Denmark’s Eksport Kredit Fonden (EKF) and Bermuda-based Sovereign Risk Insurance Ltd. have completed a political risk insurance contract supporting DKK100 million ($17.1 million) of exports to Ukraine.
“The transaction involves export of equipment for processing edible fats and oil to a number of mills in the Ukraine,” said the announcement. “The exporter is Alfa Laval Copenhagen A/S, and the Ukrainian borrower’s obligations are insured under EKF’s insurance contract. The transaction also involved banks, one of which is the beneficiary of EKF’s policy. The fact that the transaction also included non-Danish content prompted EKF to get reinsurance for part of its exposure.”
Lars Kolte, EKF’s Managing Director, who is also President of the Berne Union (the world-wide organization of national export credit agencies (ECA) and investment insurance agencies) noted: “The cooperation between EKF and Sovereign has made it possible to make a deal where the Danish part is relatively small – below 20 percent. This marks the first time EKF has utilized private reinsurance.”
Sovereign’s President and CEO Price Lowenstein indicated that he was “extremely pleased about the opportunity to work with EKF, and look forward to being able to assist EKF on other transactions for which reinsurance might be needed.”
He further commented that Sovereign has longstanding relationships with both multilateral and national export credit agencies, and very much values the relationships with these agencies. “Sovereign’s understanding of the constraints under which national agencies operate, and our ability to offer creative and customized solutions, as well as our strong claims payment record, are important ingredients in our success in working with agencies on a global basis.”
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