Norwegian state export backing: – Invaluable

Norwegian state lender Eksfin’s guarantees provide Bracom with the necessary working capital and credit facilities for further growth in Germany. That’s the most recent story on the Norwegian financial institution’s website. International contracts often require bank guarantees – and become easier to finance when Eksfin is involved. The guarantee facility of NOK 42.5 million from Nordea and Eksfin enables Bracom to secure new contracts and grow in the German fibre market.

With fibre coverage in Germany at under 50 per cent, Bracom has identified significant potential in Europe’s largest market, EksFin writes in the press release. They add that Bracom has won major projects for OXG and Deutsche GigaNetz, and that the volume of work is increasing.

– The projects we are carrying out in Germany are important both for the modernisation of European infrastructure and for Norwegian industrial development. EksFin plays a key role in securing the necessary guarantee capacity for large and long-term contracts, says Erling-Geir Iversen, CEO of Bracom.

Warranty guarantees running for up to five years tie up large credit lines over time – making Eksfin’s risk relief important for both Bracom and Nordea. This gives Bracom better liquidity and increased execution capacity.

‘The collaboration between Nordea and Eksfin enables Norwegian companies to secure larger international contracts,’ says Oda Graff, Senior Relationship Manager at Nordea. ‘Bracom has experienced strong growth in the German market, and Eksfin’s guarantees have been crucial in enabling us to provide the necessary financing during this phase,’ she says.

Exporting is not just about goods, explains EksFin in the news article about BraCom. Services, such as BraCom’s project management and project expertise, also qualify for export financing. EksFin’s risk relief thus helps to stimulate Norwegian exports.

– Norwegian companies looking to grow internationally often need larger guarantee and working capital facilities than banks feel they can justify only on the business case merits. EksFin can contribute to financing for companies operating within an export value chain, including in the export of services, says Cathrine Høgebøl, senior account manager for renewable energy and industry at EksFin.