New ship financing scheme

Do you need financing for a ferry, fishing boat, wellboat or express boat?

Export Credit Norway can now provide financing for Norwegian purchasers of vessels built at shipyards in Norway and intended for use in Norway. Qualifying purchases include fishing boats, ferries, wellboats, express boats and vessels intended for local shipping, as well as related equipment and services.

We are accepting and processing applications under the new ship financing scheme.

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What is on offer?
An entirely new loan and guarantee scheme for purchases of ships from Norwegian yards for use in Norway. The scheme was proposed by the Government in the autumn of 2017 and approved by the Storting (the Norwegian parliament) in December last year. The new scheme provides financing for Norwegian buyers of ships built at Norwegian yards and intended for use in Norway, and is administered by Export Credit Norway, which is the loan issuer and GIEK, which provides guarantees.

Export Credit Norway is authorised to make loans supported by either guarantees from banks with strong credit ratings and/or GIEK.

Why apply for a loan from Export Credit Norway?
Export Credit Norway provides loans on competitive market terms. Shipping companies gain access to competitive loan financing and banks can reduce their long-term loan exposure. Shipping companies can secure more flexible financing by combining a loan from Export Credit Norway with bank credit to fund repayments or extend the loan maturity period. A guarantee from GIEK reduces borrower reliance on bank credit, as GIEK takes on associated credit risk. Participation by GIEK is also beneficial for banks, as it reduces capital adequacy requirements.

Export Credit Norway has extensive ship financing experience. Please contact us to discuss your project.

When will the scheme be in place?

The ship financing scheme became fully operational from 25 June 2018. Please contact us if you would like to discuss your project. Read more about the public consultation here. (Norwegian only)

What terms are available?
The new ship financing scheme applies to ships of 100 gross tonnnes or above – as well as equipment and services for such vessels – which are wholly or partly built at shipyards in Norway for Norwegian purchasers.

  • Export Credit Norway may finance up to 80% of a shipyard contract. The minimum equity contribution is 20%.
  • The maximum loan period is 12 years. The loan may be repaid in equal half-yearly instalments, with the first instalment falling due six months after vessel delivery.
  • Different loan profiles can be achieved by combining a loan from Export Credit Norway with bank credit. This allows borrowers to secure both favourable financing terms and repayment flexibility.
  • Loans from Export Credit Norway must be guaranteed by GIEK and/or banks with strong credit ratings.

How can guarantee coverage be structured?
Guarantee coverage can be structured as follows:

  • A joint guarantee from GIEK and one or more partner banks. In such cases, GIEK may guarantee up to 75% of the loan, and the bank(s) 25%. Guarantee terms and coverage are assessed on a case-by-case basis.
  • Bank guarantee only.

The minimum bank credit rating is BBB. All loan applications must be sent to Export Credit Norway before any contract is signed with the shipyard.

What costs are involved?
Loan financing is available on market terms, with a variable interest rate and in different currencies. For loans in NOK, the margin takes the form of a fixed mark-up on 3-month or 6-month NIBOR. A fixed margin may be agreed for a period of between two and 12 years.

The above margin does not include the guarantee premium payable to involved banks and, in relevant cases, GIEK. This premium is market-based, and varies according to the repayment period and creditworthiness.

Finally, an up-front establishment fee and commitment fee are charged.

How do I apply for a loan?
The process can be divided into six steps. Read more here.

When can I apply?
You can apply for financing now. We are accepting and processing applications under the new ship financing scheme, but until the necessary legislative changes are made, we have to include a proviso that the proposed amendments take effect as proposed. Until all statutory changes become final, therefore, applicants for financing face a risk in this regard.

Who can apply?
Both purchasers (shipping companies) and sellers (shipyards) can apply for financing. Banks may also apply on behalf of their customers.

Please note the requirement that the loan application must be submitted to Export Credit Norway before any contract is signed with the shipyard.

How can I apply?
A digital application form will be made available on Export Credit Norway’s website by the end of April. In the meanwhile we accept applications by e-mail. Please contact one of our advisers for further information. Applications for guarantee coverage can be sent to GIEK and/or bank.

What is on offer?
An entirely new loan and guarantee scheme for purchases of ships from Norwegian yards for use in Norway. The scheme was proposed by the Government in the autumn of 2017 and approved by the Storting (the Norwegian parliament) in December last year. The new scheme provides financing for Norwegian buyers of ships built at Norwegian yards and intended for use in Norway, and is administered by Export Credit Norway, which is the loan issuer and GIEK, which provides guarantees.

Export Credit Norway is authorised to make loans supported by either guarantees from banks with strong credit ratings and/or GIEK.

Why apply for a loan from Export Credit Norway?
Export Credit Norway provides loans on competitive market terms. Shipping companies gain access to competitive loan financing and banks can reduce their long-term loan exposure. Shipping companies can secure more flexible financing by combining a loan from Export Credit Norway with bank credit to fund repayments or extend the loan maturity period. A guarantee from GIEK reduces borrower reliance on bank credit, as GIEK takes on associated credit risk. Participation by GIEK is also beneficial for banks, as it reduces capital adequacy requirements.

Export Credit Norway has extensive ship financing experience. Please contact us to discuss your project.

When will the scheme be in place?

The ship financing scheme became fully operational from 25 June 2018. Please contact us if you would like to discuss your project. Read more about the public consultation here. (Norwegian only)

What terms are available?
The new ship financing scheme applies to ships of 100 gross tonnnes or above – as well as equipment and services for such vessels – which are wholly or partly built at shipyards in Norway for Norwegian purchasers.

  • Export Credit Norway may finance up to 80% of a shipyard contract. The minimum equity contribution is 20%.
  • The maximum loan period is 12 years. The loan may be repaid in equal half-yearly instalments, with the first instalment falling due six months after vessel delivery.
  • Different loan profiles can be achieved by combining a loan from Export Credit Norway with bank credit. This allows borrowers to secure both favourable financing terms and repayment flexibility.
  • Loans from Export Credit Norway must be guaranteed by GIEK and/or banks with strong credit ratings.

How can guarantee coverage be structured?
Guarantee coverage can be structured as follows:

  • A joint guarantee from GIEK and one or more partner banks. In such cases, GIEK may guarantee up to 75% of the loan, and the bank(s) 25%. Guarantee terms and coverage are assessed on a case-by-case basis.
  • Bank guarantee only.

The minimum bank credit rating is BBB. All loan applications must be sent to Export Credit Norway before any contract is signed with the shipyard.

What costs are involved?
Loan financing is available on market terms, with a variable interest rate and in different currencies. For loans in NOK, the margin takes the form of a fixed mark-up on 3-month or 6-month NIBOR. A fixed margin may be agreed for a period of between two and 12 years.

The above margin does not include the guarantee premium payable to involved banks and, in relevant cases, GIEK. This premium is market-based, and varies according to the repayment period and creditworthiness.

Finally, an up-front establishment fee and commitment fee are charged.

How do I apply for a loan?
The process can be divided into six steps. Read more here.

When can I apply?
You can apply for financing now. We are accepting and processing applications under the new ship financing scheme, but until the necessary legislative changes are made, we have to include a proviso that the proposed amendments take effect as proposed. Until all statutory changes become final, therefore, applicants for financing face a risk in this regard.

Who can apply?
Both purchasers (shipping companies) and sellers (shipyards) can apply for financing. Banks may also apply on behalf of their customers.

Please note the requirement that the loan application must be submitted to Export Credit Norway before any contract is signed with the shipyard.

How can I apply?
A digital application form will be made available on Export Credit Norway’s website by the end of April. In the meanwhile we accept applications by e-mail. Please contact one of our advisers for further information. Applications for guarantee coverage can be sent to GIEK and/or bank.

Marie Sørli Fishing and Fish Farming
m: +47 970 44 332 m: +47 970 44 332
Olav Einar Rygg Director of Lending - Ocean Industries
m: +47 995 85 074 m: +47 995 85 074