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ANNOUNCEMENT 30 Sep 2019
The German Export Credit Agency Euler Hermes Aktiengesellschaft provided a guarantee to support a German company's construction of a wind farm in Turkey.
NUMBER OF INTERVENTIONS
2
SOURCE
AGA-Portal, Project information August 2019: https://www.agaportal.de/en/exportkreditgarantien/praxis/projektinformationen
AGA-Portal, Main features of export credit guarantees:
https://www.agaportal.de/en/exportkreditgarantien/grundlagen/grundzuege
AGA-Portal: https://www.agaportal.de/en
AGA-Portal, Foreign Content: https://www.agaportal.de/en/exportkreditgarantien/verfahren/auslaendische-zulieferungen
In September 2019, the German Export Credit Agency Euler Hermes Aktiengesellschaft granted an export credit guarantee. The guarantee supports the German company Nordex Energy GmbH's construction of a wind farm in Turkey.
The German Export Credit Agency Euler Hermes Aktiengesellschaft only publishes value ranges for the projects it finances. The present project is in category 2. This category includes projects with a financing value between EUR 16 and 50 million. The GTA assumes the lower bound amount of the respective category, in this case, 16 million EUR (approx. USD 17.4 million), as the conservative estimate of the project value. The maturity of the loan is 10 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 or 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.