The Norwegian Export Credit Guarantee Agency GIEK has quadrupled its offshore wind portfolio to NOK 4.2bn (USD 453m) since the tail end of last year, and is ready to provide a further boost for local suppliers to secure more offshore wind business internationally.
GIEK, a financial institution working on behalf of the Norwegian state to secure financing and export contracts for Norwegian companies, said Tuesday that, with ample capacity and competitive rates, it is actively seeking new business worldwide as part of its mandate to bolster the participation of Norwegian exporters in a burgeoning but capital-intensive sector.
GIEK, which manages an international portfolio of export-related guarantees that today totals USD 8.5bn, has traditionally been focused on oil and gas and shipbuilding followed by fisheries and aquaculture.
It has recently extended its mission to include offshore wind, and more generally banks and investors participating in large international energy-infrastructure projects.
GIEK chief executive Wenche Nistad: “Offshore wind is really gaining momentum and is a great example of how we can actively help Norwegian industry re-channel by opening the door to new markets for existing wind expertise and other companies looking to extend their reach into green technology.”
“By choosing a Norwegian supplier you can count on receiving good financing from GIEK in support of the purchase,” Nistad says, highlighting recent contracts won by the likes of Nexans Norway, Aibel, and Fred Olsen Windcarrier.
GIEK says its core offering are AAA-rated guarantees for long-term loan financing, as well as contractual delivery guarantees that protect both buyers and suppliers in case of default.
“Norway can offer triple-A-rated instruments, which are a key tool in reducing the cost of project financing,” says Nistad. “We work together with commercial banks to share project risk, so loans will be repaid.” Customers pay risk premium on competitive commercial terms, GIEK says.
“We have a lot of experience, especially from offshore and shipping, in participating in complex international projects involving many players and financing institutions. We’re bringing that expertise into the process for offshore wind,” says Nistad. “We’re easy to work with, solution-oriented and flexible. And I’m proud to say our existing partners are very satisfied,” she adds.
With oil & gas activities decreasing, Norwegian supplier turn to offshore wind
Per GEIK, offshore wind promises to be a winner for Norwegian suppliers looking to maximize new opportunities in a changing energy landscape – and as activity in offshore oil and gas is projected to slacken after 2020 amid a lack of big new finds.
GIEK said it had blazed a trail in the sector by providing service delivery guarantees totaling NOK 1.3bn towards the end of last year that enabled Norwegian supplier…