ANZ

Services

Export Finance involves the provision of financing by a bank or financial institution in support of an export of capital goods equipment and services or of a turnkey project to a buyer, often located in a developing country. A financing will normally be backed by a guarantee or insurance policy issued by the official Export Credit Agency (ECA) of the country from which the equipment is sourced.

Loans made available to borrowers which, benefit from ECA support, are required to conform to OECD guidelines as set out in the Arrangement on Guidelines for Officially Supported Export Credits (the ‘Consensus’). Financings structured according to Consensus regulations may also benefit from officially supported fixed rate funding, with rates set according to the officially set Commercial Interest Reference Rates (CIRRs).

Locations

Primary contact with each ECA is through the following offices:

London – ECGD, Scandinavian ECAs, SACE and CESCE
Paris – Coface, OND
Frankfurt – Hermes, ERG, OeKB
New York – US EXIM

ANZ’s Export Finance specialists focus on advising, structuring and arranging:

• ECA supported transactions (buyer credits, supplier credits, lines of credit) including ECA Project Finance and investment insurance products
• Multi-sourced ECA supported transactions
• Other elements of financial package eg commercial “top-up” lending, bilateral / multilateral agency funding, local lending, Islamic Financing and offset obligations, etc
• Other project-related services, e.g. bonding and local accounts

ANZ is able to arrange finance for buyers/projects located in a wide spectrum of countries, with the principal focus on the Middle East, South Asia, South East Asia and Latin America.

Export Finance: Services

Buyer Credit

• Loan provided directly to foreign buyer
• Usually appropriate for larger transactions (minimum c. £1 million loan value)
• Typically, complex drawdowns; capital goods supply; and/or services

Supplier Credit

• Financing provided by supplier to buyer, generally evidenced by Promissory Notes or Bills of Exchange, and re-financed by a bank or financial institution
• Generally (but not always) smaller value transactions without complex drawdown

Line of Credit

• Appropriate for single buyer/borrower wishing to place a number of contracts with various suppliers over period of time

Project Finance

• Looks to economics of the Project to service the debt, rather than financial strength of borrower/guarantor

Political Risk Insurance

• Public and private sector providers
• Cover for debt and equity;
• Not tied to supply sourcing if provided by private sector (nor, in some cases, by public sector)