Northern lights shine bright

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01 July 2005

Supporting a manufacturing base can take many forms. The Nordic export credit agencies recognize the importance of providing strong backing to equipment exporters, and this is paying good dividends. Jonathan Bell examines the scene.

Indicative of the focus and support levelled at Nordic capital goods exports by export credit agencies in the region is the a265 million ($321 million) loan backed by Finnvera, the Finnish export credit agency, presently in the market for exports of telecommunications equipment to Russia's MegaFon. The transaction, with a six-year tenor, was arranged by Citigroup and ING Bank (Trade Finance, June 2005, p20). In a fast-changing world with decreased manufacturing and exports from many Western European countries, the Nordic telecoms manufacturers stand out like the aurora borealis. Rightly so, the region's ECAs are highly supportive.

This new export finance for MegaFon will finance equipment from Finland's Nokia – and the company is understood to have negotiated the release of $300 million in loan deposits for immediate use. Separate to this, Citigroup and ING, together with six other banks have also arranged a three-year $220 million commercial loan for MegaFon.

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