ANNOUNCEMENT 30 Apr 2021
The German Export Credit Agency Euler Hermes Aktiengesellschaft provided a guarantee to support the construction of a biomass power plant in Turkey.
NUMBER OF INTERVENTIONS
AGA-Portal, Project Information April 2021: https://www.agaportal.de/en/exportkreditgarantien/praxis/projektinformationen
AGA-Portal, Main features of export credit guarantees:
AGA-Portal, Foreign Content: https://www.agaportal.de/en/exportkreditgarantien/verfahren/auslaendische-zulieferungen
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.
In April 2021, the German Export Credit Agency Euler Hermes Aktiengesellschaft granted an export credit guarantee. The guarantee supports Intec Engineering GmbH's construction of a biomass power plant.
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, EUR 16 million (approx. USD 19.3 million), as the conservative estimate of the project value. The maturity of the loan is 7 years. The financing institution is ODDO BHF 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.