“China is a global trade power, and a very important trading partner for Norway. The fact that Norwegian exporters both have access to the Chinese market and can offer financing is providing considerable new opportunities for the Norwegian export industry,” says Minister of Trade and Industry Torbjørn Røe Isaksen.
The financing referred to by the minister is provided by Export Credit Norway and GIEK.
Enormous potential for exports to China
Otto Søberg, Export Credit Norway
“Our task is to help Norwegian businesses to succeed abroad. China clearly offers enormous export potential, and we are pleased to provide financing solutions adapted to local regulatory requirements,” says Export Credit Norway CEO Otto Søberg.
The contract provided for a seller’s guarantee from Alfsen og Gunderson to Anhui TPY, which Export Credit Norway has now taken over.
An example to be followed
“I am pleased that we have found a solution that appears to have been well received by the Chinese partner. I hope that more export contracts materialise going forward, and that trade between our two nations will continue to expand,” says GIEK CEO Wenche Nistad.
This hope is one that Oscar Olsen, at Alfsen og Gunderson, wholeheartedly shares.
“We have delivered to Chinese customers previously, but the involvement of the Norwegian State through loans and guarantees is opening new doors. We have already received several enquiries from China thanks to this contract,” he relates.
Financing is an advantage
Norwegian businesses that wish to export to Asia have a competitive advantage of which few are aware. Since customers in China may find it difficult to secure necessary financing themselves, it is highly advantageous when a seller can arrange credit.
“A Norwegian exporter who can also offer a Chinese customer financing obviously has a strong competitive advantage,” says Wenche Nistad. She also points out that the transaction must include value creation in Norway, and that the borrower must be creditworthy.
Export Credit Norway and GIEK not only provide financial assistance, but also advise Norwegian businesses interested in expanding internationally.
“We are happy to advise on how to win contracts in foreign markets, and can make financing arrangements for Chinese customers that comply with local legislation and meet the particular needs of local businesses,” explains Otto Søberg. He has two simple pieces of advice for exporters:
- Ask potential customers in China whether they require financing. This may be a strong sales argument.
- Contact Export Credit Norway early on so that a tailored solution can be developed for your bid in China.
Published 04. Jun 2018