Guidelines for application for export credit Guarantee and fun ... - EKF

at the latest. However, <strong>EKF</strong> can offer to commit during the early stages of the negotiations by issuing afinal guarantee be<strong>for</strong>e the actual risk period commences. Contact <strong>EKF</strong> <strong>for</strong> further in<strong>for</strong>mation regarding thespecific conditions.Re item 4: The transactionTerms of paymentState the commercial contract´s terms of payment.Description of the delivery of goods/project:Describe the entire project including sector, size <strong>and</strong> purpose. In case of delivery of goods only, pleasespecify volume <strong>and</strong> amount. In case the delivery is part of a major project, all the involved parties <strong>and</strong> their<strong>fun</strong>ctions have to be described.Description of major sub-supplies:In case the applicant is the main supplier, the sub-supplies <strong>and</strong> sub-suppliers must be described.Local costs in the contract:All the products which have been manufactured in buyer´s country <strong>and</strong> all the services delivered by acompany registered in the buyer country <strong>and</strong>/or are paid to the buyer country.Re item 5: Danish economic interestThe following list contains the elements which <strong>for</strong>m part of the evaluation of Danish economic interest.The list is not exhaustive:> > Goods <strong>and</strong> equipment produced in Denmark> > Dividends, interests, licenses <strong>and</strong> royalties from the transaction> > Reduced costs> > Good <strong>and</strong> equipment produced by Danish owned associated companies in third countries> > The significance of the transaction to ensuring internationally competitive terms <strong>for</strong> the company inquestion> > That a long-term positive effect can be obtained <strong>for</strong> other Danish companies> > Participation from Danish sponsors, financial institutes <strong>and</strong> similar.> > Other positive effect on the Danish society including securing jobs/job opportunities in Denmark.Re item 6: In<strong>for</strong>mation on buyerExperience with the buyer:Describe the applicant´s <strong>and</strong> the <strong>export</strong>er´s experience with the buyer up till now.Re item 7: The environmental <strong>and</strong> social impacts of the delivery/the projectAccording to international regulations <strong>EKF</strong> is committed to evaluate the potential negative environmental<strong>and</strong> social impacts of all transactions. Environmental <strong>and</strong> social impacts include pollution of air, water,ground, waste, noise pollution as well as consumption of resources (such as water, ground, energy <strong>and</strong> rawmaterials). The evaluation also includes negative impact on cultural <strong>and</strong> historical values <strong>and</strong> similar as wellas the possible impact on the population, the society <strong>and</strong> vulnerable groups.2

In many cases the evaluation of the negative impacts can be based of the in<strong>for</strong>mation in the <strong>application</strong><strong>for</strong>m. In larger <strong>and</strong> more complex business transactions, further in<strong>for</strong>mation will often be required <strong>and</strong>/orfurther investigations will have to be conducted. In such cases, the applicant will be contacted by <strong>EKF</strong>.Re item 8: Time schedulePlease specify the periods in months, preferably seen in relation to the expected date of contract.Pre-shipment period/Processing period:The period from the signing of the supplier contract to the date of the first shipment.Date of shipment(s):Specify the date of shipment(s). The number of partial shipments must be stated.Installation/assembly:The period of installation/assembly (at the buyer´s).Commissioning:Is defined as completion of, <strong>for</strong> instance, installation in such a manner that the delivery/project is ready <strong>for</strong>use by the buyer. Commissioning can only be approved as the <strong>credit</strong> period’s start date if the <strong>export</strong>er isin charge of commissioning. <strong>EKF</strong> is not able to approve a date <strong>for</strong> the commencement of the <strong>credit</strong> periodwhich is later than the date of commissioning.Re item 9: Payment to <strong>export</strong>er (Disbursement under the loan agreement)Flow of payments:State the conditions under which the <strong>export</strong>er receives payment during the project, including a specificationof the documents which will initiate the payments.Re item 10: Borrower/guarantorGuarantor, if applicable:State the names <strong>and</strong> addresses of other parties who guarantee unconditionally <strong>and</strong> irrevocably <strong>for</strong> therepayment of the loan (i.e. the bank or the buyer´s parent company).Re item 11: Loan agreementFinancing cost, if applicable:Interest during the disbursement period, bank charges <strong>and</strong> 100% of the premium to <strong>EKF</strong> can also befinanced as part of the <strong>export</strong> <strong>credit</strong>. If additional financing is required, please state the interest <strong>and</strong> bankcharges under the disbursement period.Disbursement period:The period starts from the date of the first shipment or upon the first request <strong>for</strong> payment <strong>and</strong> ends at thestart of the <strong>credit</strong> period.Credit period:The length of <strong>credit</strong> granted (number of years or months). The period begins at the end of the disbursementperiod <strong>and</strong> terminates when the final instalment is due.Interest rate <strong>and</strong> method of calculation:State the expected interest <strong>for</strong> the <strong>credit</strong>/loan (CIBOR, LIBOR etc.) as well as the method of calculation.Floating rates are always used in connection with loans.3

Credit period starts from:State the events, i.e. delivery or commissioning which initiate the commencement of the <strong>credit</strong> period.Re item 12: Declaration of non-briberyLike other <strong>export</strong> <strong>credit</strong> agencies within the OECD, <strong>EKF</strong> is subject to an obligation to obtain a declarationthat illegal bribery has not <strong>and</strong> will not be engaged in as a contravention of the OECD Convention onCombating Bribery <strong>and</strong> § 122 of the Danish Criminal Code.It is a condition <strong>for</strong> <strong>EKF</strong>’s guarantee that the lender as well as the <strong>export</strong>er (supplier) duly sign, <strong>and</strong> submitto <strong>EKF</strong>, an Exporter’s Declaration of Non-Bribery.The declaration of non-bribery is an integrated part of the <strong>application</strong> <strong>for</strong>m submitted to <strong>EKF</strong> <strong>and</strong> theDanish <strong>export</strong> lending scheme which is hereby signed by the applicant. Be<strong>for</strong>e the guarantee is issued, the<strong>export</strong>er will have to sign a separate declaration which is to be <strong>for</strong>warded to <strong>EKF</strong> be<strong>for</strong>e the guarantee isfinally issued.Re item 13: Openness PolicyAs <strong>EKF</strong> is a state-owned institution, it is important that the way <strong>EKF</strong> fulfils our mission <strong>and</strong> administersthe money provided by the Danish state <strong>for</strong> this purpose is transparent to the Danish society. There<strong>for</strong>e,<strong>EKF</strong> wishes to offer all interested parties the possibility of acquainting themselves with <strong>EKF</strong>´s business <strong>and</strong>economy in a manner which is clear <strong>and</strong> easy to underst<strong>and</strong>. We do so by disclosing a series of in<strong>for</strong>mationregarding the business transactions that we participate in.The Openness Policy entails that it is a condition <strong>for</strong> issuing a guarantee that the Lender as well as theExporter (Seller) submits a duly signed declaration to <strong>EKF</strong> regarding disclosure. <strong>EKF</strong>´s Openness Policybecomes effective from 1 July 2010. Applications concerning projects <strong>and</strong> business transactions submittedprior to this date will not be covered by the Openness Policy.<strong>EKF</strong>´s Openness Policy is an integrated part of the <strong>application</strong> <strong>for</strong>m to be submitted to <strong>EKF</strong> which is thussigned by the applicant. The Exporter will have to sign a separate declaration upon the issue of the guaranteeat the latest, a declaration which will be <strong>for</strong>warded by <strong>EKF</strong> be<strong>for</strong>e a guarantee is finally issued.Re: SignatureThe <strong>application</strong> must be duly signed by the applicant. The applicant is responsible <strong>for</strong> the accuracy of allin<strong>for</strong>mation in the <strong>application</strong>, including in<strong>for</strong>mation about the underlying transaction.<strong>EKF</strong> acknowledges that in some cases, the in<strong>for</strong>mation received may be of a preliminary nature.4