallen by 5%. On top of falling credit, the Red Sea disruptions have added to the liquidity pressures on exporters as payments are taking more time. All this has increased the time period of payment from less than 90 days to 120-150 days. Exporters now require more credit for a longer period and costs for them have increased. Despite the Export Credit Guarantee Corporation (ECGC) increasing the coverage of default in payment against exports to 90%, many of the banks have not reduced the collateral requirements which is also reducing the credit off-take by the sector.

https://www.financialexpress.com/business/industry-longer-payment-schedules-addi...


UK approves use of export finance to source critical minerals

(Innovation News, London, 31 October 2024) UK Export Finance (UKEF), the government’s export credit agency, will offer financial support for overseas projects to source critical minerals. Securing contracts that increase the UK’s ability to source critical minerals will help the UK build economic resilience and lower the risk of supply-chain disruption in major industries like automotive, defence, and aerospace. Critical minerals are raw materials like lithium, graphite, and cobalt, which are essential to the UK’s largest export sectors. They are used in emerging and sustainable technologies like electric vehicles, solar panels and wind turbines.

https://www.innovationnewsnetwork.com/uk-approves-use-of-export-finance-to-sourc...


US accelerates play for Africa’s minerals

(Africa Report, Paris, 1 October 2024) A new financing network and closer cooperation with Angola, Zambia and Tanzania all aim to challenge China’s grip on the continent’s resources. The United States and its allies consolidated their cooperation along a range of fronts during the UN General Assembly in the pitched battle for access to Africa’s critical minerals. [The Critical Minerals Africa (CMA) Summit – Africa’s leading investment platform for the critical minerals sector – will return for its second edition on November 6 - 7 in Cape Town. CMA 2024 brings together African and global policymakers, project leaders and key stakeholders along the critical minerals value chain to unlock and promote investment opportunities across Africa’s mining space.]

https://www.theafricareport.com/363094/us-accelerates-play-for-africas-minerals-...


NGOs urge banks & China to refuse support for Ugandan oil projects

(Mongabay, Menlo Park, 17 October 2024) A group of 28 NGOs have written to 34 banks, insurance companies and the Chinese government, urging them to deny financing and other support for oil and gas projects in Uganda. The letters, written by U.S.-based Climate Rights International (CRI) and 27 Africa-based NGOs, follow a report detailing numerous human rights violations and environmental harms at the Kingfisher oil project sites in Uganda. Similarly, Uganda’s Tilenga oil fields also face scrutiny over their ecological and social harms, including impacts on wildlife and displacement of local communities. Both Kingfisher and Tilenga are co-owned by French oil and gas giant TotalEnergies, the Chinese National Offshore Oil Company Uganda Ltd. (CNOOC), and the Uganda National Oil Company (UNOC). Both projects are also part of the East African Crude Oil Pipeline initiative (EACOP), where TotalEnergies is a major partner. The initiave aims to transport oil and gas from Uganda to Tanzania for export.

https://news.mongabay.com/short-article/2024/10/ngos-urge-banks-and-china-to-ref...


Uganda finally signs deal to start building 1,700km railway, dumping China

(Global Construction Review,  London, 15 October 2024) After 9 years of striving, the government of Uganda yesterday signed a contract with Turkish contractor Yapı Merkezi to build the first section of the country’s standard gauge railway. The €2.7bn deal was formalised in the capital Kampala by Bageya Waiswa, the permanent secretary for public works, and Erdem Arıoğlu, the vice chair of Yapı Merkezi. Waiswa said Uganda would use its own funds and loans from the UK’s Standard Chartered bank, backed by export credit guarantees, to finance the project. The deal follows a number of false starts. As far back as 2015, Uganda entered into an agreement with China Harbour, a subsidiary of China Communications, to implement the project, on the condition that Chinese capital would be made available to pay for the work. The reluctance of China’s Export–Import Bank to finance the scheme led Uganda last year to abandon the contract, clearing the way for the Turkish deal.

https://www.globalconstructionreview.com/uganda-finally-signs-deal-to-start-buil...


Hyundai gets $1.35B in export financing for Georgia EV facility

(Korea Joongang Daily, Seoul, 16 October 2024) The Korea Trade Insurance Corporation granted $1.35 billion in export financing to Hyundai Motor's $5.5 billion EV manufacturing facility in Georgia, which began partial operation in early October. The financing was decided to help Hyundai "strengthen its global competitiveness by offering financial support to its EV manufacturing facility in North America, one of the biggest auto markets in the world," the state-run export credit agency said Wednesday. The factory in Bryan County, Georgia, is the automaker's first EV-dedicated manufacturing plant in the United States. It recently started partial production, around six months ahead of schedule, in order to rapidly qualify for the U.S. government tax credits of up to $7,500 for EVs assembled in North America.

https://koreajoongangdaily.joins.com/news/2024-10-16/business/industry/Hyundai-g...


European ECAs reach out to Indian companies, banks

(Economic Times, Delhi, 24 October 2024) The Export Credit Agencies (ECA) of Germany (Euler Hermes), Austria (OeKB) and Switzerland (Swiss Export Risk Insurance SERV), together with the Swiss Business Hub India and Switzerland Global Enterprise, on Thursday reached out to Indian companies, banks and government institutions for opportunities for investment and cooperation.

https://economictimes.indiatimes.com/news/economy/foreign-trade/3-european-expor...


What did Cuba do with the €1.2 billion offered by Russia to build thermoelectric plants?

(Ciber Cuba, Miami, 18 October 2024) According to the agreement approved in 2015 by both governments, the resources would be invested in the construction of four generation units of 200 MW for two thermal power plants. In 2022, the regime quietly admitted that it had not met the conditions to access the loan. In September 2022, the Deputy Minister of Energy and Mines stated that Cuba had not been able to access the Russian credit of 1.2 billion euros for thermoelectric plants as it had not managed to secure the 10% upfront payment (120 million) needed to access this credit. [The US embargo affecting Cuban dollar earning exports undoubtedly had a major influence on this.]

https://en.cibercuba.com/noticias/2024-10-18-u1-e207888-s27061-nid290398-hizo-re...


What's New for September 2024

"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?

Western nations join forces to break China’s grip on critical minerals

(Financial Times, New York, 23 September 2024) Coalition of 14 governments announces financing network for projects to provide raw materials required by tech industry. Western nations are directing their development finance and export credit agencies to work with private industry to support critical minerals projects, in a drive to break China’s chokehold over a sector that is essential for high-tech industries. The Minerals Security Partnership, a coalition of 14 nations and the European Commission, will unveil a new financing network at an event in New York on Monday as they try to ramp up international collaboration and pledge financial support for a huge nickel project in Tanzania, backed by mining company BHP.

https://www.ft.com/content/2984ae03-df15-420b-89cc-9ad8337014a9


Rich Nations Running Out of Time to Curb Oil and Gas Funding

(Bloomberg, 17 September 2024) A group of developed nations will make a new push to resolve differences amid fading prospects for a deal to restrict funding of foreign oil and gas projects by their export credit agencies. Restricting export credit agencies is seen as a potentially important tool in curbing the flow of financing to fossil fuels projects. Group of 20 nations offered more than $30 billion for such ventures in 2022, led by Canada and South Korea, according to data compiled by Oil Change International, a climate advocacy group.

https://www.bnnbloomberg.ca/investing/2024/09/17/rich-nations-running-out-of-tim...


Critical Minerals Security Partnership may not be enough for Australia

(Australian Strategic Policy Institute, Canberra, 25 September 2024) Fourteen countries this week took what they intended to be a big step in countering China’s dominance of critical minerals supply. But it’s unclear whether the initiative will restore competitiveness of Australian production and investment in the face of massive subsidies offered by China and, in response, the United States. The Minerals Security Partnership, a coalition of 14 countries, including the G7, Australia, India, South Korea, and European Union members, announced plans for a finance network to boost investment in critical metals. The initiative will tap into domestic export credit agencies and development finance institutions to attract private sector capital to produce, extract, process and recycle critical minerals, especially in riskier markets. The partnership seeks to lower investment risks and drive global supply chain resilience by providing guarantees and concessional financing. Australia’s economic prosperity and national security are intrinsically linked to the exploitation of its abundant resources, notably critical minerals. These minerals are the new oil. They’re the building blocks for everything from emerging technology to energy transition. Although Australia has vast reserves, its critical mineral mining and processing are still threatened by the intense subsidy war between the US and China.

https://www.aspistrategist.org.au/critical-minerals-security-partnership-may-not...


Deutsche Bank & ECAs finance $3.1 billion Indonesian fossil fuel project

(Risk Net, London, 26 September 2024) Last year, Deutsche Bank was selected as sole hedge co-ordinator and hedge arranger for a landmark $3.1 billion project-financing deal in Indonesia. Deutsche Bank declined to say who the client was, only that it was a processing and petrochemical company that wanted to modernise and expand an oil and gas refinery in the country. The project is part of Jakarta’s strategy for reforming the country’s oil and gas sector. Indonesia’s economy remains heavily dependent on oil and gas, and yet for several years has imported far more of the commodity than it has produced. The $3.1 billion project-financing deal was one of the largest ever done in Indonesia, involving three export credit agencies and 22 commercial lenders.

https://www.risk.net/awards/7959972/deal-of-the-year-deutsche-bank


Switzerland still handing out fossil fuel finance like candy

(Swiss Climate Rambles, Berkely, 23 September 2024) According to its own website, the Swiss government’s export risk insurance agency SERV (Swiss Export Risk Insurance) has approved insurance for 7 gas projects with a total delivery value of CHF 3,375 million (or US$3,967 million at the current exchange rate) since the CETP took effect. The fossil fuel projects which SERV insured in 2023 and 2024 are listed in the following table. (Their delivery value may be larger than the value insured by SERV.) Switzerland is also the only country which has explicitly weakened its CETP policy. In March 2023, SERV pledged to end all its fossil fuel finance, with exemptions only for projects in line with the Paris Agreement’s 1.5°C goal. In July 2024, Oil Change International revealed that the agency had quietly watered down its policy by allowing SERV to fund any gas project it considers is in the “economic, foreign, trade & development policy interests of Switzerland”.

https://swissclimaterambles.substack.com/p/switzerland-still-handing-out-fossil


US Ex-Im Bank Eyes Investment in Another Mozambique LNG Project

(Bloomberg, New York, 12 September 2024) The US Export-Import Bank is considering funding a liquefied natural gas project led by Eni SpA off the coast of Mozambique, years after investing in an onshore facility to produce the fuel that’s been delayed by security issues and opposed by environmental groups. Eni’s planned Coral North floating LNG plant is listed by the official export-credit agency of the US, known as Ex-Im, as a pending project. “The financing amount would be disclosed upon final board approval,” the bank said in an emailed response to questions, declining to give a timeline for the decision.

https://www.bloomberg.com/news/articles/2024-09-12/us-ex-im-bank-eyes-investment...


Shifting and unlocking trillions for a just energy transition

(Oil Change International, Washington, 24 September 2024) Rich countries can mobilize well over $5 trillion a year for climate action at home and abroad by ending fossil fuel handouts, making big polluters pay, and changing unfair global financial rules. This briefing, endorsed by 36 civil society organizations, is published as global leaders meet at Climate Week NYC and the United Nations General Assembly ahead of COP29, where leaders must agree on a new global climate finance target (NCQG). This target must be at least $1 trillion annually in grants and grant-equivalent finance and is essential for countries to deliver last year’s commitment to transition away from fossil fuels. Only strong finance targets will unlock strong national climate plans (NDCs) due in 2025 that phase out fossil fuels. A new Oil Change briefing reveals how governments in North America and Europe are preparing to waste hundreds of billions of taxpayer dollars on these ineffective technologies, further benefiting the fossil fuel industry, despite their record profits. They add that carbon capture has a 50-year record of failure and ask why governments [and ECAs] are throwing billions of dollars at it?

https://www.oilchange.org/publications/road-to-cop29-shifting-and-unlocking-publ...


Rich countries could raise $5tn of climate finance a year, study says

(Guardian, London, 24 September 2024) Rich countries could raise five times the money that poor countries are demanding in climate finance, through windfall taxes on fossil fuels, ending harmful subsidies and a wealth tax on billionaires, research has shown. Developing nations are asking for at least $1tn (£750bn) a year of public funds to help them cut greenhouse gases and cope with the impacts of extreme weather. Research by the pressure group Oil Change International, published on Tuesday, shows that rich countries could generate $5tn a year from a combination of wealth and corporate taxes, and a crackdown on fossil fuels. A wealth tax on billionaires could generate $483bn globally, while a financial transaction tax could raise $327bn. Taxes on sales of big technology, arms and luxury fashion would be another $112bn, and redistributing 20% of public military spending would be worth $454bn if implemented around the world. Stopping subsidies [from OECD ECAs?] to fossil fuels would free up $270bn of public money in the rich world, and about $846bn globally. Taxes on fossil fuel extraction would be worth $160bn in the rich world, and $618bn globally.

https://www.theguardian.com/global-development/2024/sep/24/rich-countries-could-...


UK Steps Up Export Deals to French-Speaking Africa as has China

(BNN Bloomberg, Toronto, 7 September 2024) The UK has stepped up business in French-speaking West and Central Africa as it seeks new frontiers for its exports. UKEF was backing transactions in francophone Africa worth a cumulative £1 billion ($1.3 billion) at the end of the 2023-4 financial year, up from just £3 million in 2017-8. These countries now represents about 13% of UKEF’s portfolio on the continent. Meanwhile, China’s export credit agency Sinosure is increasingly dominant. China’s Sinosure has backed projects to support the country’s Belt and Road Initiative, a global development push that brought more than $120 billion of Chinese construction contracts and investments to Africa in its first 10 years, according to a study by the Green Finance and Development Center at Shanghai-based Fudan University. China is not bound by the same rules as the UK and France, which are members of the OECD. The OECD has in the past few years made it easier for ECAs to cover costs in the recipient’s country. Both UKEF and Bpifrance Assurance Export require at least 20% of a transaction’s value to come from businesses in their country.

https://www.bnnbloomberg.ca/business/international/2024/09/07/uk-steps-up-export...


The real effects of trade financing by export credit agencies

(Centre for Economic Policy Research, London, 9 February 2024) Trade finance subsidies, usually provided by export credit agencies, are the predominant tool of industrial policy. This column discusses the effect of the effective shutdown of the Export–Import Bank of the US (EXIM) from 2015—2019 on firm outcomes. It finds that firms which previously relied on EXIM support saw a 18% drop in sales after the agency closed, driven by a reduction in exports. Firms affected by the shutdown also laid off employees and curtailed investment. Overall, export credit subsidies can boost exports even in countries with well-developed financial markets, without necessarily leading to a misallocation of resources.

https://cepr.org/voxeu/columns/real-effects-trade-financing-export-credit-agenci...


Ukranian ECA insures first investment loan against war risks

(Government of Ukraine, Kiev, 16 September 2024) The Export Credit Agency (ECA) has signed the first war risk insurance contract for an investment loan. This was announced by First Deputy Prime Minister and Minister of Economy of Ukraine Yuliia Svyrydenko during the event “Economic Policy of Ukraine. Recovery During the War” in Kyiv on 16 September.

https://www.kmu.gov.ua/en/news/eka-zastrakhuvalo-pershyi-investkredyt-vid-voienn...


UKEF pushes Titanic builder Harland & Wolff into administration

(Splash 247, Singapore, 17 September 2024) Harland & Wolff, the owner of the Belfast shipyard that built the Titanic, has announced that it will be entering into administration this week after failing to find new funding following the UKEF rejection of the company’s request for a £200m facility. The company said its request for a £200 million (US$260 million) loan from the UK government's export credit agency UK Export Finance had been had been rejected, leaving it in financial trouble.

https://splash247.com/titanic-builder-harland-wolff-heads-for-administration


AGA seeks to raise USD 6.5bn for major Aussie green ammonia project

(Renewables Now, 13 September 2024) Allied Green Ammonia Pty Ltd has hired Affinity Capital Group as a lead manager and strategic financial adviser to help it raise about USD 6.5 billion (EUR 5.90bn) for the development and construction of a large-scale green hydrogen and ammonia facility in the Northern Territory of Australia. The company is currently in negotiations for preapproval for about 70% of the engineering, procurement and construction contract value from the Spanish Government Export Credit Agency CESCE.

https://renewablesnow.com/news/aga-seeks-to-raise-usd-65bn-for-major-aussie-gree...


Britain plans to reopen Cuba export credit coverage

(Journal of Commerce, London, 26 September 2024) Cuba and Britain have agreed to reschedule $27.7 million of short-term debt owed by the communist-ruled island, opening the way for London to resume medium-term export credit cover to Havana.Britain's government-funded Export Credit Guarantee Department, which withdrew medium-term cover in 1983, said the deal was signed in London last week with Cuban central bank President Francisco Soberon. Cuba, which has more than $11 billion in foreign debt, already has such cover with France, Spain and Italy. British businesses have long complained that this put them at a disadvantage to their European competitors. UK Export Finance and the Government of Cuba are working together to identify trade opportunities, particularly related to renewable energy and tourism infrastructure. A number of UK companies have already expressed an interest in potential projects on the island. UKEF can consider short-term (less than 2 years) transactions where payments are secured by a non-confirmed Irrevocable Letter of Credit,

https://www.joc.com/article/britain-plans-to-reopen-cuba-credit-coverage-5342690


Russian ECA decries fake news re Bangladesh nuclear power plant embezzlement

(Business Post, Dhaka, 11 September 2024) Russia has said those who produce and spread "fake news" about alleged embezzlement at Bangladesh's Rooppur Nuclear Power Plant deliberately attempt to “discredit” this ambitious project and to “undermine” beneficial relations between Moscow and Dhaka. As of September 3, 2024, approximately US$7.8 billion out of US$11.9 billion provided by Russia to Bangladesh under state export credits for the implementation of the Rooppur NPP project, has been utilised. This amount includes transactions under two separate agreements: US$491.3 million under the first agreement dated January 15, 2013 (this credit amounted up to US$500 million, and its utilization period expired in 2017), and US$7.3 billion under the second agreement dated July 26, 2016. The full amount of the second export credit is US$11.38 billion out of which 64% has been used, and its utilisation period expires on December 31, 2024. [According to an 18 August 2024 BanglaNews article, ousted Bangladesh Prime Minister Sheikh Hasina, her son Sajeeb Wazed Joy and niece Tulip Siddiq embezzled US$5 billion from the overpriced US$12.65 billion Rooppur nuclear power plant through Malaysian banks, according to a report by Global Defense Corporation.

https://businesspostbd.com/diplomacy/moscow-decries-fake-news-about-ambitious-ro...


What's New for August 2024

"What's New!" is a periodic update to keep you informed of the latest on the Export Credit Agency 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!

Out With the Old, Slow With the New

(International Institute for Sustainable Development, Winnipeg, 27 August 2024) Countries are underdelivering on fossil-to-clean energy finance pledge. This report analyzes the progress made by Clean Energy Transition Partnership (CETP) signatories on shifting international public finance away from fossil fuels and into clean energy. It finds that although significant progress has been made on cutting finance for fossil fuels, signatories are not increasing renewable investment at the same scale. At the United Nations Climate Change Conference (COP) in November 2021, 39 countries and public finance institutions signed the Clean Energy Transition Partnership (CETP), a joint commitment to end international public finance for fossil fuels by the end of 2022 and prioritize international public finance for clean energy. To realize the CETP's transformative potential, new policies are needed to boost clean energy financing. All high-income signatories need to review and update their policies! The Financial Times notes that a group of more than 30 countries cut public funding for fossil fuel projects overseas by up to $15bn last year, a report has found, although the US has continued to pour billions into oil and gas finance.

https://www.iisd.org/publications/report/countries-underdelivering-fossil-clean-...


Biden Urged to Make EXIM Stop Fueling Climate Crisis

(Common Dreams, Portland, 7 August 2024) Climate advocates on Wednesday formally urged the Biden administration to instruct the United States' export credit agency to stop financially supporting activities that are fueling the climate emergency. "Over the last two centuries, human-caused greenhouse gas emissions have led to global warming of 1.1ºC above preindustrial levels by 2020 and caused detrimental changes in Earth's climate," Friends of the Earth (FOE) and the Global Law Alliance for Animals and the Environment wrote to U.S. Secretary of State Antony Blinken. Their letter calls on Blinken to "make a determination pursuant to the Chafee Amendment in the Charter of the U.S. Export-Import Bank... that EXIM should deny applications for financial support for all activities and projects whose life-cycle emissions intensity substantially contributes to greenhouse gas emissions and the climate crisis."

https://www.commondreams.org/news/us-export-import-bank


Canada's EDC nursing steep losses from billions loaned to Thames Water

(Water Briefing, London, 10 August 2024) Canada’s state-backed export credit agency is reportedly nursing steep losses after lending debt-ridden Thames Water as much as a billion Canadian dollars. The British utility, which has said it could run out of cash by next June, received five loans from Export Development Canada (EDC) between 2018 and 2022 after the Canadian pension fund Omers had invested. The total value of the loans was between C$750m and C$1.45bn (between £422m and £820m), EDC said, while declining to give an exact figure. EDC sold the loans at a deep discount in recent weeks, according to the Financial Times, which cited unnamed investors. EDC declined to comment on whether it had lost money. A spokesperson said: “EDC has been carefully following the recent challenges encountered by the utility and with the regulator’s recent determination and Omers’ decision to write down its stake, we are assessing the best course of action to manage our loan exposure with the company.

https://waterbriefing.org/home/finance-and-risk/item/22504-export-development-ca...


Ukraine's State Property Fund Plans ECA War Risk insurance

(Ukraine Business News, Kyiv, 26 August 2024) The State Property Fund of Ukraine (SPFU) is actively seeking opportunities to expand export insurance instruments to cover war risks for privatization objects, said the head of SPFU, Vitaliy Koval. The SPFU is also appealing to international insurance companies with a proposal to expand export insurance instruments and involve them in covering war risks. This will help demonstrate to international insurers such as Czech EGAP, Japanese JICA, export credit agencies from Germany (Euler Hermes), France (Bpifrance Assurance Export), Italy (SACE), British (UK Export Finance), and Swedish (EKN) the presence of real demand for such services and will contribute to the activation of their work in Ukraine,” said Koval.

https://ubn.news/the-state-property-fund-plans-to-introduce-military-insurance-f...


EU launches export credit facility for Ukraine

 (Global Trade Review, London, 2 August 2024) The European Union has launched an inaugural risk-sharing facility for the export credit industry, with an initial €300mn pilot aimed at boosting SME exports to buyers in war-torn Ukraine. The move comes after years of discussions in Brussels over a potential EU export credit facility with the Commission first floating the idea of such an instrument in 2021, citing “harsh competition” in key markets. The facility will extend guarantees to export credit agencies (ECAs) for transactions involving European SMEs and small mid-caps looking to export goods and services to buyers in the Ukrainian market. It is hoped the export credit facility will drive an uptick in European exports to Ukraine and support Kyiv’s reconstruction plan, forecast by the World Bank to cost US$486bn over the next decade.

https://www.gtreview.com/news/europe/eu-launches-export-credit-facility-for-ukra...


India's RIL secures over $7 billion in offshore finance

(Hindu Business Line, Mumbai, 7 August 2024) Reliance Industries (RIL), India's largest private sector company, secured over $7 billion in various offshore financing initiatives in FY24, and it would continue to monitor financial markets to seize suitable opportunities for capital raising to support its growth plans.. It obtained $4.45 billion in syndicated term loans facilities offshore. RJio also secured $2.2 billion to finance equipment and services for its pan-India 5G rollout comprising first-ever Finnish Export Credit Agency (Finnvera) supported facilities of $1.6-billion equivalent and $600-million equivalent facilities from Canadian Export Credit Agency. It also tied up $625 million with Korean Export Credit Agency to finance the purchase of floating, production, storage and offloading vessel in the oil and gas business.

https://www.thehindubusinessline.com/companies/ril-secured-over-7-billion-in-off...


Arab oil and gas sector attracted investments worth $406bn over 22 years

(Arab News, Jeddah, 7 August 2024)  RIYADH: Arab nations have attracted $406 billion in investments from 356 foreign and regional companies in the oil and gas sector over the past 22 years, according to recent data from the Arab Investment and Export Credit Guarantee Corp., also known as Dhaman. During this period, which spans from January 2003 to May 2024, the region has seen the execution of 610 projects. The US has emerged as the leading investor, with 85 projects representing approximately 14% of the total. In terms of investment costs, Russia has taken the lead, contributing $61.5 billion, which constitutes about 15.2% of the total investment. The Middle East remains the largest holder of proven oil reserves globally. As of 2023, it accounts for approximately 55.5% of the world’s known oil reserves, according to the global statistics platform Statista. However, the region’s share has declined from nearly 63% in 1960 to less than 56% by 2020. Future projections indicate a continued decline in proven oil reserves in the Arab region. In other news Saudi Arabia is investing in a gigantic Red Sea tourism alternative to oil, with a $3.8bn loan raised by the Saudi government-owned Red Sea Development Company. Due for completion in 2030, the so-called ‘giga-project’ will spread across 22 of the 90 islands that form an archipelago off Saudi Arabia’s west coast, as well as inland, and offer 50 hotels with 8,000 hotel rooms. The first ECA green loan in Saudi Arabia was a $258m loan last year that German credit insurer Euler Hermes structured alongside Crédit Agricole CIB and HSBC. The proceeds were for the Ministry of Finance to acquire 842 buses for the new Riyadh public transport network from Daimler’s bus subsidiary in Germany. Another ECA loan covers the purchase of 50 electric vertical take-off and landing (eVTOL) jets from Lilium GmbH under a Saudi Export Import Bank export credit insurance policy supporting Saudi non-oil trade.

https://www.arabnews.com/node/2564311/amp


Export credit agencies roar back in Africa

(Global Trade Review, London, 31 July 2024) There was a rebound in export credit agency activity in Sub-Saharan Africa last year, as agencies struck big-ticket deals across infrastructure and renewable energy sectors, fresh data shows. In its annual State of the Industry Report, the Berne Union reveals that export credit agencies (ECAs) and insurers recorded US$23bn in new medium and long-term (MLT) business in Sub-Saharan Africa in 2023, marking a resurgence in activity following a lull period in the immediate aftermath of the Covid-19 pandemic. In its annual State of the Industry Report, the Berne Union reveals that export credit agencies (ECAs) and insurers recorded US$23bn in new medium and long-term (MLT) business in Sub-Saharan Africa in 2023, marking a resurgence in activity following a lull period in the immediate aftermath of the Covid-19 pandemic. New ECA and insurer-backed transactions worth US$12bn were signed in Sub-Saharan Africa in 2022, and US$14bn in 2021, says the Berne Union, which represents ECAs, multilateral insurers and commercial underwriters. But last year an “infrastructure boom” triggered a rebound in the export finance market.

https://www.gtreview.com/news/africa/export-credit-agencies-roar-back-in-africa/


UKEF reveals £8.8bn government support for UK firms in 2023/24

(Insider Media, Manchester, 1 August 2024) Businesses across the UK benefited from £8.8bn of funding support underwritten by UK Export Finance (UKEF) in the 2023/24 financial year. As the UK government’s export credit agency, UKEF provides loans, guarantees and insurance to help businesses sell their products around the world. The agency's support in the last financial year enabled 650 UK companies to win or undertake export contracts – an average of almost two businesses securing export financing every day of the year. Businesses across the UK benefited from £8.8bn of funding support underwritten by UK Export Finance (UKEF) in the 2023/24 financial year.

https://www.insidermedia.com/news/national/ukef-reveals-8.8bn-for-support-for-uk...


The Role of Export Finance in Global Shipping’s Sustainable Growth

(Hellenic Shipping News, Cyprus, 12 August 2024) From mitigating risks associated with financing large-scale maritime projects to promoting sustainability and compliance, export finance plays a pivotal role in the shipping industry. Shipping moves 11 billion tons of goods each year, amounting to 1.5 tons per person worldwide, underscoring its indispensable role in international trade and economic development. Therefore, export finance strengthens the financial backbone that facilitates global trade operations. Investments in modernizing fleet technologies can lead to significant reductions in emissions, operational costs, and improved competitiveness on a global scale. While the global shipping industry represents a critical component of international trade, its operations have significant negative impacts on the environment, ranging from emissions to disturbances in marine ecosystems. In fact, even though maritime shipping is the most carbon-efficient method of transporting goods, it still accounts for 3% of all CO2 emissions worldwide. To achieve massive measurable impact in the shipping industry, strategic initiatives focusing on sustainable technologies and innovative financing solutions are paramount. Export finance [could act] as a key enabler by providing the necessary funding and financial instruments to support these large-scale retrofitting projects.

https://www.linkedin.com/pulse/role-export-finance-global-shippings-sustainable-...


Cesce backs green loan for Iberdrola renewable expansion

(Global Trade Review, London, 5 August 2024) Spain’s export credit agency Cesce has agreed to cover a €500mn green syndicated loan for Iberdrola, backing its renewable expansion plans globally. The 15-year facility will help fund solar photovoltaic, wind and battery projects in the US, Italy and Australia. The total renewable capacity financed will reach 897MW and is expected to be operational between 2025 and 2026,” Iberdrola says. The facility furthers the Spanish energy company’s goal of diversifying its financing pool and brings its overall volume of export credit agency (ECA)-covered loans to a total of €2.5bn, it says. Last year, Norway’s ECA guaranteed a €500mn loan from Citi for a wind farm off the UK coast.

https://www.gtreview.com/news/sustainability/cesce-backs-green-loan-for-iberdrol...


UK & Polish ECAs target green exports with €249 million for Turkish solar project

(UK Government, London, 8 August 2024) UK Export Finance (UKEF) and KUKE, the UK and Polish export credit agencies, have guaranteed a €249 million loan being arranged by Standard Chartered Bank for Turkish renewable energy investment company Kalyon Enerji, enabling the construction of Turkey’s second-largest solar project to date. This deal is expected to support UK jobs in the renewable-energy sector supply chain, particularly in the Midlands.

https://www.gov.uk/government/news/uk-and-poland-target-green-exports-with-249-m...


UKEF to finance Cambodia’s infra for exports

(Khmer Times, Phnom Penh, 7 August 2024) The UK Export Finance (UKEF), a United Kingdom government ministerial department and the nation’s export credit agency, Tuesday expressed the willingness to finance Cambodia’s infrastructure projects and public services to attract investment from the British. The UKEF delegation was on a three-day mission from August 5-7 to explore opportunities for strengthening cooperation under the export finance framework in Cambodia. The Head of UKEF appreciated the efforts of the working groups which led to the development of all sectors across the country, especially the public infrastructure sector, a key to support the socio-economic development of Cambodia. “As part of the International Development Strategy, the UK Government is committed to supporting Cambodia’s socio-economic development by promoting investment in infrastructure and public services.”

https://www.khmertimeskh.com/501537180/ukef-to-finance-kingdoms-infra-for-export...


EXIM Board approves landmark $1.6 billion solar energy and water project in rural Angola

(Smart Water Magazine, Madrid, 29 August 2024) The Board of Directors of the Export-Import Bank of the United States (EXIM) approved a historic $1.6 billion direct loan to support the construction of 65 solar photovoltaic energy mini-grids with energy storage facilities that will power water collection, treatment, and purification systems in four southern provinces in Angola. The project will increase access to electricity and potable drinking water in several provinces in Angola that previously had little access and will promote improved health, education, and social wellbeing. The transaction, involving ING Capital, Sun Africa, and Omatapalo is estimated to support 3,100 U.S. jobs.

https://smartwatermagazine.com/news/export-import-bank-united-states-exim/exim-b...


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