Transcript Slide 1

Swedish Export Credit Corporation
Kingdom of Sweden
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Population:
10 million
Surface:
450 000 km2
Capital:
Stockholm
Language:
Swedish, but English widely spoken
Political system:
Parliamentary democracy
Status in Europe:
Inside EU, outside Euro
Currency:
Swedish Krona
Economy of Sweden
Public debt to GDP
Facts
Rating:
AAA/Aaa/Aaa
GDP growth (Q1 2013), YoY:
1.7%
GDP:
USD 545.7 bn*
GDP per capita:
USD 57 322*
5 year CDS spreads
Unemployment (May 2013):
8.2%
Inflation rate (May 2013):
-0,2%
Current Repo Rate:
1.00%
* USD/SEK per 31 December 2012 6.5156
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Source: SCB, Worldbank, Bloomberg, Macrobond
Swedish export – 50 % of GDP
Trade balance
Key export goods
Machinery 16%
Auto 15%
IT & telecom 12%
Consumer goods 12%
Materials 11%
Energy 10%
Pulp & paper 10%
Health care 7%
Construction 7%
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Source: SCB, Bloomberg, SEK
Well-known exporters
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The Swedish Export Credit System
EKN
SEK
Funded system
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www.ekn.se
Sales
process
/Negotiation
Production
Working capital
Delivery
Credit period
Payments
Contract guarantees
SEK – Swedish Export Credit Corporation
established by the Parliament and 100%
owned by the Kingdom of Sweden
For more than 50 years, SEK has been the
financial partner to the backbone of the
Swedish economy – the export industry
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Our mission is….
…to secure access to financial solutions on a commercial basis
for the Swedish export economy
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We promote Swedish
export industry
worldwide by…
… financing buyers of Swedish goods and services
… financing international investments by Swedish companies
in Sweden by…
… lending to companies involved in export related activities
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SEK in short
• Export finance
• Administers the state-supported export credit
system,
the S-system, on behalf of the government
• Corporate lending
• Project finance
• Customer finance
• Trade finance
• Our offer is available in all major currencies
and selected local currencies
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The Swedish export credit system
Exporter
– generates
the deal
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Bank
– arranger
The Swedish Export
Credits Guarantee
Board – guarantees
SEK
– financier
Sustainable financing – a high priority for SEK
SEK supports Global
compacts 10 principles
“OECD Common
approaches” for
evaluating projects
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Sustainability risk
assessments is an
integreated part of
SEK credit process
Financing of
cleantech exports
Striving for co-operation
Benefits for you:
• Access to substantial financing amounts
• Access to long tenors
• Signal value
• Competitive interest rates
- Market rates, floating and fixed
- CIRR (Commercial Interest Reference Rate)
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Diversification of funding
Exempt from WHT in certain jurisdictions
No ancillary business
Expertise on the Swedish ECA system
Benefits for us:
• Global reach
Export Finance
• Funding partner
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Refinancing/assignment of the transaction
Standardized/simplified documentation
No participation in borrower credit risk
No participation in documentation risk
• Co-arranger/co-risk taker
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Participation on normal and equal market practice terms
Participation in borrower credit risk
Participation in documentation risk
Funding of whole or part of the transaction
• On lending
- Framework agreements with local banks
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SEK supports the transaction irrespective of bank
and remains neutral until a bank has been mandated
Interest rate options
• Market rates
- Normally floating
- Can be fixed when all cash-flows have been defined
• CIRR rates
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Apply before signing of the commercial contract
No cost in connection with application
Possible subsidy compared to market rates
Administration fee of 25 bps p.a. to agent bank
The Swedish CIRR system is funded
Option to choose between CIRR and floating market
rate up to signing of the loan agreement.
SEK in the Middle East
150 Projects financed
13 offers outstanding today of which
6 in Iraq
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Contact Details – SEK
André Sebelius
Director
Regional Head of Middle East & Africa
[email protected]
+46 8 613 84 61
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