Example of retrofit equipment: «scrubber», ballast water cleaning systems, new coating systems, and other depreciable equipment.
CREDIT FRAME AGREEMENT
The Credit Frame Agreement will cover the total financing giving access to separate single loans on certain conditions, such as duration of the agreement, credit frame and certain conditions that have to be fulfilled before disbursement of the respective single loans.
The separate loans
will include specific conditions for the loan such as:
- Loan amount
- Interest rates, fees, repayment period etc.
- Guarantor(s) and agent for the loan
Up to 85 % of contract value for Norwegian equpment
5-8½ years per single loans, depending on amount and type of investment.
CIRR-rate or Market based interest rate (IBOR)
Norwegian content must account for at least 30% of the amount of Norwegian supplier contracts. The exporter must confirm the Norwegian export and payment through an Exporter`s statement document.
Please note that the ship owner is free to cancel the
offer for financing without cost.
REMEMBER TO APPLY FOR A LOAN BEFORE A COMMERCIAL CONTRACT IS SIGNED
GIEK GUARANTEE FRAME AGREEMENT
GIEK will make a credit assessment of the customer.
The loans will be structured as single loans under a guarantee frame agreement and disbursed annually, in arrears, based on the total Norwegian equipment purchased each year (reimbursement structure).
GIEK can accept up to 85 % financing of the export contracts’ value and can cover up to 90 % of the loan, however the most likely coverage would be 70-80 %.
The residual risk (i.e. 20-30 %) to be covered by a commercial bank.
GIEK may accept unsecured financing, depending on the financial strength of the customer.
A ship owner has a fleet of 50 vessels
Retrofit equipment will be installed by the regular «docking» every 5th year.
- The retrofit equipment per vessel have a cost of USD 1 m.
- Total investment for the fleet: USD 50m.
- The ship owner applies for export financing before a contract with the Norwegian exporter is signed.
- The ship owner enters into a contract for buying Retrofit equipment from Norwegian exporter(s).
- The ship owner enters into a Credit Frame Agreement with Export Credit Norway with a total loan amount up to USD 42.5m (85 % of USD 50 m).
- Duration: Till last vessel of the fleet has been to «docking» in 2022.
The table below is an illustration of the example: