Presentation at Oslo Militære Samfund, 31.5.2013Indo-Norwegian Joint Working Group MaritimeLars HasleEksportkreditt Norge AS

Competitive Financing from Norway

Export Credit Norway in brief

• Offers competitive long-term financing to large and small companies in Norway and abroad for purchases of capital goods and services from Norwegian exporters

• Stable, long-term source of financing

• Funding from the Norwegian government

• Manages the whole lending process, including guidance to export credit financing, loan application processing, documentation, disbursement and loan administration

Historic perspective: Norwegian export credit financing

Eksportfinans ASA has provided government- supported loans on behalf of the Ministry of Trade & Industry to the Norwegian export sector from 1978 to 2011.

Export Credit Norway fully operational as of July 2012 providing long-term financing with funding from the Norwegian government. 29 experienced employees recruited from Eksportfinans.

- Supporting the Norwegian Export industry for decades

1978 2011 2012 2013

On Nov 18, the government announced that it would assume responsibility fromEksportfinans for the offering of government-supported loans. A new state-owned entity will be set up for this purpose.

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20

40

60

80

100

120

Solid history of growth

Export-related loans (2001-10)BNOK

Export Credit Norway holds a loan portfolio of MUSD 5 135 as of Dec 31, 2012

Industry Number of applications

Maritime sector – ships 88

Maritime sector – ship equipment 62

Equipment for the oil and gas industry 31

Renewable energy /environmental tech. 71

Other industries 50

Total 302

Number of applications year-end 2012 – an indication of activity level:

Industry Balance MUSD

Maritime sector – ships 2 616

Maritime sector – ship equipment 50

Equipment for the oil and gas industry 2 445

Renewable energy /environmental tech. 21

Other industries 2

Total 5 135

• By year end 2013, total lending is estimated to US$ 10 billion

Strategic focus (2012-2015):

Competitive, accessible and efficient export financing, with increased focus on:

-Small and medium-sized enterprises -New knowledge and technology

Exportfinancing to India over the years

• Vessels to ONGC• Computers to ECIL, Hyderabad• Electronic landing systems, NAA• Hydropower projects• Telecomtechnology• Shipequipment• Vessel Traffic Management System• Cinevator to Bollywood

Utstyr FPSOFerge

Utstyr andre skipstyperVind

Utstyr fergeAnnen industri

Annet offshorefartøyKonstruksjon

Andre skipstyperUtstyr semi

Ankerhåndtering (AHTS)Utstyr drillskip

Forsyning (PSV)

0 5 10 15 20 25 30 35

Platform supply vessels (PSVs)

Other types of ships

Anchor handling tug

supply vessels (AHTSs)

Other offshore vessels

Construction shipsOther

26 %

6 %

8 %

2 %25 %

MNOK 7 094

20 %MNOK 5 790

2 %

28 582 MNOK

9 %

10

Equipment for drilling vessels

FPSO equipment

Number of loans within different segments

6

1

Loan portfolio: industrial sector as of 31.12 2012

Lending portfolioOffshore related activities account for the majority of the lending volume

3 %

Equipment for semi-submersible platforms

25 %

6 %

8 %

2 %25 %

20 %

9 %

Financing from Export Credit Norway

• All loans from Export Credit Norway must be secured by guarantee(s) from The Norwegian Guarantee Institute for Export Credits (GIEK) and/or acceptable bank(s)

• GIEK is a vital partner for Export Credit Norway. Secures political and commercial risks on loans

• Export Credit Norway co-operates with a wide range of both Norwegian and international banks

How does it work?

Foreign buyerNorwegian exporter

Guarantor(s)GIEK/Bank

The exporter sells the capital goods and/or services to the foreign buyer

The loan agreement is between the foreign buyer and Export Credit Norway

The guarantee agreement is between the foreign buyer and guarantor(s)

Export Credit Norway: funding and arranging the financing

Export Credit Norway

9

An attractive choice between two interest rate alternatives

• The rate is adjusted by OECD on the 15th of every month (www.oecd.org)

• Export Credit Norway quotes CIRR rate before contract award – a free-of-charge fixed interest rate option

• All OECD currencies available

• Priced in accordance with prevailing market conditions

• Most convertible currencies available

• Compliance with state aid regulations

CIRR loan (Commercial Interest

Reference Rates)

CIRR qualified market loan

The interest rate choice may remain open until shortly before final drawdown of the loan. At that point, the borrower may compare the fixed CIRR rate to the marketbased interest rate and opt for the more attractive of the two

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An attractive interest rate option: CIRR rates currently at historically low levels Pre-contract CIRR RATES 15.05 -14.06.2013

< 5 y 5.5 – 8.5 y 9-12 yUSD 1.54 1.91 2.35EUR 1.39 1.78 2.22GBP 1.51 1.93 2.39NOK 2.53 2.53 2.53

All loans must comply with the OECDArrangement on Officially Supported Export Credits

• Export Credit Norway offers financing for up to 85 % of the contract value

• Norwegian content must account for at least 30 % of the contract amount*

• Deliveries from subcontractors in the project country (“local content”) cannot exceed 30 % of the sum of Norwegian and third country content

• The repayment period is generally up to 8.5 years (for ships up to 12 years, and for renewable energy projects up to 18 years)

• The Norwegian exporter or prospective foreign borrower must apply for export financing before a legally valid and binding contract is entered into

• All loans must be secured by guarantee(s) from The Norwegian Guarantee Institute for Export Credits (GIEK) and/or acceptable financial institutions

*Deliveries from companies based in Norway or companies abroad under Norwegian majority control generally qualify as Norwegian content

The application process

Exporter or buyer informs Export Credit Norway about the project and applies for financing before a legally valid and binding contract is entered into

1 Exporter and buyer execute commercial contract

2Exporter or buyer applies for risk coverage from GIEK and / or acceptable bank(s)

3GIEK and/or commercial bank issue loan guarantee(s)

4 Export Credit Norway executes loan agreement with buyer and disburses the loan

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What should the application include?

• Name of buyer, borrower and supplier

• Brief description of project, e.g. type of delivery and time of delivery, environmental issues

• Estimated contract value

• Estimated Norwegian content in the contract

• Type of loan, amount, currencies, tenor

• Guarantor information (if available)

Competitive financing from Norway:

• Attractive pricing

• Access to long-term financing in all market conditions

• Flexibility within the framework

• High capacity for more projects moving forward

• Export Credit Norway must receive the loan application before the export contract has been signed

Please contact usExport Credit Norway AS Hieronymus Heyerdahls gate 1, entrance from Otto Sverdrups gate

P.O. Box 1315 Vika, 0112 Oslo, Norway.

Tel: (+47) 22 31 35 00

www.eksportkreditt.no