(Digital Journal, New Jersey, 17 January 2022) A new intelligence report released by HTF MI with the title “Credit Insurance Market Survey & Outlook” is designed covering micro level of analysis by Insurers and key business segments, offerings and sales channels. Some of the key players profiled in the study are Euler Hermes, Sinosure, Atradius, Coface, Zurich, Credendo Group, QBE Insurance & Cesce. The global Credit Insurance market was valued at US$12,610 million in 2021 and is projected to reach US$14,500 million by 2028. This study mainly helps understand which market segments or Country; Insurance carriers, Aggregators should focus in years to come to channelize their efforts and investments in Credit Insurance to maximize growth and profitability. [The cost of this report is not advertised and my efforts to access an advertised summary were blocked.]
Newsletter
UAE and South Korean ECAs in pact to boost green energy projects
(National News, Abu Dhabi, 17 January 2022) Etihad Credit Insurance has signed an agreement with the Korea Trade Insurance Corporation, better known as K-Sure, to boost investment in the development of sustainable green energy. The partnership will focus on hydrogen projects and seek to boost trade relations between the UAE and South Korea.
Swedish Export Credit Corporation recruits Head of Sustainability
(Market Screener, 14 January 2022) The Swedish Export Credit Corporation, SEK, establishes a new role in the executive management to accelerate work on sustainability, and has recruited Maria Simonson as Head of Sustainability. Maria has joined SEK from Danske Bank where she was Head of Group Sustainability. The Swedish Export Credit Corporation (SEK) is a state-owned company that finances Swedish exporters, their suppliers, and international buyers of Swedish products and services. SEK states that “Sustainability is central to SEK’s operations, and therefore it is a natural step to finance the industry’s transition to a fossil-free society; a development that also creates new export opportunities.”
UK holds Africa Investment Conference aimed at UK “green” exports
(RunningAfrica, location unknown, 21 January 2022) The UK Government reportedly hosted the second Africa Investment Conference on January 20th, 2022 to boost the nation’s economic cooperation with African countries and also enhance its role as the continent’s chosen investment partner for climate-friendly, green ventures. Anne-Marie Trevelyan, Secretary of State for International Trade, UK, had hosted the one-day virtual event, which focused on unlocking millions of pounds of new investments, particularly for clean energy sectors in the UK as well as across Africa. UK’s export credit agency, UK Export Finance, has significantly increased support for the African market over the last year, going from £600 million ($815 million) in 2018-19 to over £2.3 billion ($3.1 billion) in 2020-21. The Independent of London notes: “The UK is playing host to an African Investment Conference on Thursday, as it scrambles to retain influence on the continent, an investment battle ground for the world’s largest economies.”
Why oil-loving Ottawa must end its financing of fossil fuels
(Toronto Star, Ottawa, 17 January 2022) By Karen Hamilton, director of ECA Watch member Above Ground, a project of MakeWay Charitable Society that works to ensure companies based in Canada or supported by the Canadian state respect human rights and the environment wherever they operate. Fossil fuel subsidies will likely figure prominently in climate policy debates when Parliament resumes sitting later this month, with particular focus on how Ottawa will fulfil its recent pledge to end fossil fuel subsidies by 2023, two years earlier than originally promised. Equally deserving of public attention is the government’s commitment to phase out public financing of fossil fuels. This support, which the government does not consider a subsidy, has led to Canada being singled out on the world stage as one of the biggest boosters of fossil fuels. At last count, this support totalled $13.6 billion a year on average. Most of Canada’s fossil finance comes from Export Development Canada (EDC), which provides loans, insurance and other forms of support to companies in Canada and abroad. EDC has recently issued billions in loans for controversial projects such as the Trans Mountain and Coastal GasLink pipelines.
Campaigners say EU due diligence laws should apply to ECAs
(Global Trade Review, London 19 January 2022) A planned European Union law requiring large and businesses and financial institutions to conduct human rights and environmental due diligence should also apply to export credit agencies (ECAs), activists say. The initiative has strong support from the European Parliament but the Commission’s draft text has been held up twice by a regulatory oversight board that scrutinises proposed laws, according to MEPs. In December last year, four MEPs blamed the delays on lobbying by business groups in France and Denmark, and requested access to the board’s opinions on the draft proposals, which are not usually published until proposals are formally adopted. ECA Watch, a network of global non-government organisations who argue for ECA reform and transparency, sent a letter to the Commission in November urging ECAs to be in scope of the proposed law, noting” “Active obligations from ECAs [under the law] will effectively encourage a significant number of companies to fulfil their due diligence obligations and ensure that also ECAs themselves effectively comply with the human rights and environmental obligations of the member states on whose behalf they operate… Past experience shows that export credit guarantees are repeatedly granted for projects with serious adverse human rights and environmental consequences.” One of the letter’s authors, Heike Drillisch from German human rights and environment initiative CounterCurrent, says that while ECAs judge projects against standards such as the UN Guiding Principles on Business and Human Rights, they may not take an interest in the companies involved and whether they are respecting human rights. “We say that as state money is involved in export credit schemes, there should really be a heightened due diligence process in place and ECAs should be aware of not becoming complicit in human rights violations which occur in the project,” Drillisch tells GTR. Lawmakers want to capture non-EU firms too. A non-binding European Parliament resolution on the proposed law, adopted by 504 votes to 79, called on EU governments not to allow access to ECA support for companies that do not comply with the “objective” of the law. Asked how likely it is that public finance and insurance bodies such as ECAs will be in scope of the legislation, Linklaters associate James Marlow says to the extent that such organisations “are public bodies and extensions of member state governments, it is less likely that they will be directly captured by any regime… on mandatory due diligence”. However, Marlow tells GTR, to avoid reputational damage “it is possible that such bodies would be impacted indirectly as they or their government may look to align their policies and processes with stakeholder expectations and obligations” that apply to their counterparts in the private sector.
Russia’s Amur Gas Chemical Complex secures $9.1 bln in ECA & bank loans
(Reuters, Moscow, 8 December 2021) Russia’s Amur Gas Chemical Complex (Amur GCC) has secured $9.1 billion in loans maturing in 2035, Sibur, which co-owns the plant with China’s Sinopec, said in a statement on Wednesday. International banks will provide $2.6 billion for the Amur GCC with coverage from export credit agencies SACE of Italy and Germany’s Euler Hermes, Sibur said, while Chinese and Russian banks will issue the remaining $6.5 billion.
General Electric : Another milestone for Dogger Bank Wind Farm as it reaches financial close for third phase
(Market Screener, Annecy, 2 December 2021) General Electric announced that the Dogger Bank Wind Farm, between 130km and 190km off the north-east coast of England in the North Sea, reached financial close on debt financing for phase C, the third 1.2 GW phase. Upon completion, Dogger Bank is expected to be the world’s largest offshore wind farm with the total number of Haliade-X units to be installed at Dogger Bank reaching 277. GE Energy Financial Services (“GE EFS”) partnered with the co-sponsors to support insurance cover from Bpifrance, which insured a portion of the ECA debt financing. Separate debt facilities structured by the co-sponsors are supported by EKN, the Swedish export credit agency and Export Finance Norway (Eksfin), the Norwegian export credit agency. Dogger Bank C will connect to the grid at Lackenby England.
ECA Watch letter to European Commission re ECAs and corporate social governance
(ECA Watch, Amsterdam, 25 November 2021) The European Commission is working on a proposal for a directive on corporate social governance, which will include a regulation of the human rights and environmental due diligence (HREDD) obligations of corporations. We urge the proposed new regulation to become legally binding on the due diligence obligations of ECAs of member states, to make ECAs liable for its implementation and to implement export credit insurance as an enforcement mechanism for the legislation., This directive should oblige ECAs to monitor and follow HREDD policies and would ban companies, that have violated their duties under the directive, from ECA support.
Russia’s Arctic LNG 2 agrees loans worth 9.5 bln euros
(Reuters, Moscow, 30 November 2021) Russian gas producer Novatek (NVTK.MM) said on Tuesday its Arctic LNG 2 plant has signed loan agreements with foreign and Russian banks worth 9.5 billion euros ($10.8 billion), securing necessary external financing for the project. Earlier this year, Novatek shareholders approved external financing of $11 billion for the $21 billion Arctic project, which is expected to start production of liquefied natural gas in 2023. Novatek has had difficulty in securing funds from Europe, wary of political standoff with Russia as well as calls against tapping hydrocarbons in the Arctic amid efforts to tackle climate change. Chinese financial institutions, including the China Development Bank and the Export-Import Bank of China, signed credit facility agreements totalling 2.5 billion eurosfor up to 15 years. Financial institutions from the OECD member countries signed credit facility agreements totaling up to 2.5 billion euro. This includes the Japan Bank for International Cooperation (JBIC) and other lenders insured by export credit agencies. Sources told Reuters earlier this month that Italy’s SACE may insure a loan of around 500 million euros for Arctic LNG 2.
