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Catalysing collaboration between ECAs and DFIs Collaboration between ECAs and DFIs is a hot topic for the debt financing industry. Independently, they effectively catalyse investment from the commercial market with a halo effect – a valuable tool as the size and complexity of major industrial projects increases. Together, they can transform the prospects of big-ticket financings in emerging markets that would otherwise be deemed too risky. These deals come with the additional benefit of fulfilling their respective mandates – job creation and export promotion in support of sustainable development. How then can ECAs and DFIs better pool their resources? The data from TXF Intelligence depicts export finance deals that featured at least one DFI or MDB on the transaction, whether as a direct lender, a guarantor, a hedging bank or an advisor. The evidence is solid, even if there is room for improvement. 2023 brought a notable uplift for collaboration in a record year of export finance activity. Promisingly, some of the largest and most celebrated deals of 2023 benefitted from both ECA and DFI support, including NEOM Green Hydrogen Company, Baltic Power and H2 Boden Green Steel. Large MDBs tend to dominate the transaction list – the likes of the EIB, the IFC and MIGA. It is less common to see collaboration between national DFIs and their counterpart ECAs – Euler Hermes and KfW are among the more active national collaborators but even here they have featured on 65 deals together since 2019 out of 340 closed by Euler Hermes, around 19%. A common complaint levelled at both ECAs and DFIs is that their bureaucracy and compliance demands create roadblocks for dealmaking – and doubly so when they work together. There is an opportunity to streamline processes – if national DFIs and ECAs can better integrate their product offering, opportunities for collaboration would no doubt rise. Subscribers can access exclusive TXF data here: https://lnkd.in/dNGKSnxS If you're not a subscriber, explore TXF's subscription options here: https://lnkd.in/dpnscwud #TXF #ExportFinance #ECA #DFI #DebtFinancing #SustainableDevelopment #ProjectFinance Source: #TXFIntelligence

Edna Schöne, CEO of Euler Hermes, naturally chose the eponymous messenger Hermes as her legendary figure of choice when TXF spoke to her at Global 2024: Export, Project & Development Finance in Athens. But the discussion of the German ECA’s new transformational strategy was anything but mythological – faster, yes, but also leaner, greener, and better, will be the new watchwords. How will it be delivered? Read the full interview led by TXF's Head of Trade, Treasury and Risk Katharine Morton, here: https://lnkd.in/d3bZs2yv #TXF #ExportFinance #ProjectFinance #DevelopmentFinance #GermanECA #GreenFinance #FinanceInnovation

US Exim struggles to join the top table US Exim’s position in the export finance industry hardly matches the status and reach of the most powerful economy in the world. The US is a large exporter, but Exim has rarely been a significant catalyst for dealmaking. In part, this is due to political issues. Exim relies on regular authorisations from Congress to operate and it has stringent rules on default rates, American content requirements and sector discrimination. Taken together, these problems give the impression that Exim is weighed down by uncertainty. In a market that is increasingly defined by nimble financial institutions, Exim has not been able to let the handbrake off. Since its reauthorisation in 2019, dealmaking has been steady but not spectacular. The leap in 2020 is largely made up of a significant contribution to the Mozambique LNG deal – the project itself has been under force majeure since 2021 and funds are yet to be fully dispersed. Aviation continues to be a pillar of Exim’s activity. Its expertise in this area comes as no surprise, but it is pertinent that Exim has yet to involve itself in any major transactions for cutting-edge green industrial projects like green steel, hydrogen, or battery facilities. By contrast, European ECAs are taking a more prominent role in facilitating the EU’s plans for development. 2024 has brought promising signs. At the halfway stage of the year, a substantial amount has been closed and Exim could be on course for its best performance in a decade. Already it has signed a notable deal to support solar projects in Angola, marking Exim’s largest ever renewables deal. The caveat to this progress is that Exim’s future in the medium term will be dictated by the results of the presidential election. Exim’s activity was essentially suspended under the previous Trump administration. Can Exim reassure its clients that it will receive support for much-needed reforms from the federal government? Subscribers can access exclusive TXF data here: https://lnkd.in/dNGKSnxS If you're not a subscriber, explore TXF's subscription options here: https://lnkd.in/dpnscwud #TXF #ExportFinance #Dealmaking #Aviation #Finance #GreenProjects #RenewableEnergy Source: #TXFIntelligence

🌟 Enhance your dealmaking potential using TXF's Platform 🌟 Have you created your profile as a dealmaker yet? Our platform features a comprehensive Dealmakers database, showcasing the profiles of all successful deal creators. By clicking on a profile, you can view their activity, including all the deals they've participated in, with a detailed breakdown by industry and region. 🔖 To become a recognised dealmaker, simply tag yourself in the deals you've been involved in. You can find the complete database of all deals here. Already have a profile? Don't forget to keep it updated by adding any new deals you're working on. 🔗 Explore all deals here: https://lnkd.in/ewMvpsjH 📧 If you have any questions, feel free to contact our team: submissions@txfmedia.com Who knows, you might be our next Dealmaker of the Year! 💪 #TXF #Dealmakers #DealMaking #Finance #Networking

🔥 The TXF Export Finance Dealmakers Assembly & TXF DACH is the place to be with 60+ companies already attending! ☀️ Summer Offer (expires 30th August): Book now to save €800! https://lnkd.in/eeNrQ5FS The guest list for the deal-origination and meeting hub of the year is growing rapidly! This event champions networking and meetings, with strong attendance from ECAs, exporters & borrowers. Plan for the second half of 2024 now: 📆 19 - 20 November 2024 📍 Marriott Vienna, Austria You should expect carefully chosen keynotes, workshops with key executives, and ample opportunities for planned and impromptu meetings. See the full agenda here: https://lnkd.in/esU3UWte Join us in Vienna! 💫 #ExportFinance #Dealmakers #Networking #ECAs #Exporters #Borrowers #ViennaEvent #Finance2024

📹 TXF spoke with Natalie de Wit-Solounov, DEG's head of strategy to outline how the German DFI is backing small-scale projects and gender-based SME lending to its first green hydrogen project. There is also room for DFIs to support more first-loss or mezzanine tranches with investment-grade credits to leverage private investors. Find the interview here: https://lnkd.in/dfJpf2PT #TXFGlobal24 #DFI #GreenHydrogen #SMEFunding #GenderEquality #InfrastructureInvestment #PrivateInvestors

EET Fuels is leading the development of a major UK hydrogen cluster around its Stanlow refinery operations. The company has put its decarbonisation plans firmly behind alternative fuels as it looks to diversify its operations from traditional oil & gas assets. In the latest feature, Ralph Ivey discusses how EET Fuels is strategically investing in alternative fuels and decarbonisation efforts despite its foundation in traditional oil and gas operations. This includes developments like the UK's first industrial-scale blue hydrogen power plant at its Stanlow complex, plans for Sustainable Aviation Fuel (SAF) production, and partnerships for biodiesel and carbon capture initiatives. Read the full feature here: https://lnkd.in/d7aqNveY #TXF #OilandGas #EnergyTransition #Hydrogen #SustainableEnergy #RenewableEnergy

SACE has recorded huge increases in activity in recent years, primarily in support of domestic priorities. But is it pushing hard enough into the sectors and geographies that show the most promise? In this feature, TXF's content editor Nemanja Josifović discusses SACE's performance in the export finance industry in 2023, showcasing significant growth in both volumes and transactions. Despite a decrease in average transaction tenors, SACE's strategic focus on untied financing, particularly within Europe, has driven its expansion. Read the full feature here: https://lnkd.in/dmybwZas #TXF #ExportFinance #TradeFinance #ECA #ExportCredit #RenewableEnergy #FinanceTrends

Overall export, project and DFI activity strong post-pandemic Stronger activity across the export, project, and DFI finance markets has been driven by a focus on the energy transition from developers, ECAs/DFIs, and banks in the wake of the pandemic and war in Ukraine. However, the lack of agency cooperation must change to achieve carbon neutrality. Commercial debt and uncovered project finance saw significant figures in 2022, and ECA-backed loans followed in 2023. These volumes were largely directed toward developed markets, despite the pressing need for clean energy and resilient infrastructure in emerging countries. The UN has set a target of substantial annual funding to achieve the SDGs by 2030. DFI/MDB-backed loan volumes have increased slightly over the same period. Despite this, with DFI-backed and ECA-backed deals representing a small portion of the overall project finance space, it is evident that these government-related banks need to increase their support for the project sector. Conversely, project finance accounted for a significant portion of the total ECA market in 2023, marking a return to its pre-pandemic share of export finance. Blended finance still has much progress to make in the project sphere. Since 2019, DFI-ECA collaboration on infrastructure deals has been minimal, with only a few closed deals, indicating a need for greater cooperation from ECAs and DFIs on large-scale project financings. Subscribers can access exclusive TXF data here: https://lnkd.in/dNGKSnxS If you're not a subscriber, explore TXF's subscription options here: https://lnkd.in/dpnscwud #TXF #exportfinance #projectfinance Source: #TXFIntelligence

📹 Bart Raemaekers, head of guarantees and syndications at Asian Development Bank (ADB), outlines how the bank’s $13 billion pipeline is leveraging de-risking elements to meet a strong commercial appetite for green investment. He notes increased activity in renewables, EV manufacturing, green hydrogen and ammonia production, as well as an uptick in infra development with deals paused by Covid now hitting play. Find the interview here: https://lnkd.in/d2Pnus9x #TXFGloba24 #GreenInvestment #RenewableEnergy #EV #GreenHydrogen #AmmoniaProduction