Debt ECA Equity Financing

Specialists in securing foreign debt, ECA, and equity financing for your project needs.

Debt Finance Experts

Our team of finance experts specializes in securing various types of financing from foreign sources to support your project needs. Whether you require debt, export credit agency (ECA), or equity finance, we have the knowledge and experience to help you obtain the funding necessary for your business endeavors.

With a deep understanding of international finance and a vast network of foreign investors and lenders, we can tailor a financing solution that meets your specific requirements and objectives. From negotiating favorable terms to navigating complex international regulations, we are committed to finding the right financing options to fuel the success of your projects.

What are export credit agencies?

Export Credit Agencies (ECAs) are institutions whose principal objective is to promote exports from their own country. ECAs may be private companies or quasi-governmental institutions, and their precise status varies from country to country.

Who are they?

There are innumerable ECAs, some of whom we have listed below (G7 countries):

United Kingdom ECGD UK Export Finance (formerly Export Credits Guarantee Department)

France COFACE Compagnie Française d’Assurance pour le Commerce Extérieur

Germany Hermes Euler Hermes Kreditversicherungs-AG

United States of America EXIM Export-Import Bank of the United States

Italy SACE Istituto per i Servizi Assicurativi del Credito all'Esportazione

Japan JBIC Japan Bank for International Cooperation

Canada EDC Export Development Corporation

What do they do?

ECAs can offer both 'tied' financing (i.e. financing linked to a supply of goods or services from the ECA's country) and 'untied' financing, which is not linked in this way. ECAs provide a range of support for importers/exporters which typically covers the following:

• Buyer credit – providing financing support to importers to allow them to purchase the exported goods/services (an ECA may itself provide finance direct to the buyer, or may provide a guarantee in favour of commercial lenders that are financing the buyer – see "Typical financing structure" below)

• Supplier credit – providing financing support to exporters (in this case the export contract would provide for deferred payment through the issue and discounting of bills of exchange or promissory notes purchased by the exporter's bank, which an ECA may purchase or guarantee)

• Political risk cover (insurance)

• Interest rate subsidy

Export credit support addresses three key issues:

Deferred payment – allowing a buyer to defer its payment to the supplier for the relevant goods/services.

Credit risk – protecting the supplier (and lenders) against the risk of non-payment owing to the insolvency or default of the buyer.

Political risk – protecting the supplier (and lenders) against the risk of non-payment as a result of the occurrence of certain political risks.

Outline of financial terms and conditions

The key conditions set out in the Consensus for officially supported export credits can be summarised as follows:

• At least 15% of the contract is to be covered by an up-front cash payment

• Maximum repayment term is:

• Category I – 5 years (or 8.5 years on special dispensation)

• Category II – 10 years • Non-nuclear power – 12 years