May's newsletter: From the world of export and commodity finance

In this May edition, our newsletter brings attention to the incorporation of ECA debt into trader funding furniture, highlighting an intriguing wind farming deal and presenting sustainable ECA deal volume figures to kickstart your month with exciting updates. With our Amsterdam event drawing near, just three weeks away, our networking dinner tables are nearly sold out. This could be your final chance to secure your passes and actively participate in the commodity trade finance event.

If you have any comments or questions, please feel free to drop a comment, message us, or reach out to us at [email protected]. If you would like to schedule a consultation with us or learn more about data and how a TXF subscription can enhance your business, please get in touch.

Is ECA debt now part of the trader funding furniture?

While the growth of untied ECA lending provides flexibility for ECAs to compete with non-OECD ECAs, the inconsistent methodologies of this nascent product are a reminder of the need for more collective terminologies and definitions in export and project finance deals.

Read more

Latest news in export and commodity finance:

• The project financing of the $720 million 150,000-cubic-metres-per-day Al Wakrah and Al Wukair independent sewage treatment project in Qatar has reached financial close. Following close of bidding in September 2021, a consortium comprising Metito, Al Attiya Motors & Trading and Gulf Investment Corporation was awarded the 25-year-plus-construction PPP concession by Ashghal (Qatar’s public works authority) a year later in September 2022. Read more.
• Turk Eximbank signed a €140 million ($152 million) NEXI-covered loan last month. Proceeds will be used to support local exporters, SMEs, women inclusive companies and environmental projects. Read more.
• Colombian development bank FDN signed a COP700 million ($185 million) MIGA-covered loan on 12 February this year. Proceeds will be used for funding relevant financing operations linked to climate finance and road sub-projects. Read more.
• Czarnikow has revealed record annual profits for 2023 amounting to $93.9 million. This figure marks a 21% year-on-year increase from $77.6 million in 2022. Read more.

Spotlight deal of the month: 264MW Pagegiai wind farm secures funding

NIB and UAB LT Energija have signed a €100 million ($108.8million) loan for a 264MW wind farm in Pagegiai, Lithuania. The 21-year year loan will finance the construction of 40 wind turbines, as well as the associated civil and electrical infrastructure. The wind farm is expected to commence commercial operations in the third quarter of 2026. The estimated total project cost is €460 million.

Full tranche and company details can be found here

Sustainable ECA deal volume up in 2023; market share down

Sustainable deals in export finance increased significantly year-on-year by volume in 2023. The banner figure of $44.9 billion marked the highest total volume since our records began amid the record-breaking overall deal volume in export finance last year ($191.6 billion). But the market share of sustainable deals in export finance, which represented 23.5% of the total volume in 2023, dropped compared with 2022 – albeit by 3.4%.

There was also only an uptick of five deals despite the surge in volume of $16.8 billion from 2022. This was symptomatic of big-ticket ECA-backed project financings in renewable energy. In fact, this ballooning sector accounted for nearly two-thirds of sustainable deals in 2023.

Subscribers can access the full Sustainability in Export Finance report 2023 here.?

TXF Amsterdam 2024: Global Natural Resources & Commodities Finance

On the 22-23 May, fall down the rabbit hole with us at TXF Amsterdam 2024: Global Natural Resources & Commodities Finance as we mark our 10-year anniversary. Get access to originate deals with over 500+ traders, producers, lenders, platform providers, insurers, and more as we take over the Grand Hotel Krasnapolsky Amsterdam again!

View the latest agenda here

As we wrap up this newsletter, we'd like to share this month's featured song, Mad world by Gary Jules and Michael Andrews. Follow our Spotify playlist to listen now.

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Best,

Team TXF