ECA-covered Financing Opportunities in the current environmen

What are Export Credit Agencies (ECAs)? State-owned “credit risk” insurer

ECA

Government-owned or -controlled entity supporting export business by providing insurance cover in connection with a commercial contract  Offering funding support (not valid for all ECAs)

Insurance  cover

For political and commercial risks for the lending bank as well as for the exporter  Generally in form of a guarantee (insurance policy character

ECA  premium


Charged for the insurance cover  
Payable upfront as a flat fee or financed under ECA facility Depending on country risk (according to OECD from 01 – 7), borrower risk category, currency, tenor of the loan and financing structure
ECA

ECA-covered products

Buyer’s credit and “Soft loans”:

 

Direct lending to a foreign buyer or through its relationship bank for financing  of defined deliveries and / or services from Exporter; Soft loans on the basis of concessional terms and conditions

 
Supplier’s credit:
 
ECA-covered deferred payment supply contracts including promissory notes/ bills of exchange  
Receivables  finance: ECA-covered without-recourse discounts of accounts receivables/invoices with tenors over 2 years (out of a deferred payment supply contract)
Receivables
 

Letter of Credit:

        

L/C Post financing under 
ECA guarantee  
L/C Confirmation under ECA guarantee 
L/C discount of deferred payment schemes under
ECA guarantee

Project Managment

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