swedish export credit corporation. 2 kingdom of sweden population: 10 million surface:450 000 km 2...
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Swedish Export Credit Corporation
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Kingdom of Sweden
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
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Economy of Sweden
Source: SCB, Worldbank, Bloomberg, Macrobond
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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*
Unemployment (May 2013): 8.2%
Inflation rate (May 2013): -0,2%
Current Repo Rate: 1.00%
* USD/SEK per 31 December 2012 6.5156
5 year CDS spreads
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Swedish export – 50 % of GDP
Source: SCB, Bloomberg, SEK4
Key export goodsTrade balance
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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Well-known exporters
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The Swedish Export Credit System
EKN
SEK
Funded system
www.ekn.se
Credit periodDeliveryProduction
Payments
Contract guarantees
Working capital
Sales process/Negotiation
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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 basisfor 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
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The Swedish Export Credits Guarantee Board – guarantees
SEK – financier
Bank – arranger
Exporter– generates the deal
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Sustainable financing – a high priority for SEK
SEK supports Global compacts 10 principles
“OECD Common approaches” for evaluating projects Financing of
cleantech exports
Sustainability risk assessments is an integreated part of SEK credit process
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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)
• Diversification of funding
• Exempt from WHT in certain jurisdictions
• No ancillary business
• Expertise on the Swedish ECA system
Benefits for us:
• Global reach
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Export Finance
• Funding partner Refinancing/assignment of the transaction Standardized/simplified documentation No participation in borrower credit risk No participation in documentation risk
• Co-arranger/co-risk taker 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
SEK supports the transaction irrespective of bankand remains neutral until a bank has been mandated
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• Market rates
Normally floating Can be fixed when all cash-flows have been defined
• CIRR rates
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
Interest rate options
Option to choose between CIRR and floating market rate up to signing of the loan agreement.
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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 SebeliusDirectorRegional Head of Middle East & Africa
+46 8 613 84 61