Shipping finance—Export Credit Agency financing
Produced in partnership with Tony Rice of HFW and Gudmund Bernitz of HFW

The following Banking & Finance practice note produced in partnership with Tony Rice of HFW and Gudmund Bernitz of HFW provides comprehensive and up to date legal information covering:

  • Shipping finance—Export Credit Agency financing
  • What are Export Credit Agencies?
  • Which ECAs are active in shipping finance?
  • Types of ECA support
  • Direct credit
  • Guarantees
  • Credit insurance
  • Enforcement
  • Typical ECA financing structures in shipping finance
  • Typical documentation package for an ECA-supported shipping finance transaction
  • More...

Shipping finance—Export Credit Agency financing

Export credit agency (ECA) supported financing has been a stable source of funding for the shipping and offshore industry for many years but the financial crisis triggered an increased role for export credit agencies in all sectors of shipping and offshore, from cruise ships to drilling rigs and liquefied natural gas (LNG) tankers. The involvement of ECAs is often much welcomed by banks in order to allow them to mitigate their capital allocation requirements for what is a very capital intensive industry.

ECAs offer, among other things, direct credit, insurance and guarantees to support ship financing transactions and protect the interests of domestic shipbuilders exporting globally. The financing structure and documentation involved will vary depending on what type of support is offered by the ECA.

What are Export Credit Agencies?

An ECA is usually a government entity or quasi-governmental agency but can also be a publicly or privately owned company (acting on behalf of the relevant government) which, in shipping finance transactions, either provides credit to ship owners for the purpose of financing in part their acquisition of a ship from a ship yard in the jurisdiction where the ECA is located, or guarantees or insures the commercial lenders providing that finance to a ship owner for the same purpose. ECAs are a tool of economic policy and are mandated to support each

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