About the product

Eksfin can offer financing to:

• international and Norwegian shipping companies that order vessels from Norwegian shipyards
• international and Norwegian shipping companies that order vessels from foreign shipyards with Norwegian ship equipment

Eksfin offers ship financing based on the value of shipbuilding contracts or the total value of Norwegian deliveries to a vessel (parts of ship financing). We offer fixed interest (CIRR) or variable interest rates in cooperation with commercial banks or equivalent financial institutions. Only variable interest rates are offered for ships built at Norwegian shipyards for Norwegian shipping companies for domestic use.

Conditions and structure

Eksfin can participate in a variety of financing structures by:

• offering loans where Eksfin bears the credit risk for the shipping company
• providing guarantees with credit risk attached to the shipping company for loans from another lender
• offering loans where a Norwegian or foreign bank guarantees the entire loan

Generally, at least 30% of the contract’s (or contracts’) content must be Norwegian, but a lower percentage of Norwegian content may qualify for financing upon assessment to determine whether the contract promotes Norwegian exports and value creation in a broader sense.

Financing and coverage ratio

Eksfin can offer financing for up to 80–85% of the value of the shipbuilding contract if built in Norway and up to 100% of the value of the Norwegian equipment contract if built abroad. The maximum credit risk coverage is 90% of the loan amount, but normally 50–70% based on a credit assessment and risk sharing with a bank. Conditions and structure are assessed and decided on a case-by-case basis.

Eksfin shares risk with banks on the same conditions and requires agreements for loans and guarantees in line with market practices. The application of equivalent conditions means that Eksfin benefits from the same assurances as the bank (ship mortgage, etc.) at the same price.

How to apply?

Eksfin must receive a loan application before the export contract is signed. Both the shipowner, bank or shipyard can apply on behalf of the shipowner. This requirement does not apply to guarantees. Nonetheless, we recommend that the exporter, buyer or bank contacts Eksfin at an early stage to discuss the need for financing The application is non-binding and there is no fee.

Interests and maturities for ship financing

• View interests options.
• Eksfin can offer up to 12-year or 15-year maturities for fixed interest loans to foreign shipowners or Norwegian shipowners with vessels operating in domestic shipping or for earnings from activities outside the Norwegian baseline:
  • Up to 12 years with the right to set a fixed interest rate (CIRR) on the export contract dateUp to 15 years if the fixed interest rate (CIRR) is set when the loan is paid out.
• A decision regarding the above two options must be taken when the shipowner signs the contract with the Norwegian shipyard.
• Eksfin can offer up to a 12-year maturity for loans with a variable interest rate to shipowners in Norway who build ships at Norwegian shipyards for use in Norway.
• Ship financing can be paid out during the building period provided that a satisfactory advance payment guarantee exists from the shipyard’s bank.
• The prerequisite for ship financing is normally a serial loan with quarterly instalments.

Sustainability

Eksfin places considerable emphasis on shipbuilding, shipping operations and ship scrapping being conducted in an appropriate manner. In a ship financing transaction, we will assess the risk attached to the environment and social conditions through the ship’s lifetime, including the building phase. During this work, we will consult international standards and assess the shipyard and shipping company’s own guidelines based on such standards as a benchmark. Learn more about our work in sustainability in relation to ship financing.

Read more about the application prosess here