ANNOUNCEMENT 31 May 2018
In May 2018, the German Export Credit Agency Euler Hermes Aktiengesellschaft announced providing a guarantee to support the German export of 4-stand aluminium tandem finish rolling line to Greece.
NUMBER OF INTERVENTIONS
AGA-Portal, Project information 2018, May: https://www.agaportal.de/en/exportkreditgarantien/praxis/projektinformationen
AGA-Portal, Main features of export credit guarantees:
AGA-Portal, further information concerning near cash terms: https://www.agaportal.de/en/exportkreditgarantien/grundlagen/bauleistungsdeckung
AGA-Portal, Foreign Content: https://www.agaportal.de/en/exportkreditgarantien/verfahren/auslaendische-zulieferungen
The export credit guarantee was announced in May 2018 and finances the export of 4-stand aluminium tandem finish rolling line to Greece. The benefitting German exporter is SMS group GmbH.
The German Export Credit Agency Euler Hermes Aktiengesellschaft only publishes value ranges for the projects it finances. The present project is in category 3. This category includes projects with a financing value between EUR 51 and 100 million. The GTA assumes the lower bound amount of the respective category, in this case 51 million EUR (approx. USD 59.5 million), as the conservative estimate of the project value.
The maturity of the loan will be 8.5 years. The financing institution is Commerzbank AG.
Germany provides Export Credit Guarantees and Untied Loan Guarantees to support German exports. The issuance of such guarantees is managed on "behalf of the Federal Republic of Germany by Euler Hermes Aktiengesellschaft".
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets and from foreign subsidiaries.
The German Export Credit Agency's approval process depends on the percentage of foreign-sourced goods included in the value of the export contract. Export contracts which include a foreign content value lower than 49% are approved without further investigation. However, if the export contract value contains more than 49% in foreign-sourced goods, an "Interministerial Committee will decide whether a transaction may be covered on the merits of the individual case." According to the agency, the criteria for this evaluation include the likely effect of the transaction on German employment, whether the location of the project's management remains in Germany, the domestic availability of foreign-sourced inputs, and the German exporter's capacity utilisation rate.