(Bloomberg, Miami, 24 April 2020) After missing out on U.S. emergency aid, Norwegian Cruise Line Holdings Ltd. and Royal Caribbean Cruises Ltd. are benefiting from a debt-holiday initiative by Germany’s export credit agency, Euler Hermes Aktiengesellschaft. The coronavirus pandemic has hammered the cruise industry, which shuttered operations in mid-March after a series of outbreaks at sea. The companies have been raising money and cutting expenses to weather a period without customers. The biggest companies were left out of the U.S. rescue package because they aren’t incorporated stateside. Most of the cruise industry is incorporated in places where companies can avoid U.S. income taxes and minimum wage requirements. Norwegian said the 12-month debt holiday — which applies to debt used to finance ships — will provide about $386 million in additional liquidity through April 2021. Royal Caribbean said it will add $250 million through debt holiday agreements with Euler. In addition, the national governments of France, Finland, Italy, Norway and Germany have agreed that cruise shipping companies could apply to suspend the repayment of their debts financed by state export credit guarantees for one year.
Norway
Norwegan ECA blacklists shipbuilders over human rights abuses
(Asia Shipping Media, Singapore, 5 June 2019) Norway is pushing to create a shipbuilding regulation akin to the ship recycling sector’s Hong Kong Convention whereby yards will be blacklisted for financing if they are found to have deficient labour and human rights standards. The initiative is being led by the Norwegian Export Credit Guarantee Agency (GIEK), the giant Norwegian state-run financing institution. Speaking at a human rights in shipping seminar yesterday on the sidelines of the Nor-Shipping exhibition just outside Oslo, Sigrid Brynestad, GIEK’s senior sustainability expert, revealed her organisation has already blacklisted two yards for their human rights abuses. GIEK will not help finance any Norwegian ships at the two yards.
German Bank, Norwegan ECA Join Responsible Ship Recycling Initiative
(Maritime Executive, Fort Lauderdale, 25 April 2018) The German bank KfW IPEX-Bank has become the first German bank to join the Responsible Ship Recycling Standards initiative. With a lending volume of EUR 13.9 billion ($17 billion) in 2017, KfW IPEX-Bank is one of the top five ship financiers in the world, and, by joining the initiative, highlights that it is setting high standards for the environmental and social compatibility of its financing. At the end of May 2017, ABN Amro, ING and NIBC established the Responsible Ship Recycling Standards. The initiative now has eight members worldwide, with Nordea, DNB, SEB and Export Credit Norway having joined the three founding banks.
Norway launches new ECA backing in push for diversity
(Global Trade Review, London, 5 July 2017) Norwegian export credit agency Giek has launched a new lender guarantee for export-related investments in Norway. The new product will provide guarantees to banks that finance corporate investment in Norway, where the investment directly or indirectly leads to exports. Aimed at boosting diversity in the oil and gas-rich nation, the guarantees will not be applicable to oil and gas processing plants, tourism, real estate development and large infrastructure projects.
Iran ECA Finance Talks Making Headway
(Financial Tribune, Tehran, 19 June 2017) Iran has held negotiations with Italy’s Medibank and SACE export guarantee for €2 billion ($2.24 billion), Exim Bank of China for $30 billion, China Development Bank for $15 billion, Korea Export–Import Bank for $8 billion and Korea Trade Insurance Corporation for $5 billion to receive foreign financing. Other parties involved in finance negotiations with Iran include Japanese Nippon Export and Investment Insurance and the Japanese Ministry of Finance for $10 billion, the Japan International Cooperation Agency for €1.2 billion ($1.34 billion), Russian Ministry of Economic Development for €5 billion ($5.6 billion) and the Norwegian Guarantee Institute for Export Credits for €1 billion ($1.1 billion). Euler Hermes of Germany is also interested in covering investments in Iran. However, a lack of full-fledged banking ties between Iran and Europe is preventing the complete benefits of the German sovereign guarantee to be felt by Iran.
Law firm helps secure Norwegian ECA US$100m facility for massive Australian offshore oil project
(Austral Asian Lawyer, St. Leonards NSW, 15 March 2017) Global law firm Norton Rose Fulbright has advised on a US$100 mn term loan and guarantee facility which will be used by Woodside for its offshore operations in Western Australia. The facility has export credit support provided by DNB Bank ASA and the Norwegian Export Credit Agencies (ECA)… NRF advised Eksportkreditt Norge AS as lender; DNB Bank ASA as agent and arranger, ECA co-ordinator and ECA guarantor; and Norway’s Guarantee Institute for Export Credits (GIEK) as ECA guarantor on the loan and guarantee facility. The facility will be used to support the delivery of subsea equipment for installation on the seabed to support Woodside’s $1.9bn Greater Enfield project, an offshore oil project which will include up to 14 wells, according to projectconnect.com.au.
Norway export credit institute sees Iran trade opportunity
(IranOilGas, Tehran, 4 March 2017) Officials from the Export Guarantee Fund of Iran and Norwegian Guarantee Institute for Export Credits (GIEK) discussed expansion of ties during a meeting held in Tehran… Commenting on Norway’s $1 billion credit line for covering trade with Iran, Wenche Nistad, GIEK’s chief executive, said: “The plan is still in its early phases; more time is needed for starting such projects as we need to learn more about each other, know more about doing business with Iran and get familiar with Iran’s banking system.”
