Question 1

What is Eksportfinans?

Accepted Answer

Eksportfinans is a Norwegian credit institution that specializes in managing a portfolio of export-related lending. Established as a key provider of long-term financing for the Norwegian export sector, the institution is owned by 20 commercial banks operating in Norway (85 percent) and the Kingdom of Norway (15 percent). Since November 2011, Eksportfinans has discontinued issuing new loans and now focuses exclusively on actively managing its existing loan portfolio, along with its assets, liabilities, and commitments.

The company operates in a run-off mode, managing approximately NOK 1.0 billion in loans as of 2024, substantially all secured by guarantees from Export Finance Norway (Eksfin) and highly rated banks.

Question 2

When was Eksportfinans founded?

Accepted Answer

Eksportfinans was founded on March 2, 1962, following an initiative from the Norwegian Ministry of Finance, the Central Bank of Norway (Norges Bank), and Norwegian commercial banks. The institution was created to address a critical gap in Norway's financial infrastructure: the lack of suitable long-term financing schemes for Norwegian export industry and export contracts.

In 1978, Eksportfinans entered into a historic agreement with the Norwegian government to manage the OECD scheme for subsidized export financing on behalf of the state—an arrangement that would continue for more than 30 years. In 2001, the Kingdom of Norway became a shareholder by acquiring a 15 percent stake in the company to ensure Norwegian exporters maintained competitive financing terms.

Question 3

Where is Eksportfinans headquartered?

Accepted Answer

Eksportfinans is headquartered in central Oslo, Norway, at Dronning Mauds gate 15, P.O. Box 1601 Vika, N-0119 Oslo.

Question 4

Where does Eksportfinans operate?

Accepted Answer

Eksportfinans operates exclusively in Norway. The institution historically financed Norwegian export contracts from exporters across all counties of Norway, serving clients worldwide. Since 2011, when it ceased new lending operations, Eksportfinans has maintained its presence in Oslo, where it continues to manage its existing loan portfolio and related financial obligations.

All of Eksportfinans' borrowers are based within the OECD area, with Norwegian borrowers representing a major portion of the lending volume.

Question 5

What services does Eksportfinans offer?

Accepted Answer

Eksportfinans currently provides portfolio management services for its existing loan book. The company offers all necessary administrative services to borrowers as part of the loan management process, including payment processing, account management, and customer support for outstanding loans.

The institution manages a liquidity portfolio consisting of fixed-income funds and highly rated bonds, with an average duration of 2.5 years as of December 2024. Eksportfinans' current loan portfolio includes financing for customers in shipping, oil-related industries, renewable energy (particularly solar), as well as the banking and municipal sectors in Norway.

Since 2011, Eksportfinans has not offered new lending, guarantees, or export financing products. Companies seeking new export financing should contact Export Finance Norway (Eksfin), which assumed responsibility for state-supported export financing schemes.

Question 6

What makes Eksportfinans unique?

Accepted Answer

Eksportfinans distinguished itself as an innovative leader in international capital markets from the 1980s through 2012. The company was recognized for its groundbreaking approach to funding and proactive development of financial infrastructure, earning numerous awards and being named "International Borrower of the Year" on several occasions. Its first interest rate and currency swap in 1984 revolutionized borrowing possibilities in foreign currencies.

The institution played a pivotal role in Norwegian export financing for nearly 50 years, managing the Norwegian OECD-affiliated export credit scheme from 1978 to 2011. During the 1980s and 1990s, Eksportfinans collaborated closely with the Norwegian Development Aid Agency (NORAD) to offer mixed credits for financing Norwegian export contracts to developing countries.

Today, Eksportfinans' uniqueness lies in its specialized focus on prudent portfolio management during a controlled wind-down phase. The company maintains a robust liquidity position with a liquidity coverage ratio (LCR) of 780 percent and manages a conservative credit framework with minimal credit risk.

Question 7

What type of financial institution is Eksportfinans?

Accepted Answer

Eksportfinans is classified as a credit institution (kreditinstitusjon) under Norwegian law and European Banking Authority regulations. In the Norwegian context, it functions as a specialized financing company focused on export-related lending, distinct from traditional commercial banks.

The institution operates as a limited liability company (ASA - Allmennaksjeselskap) and is regulated as a credit institution under CRD (Capital Requirements Directive) regulations, specifically categorized as CRDCREINS (Credit Institution) in the EBA's register. Unlike deposit-taking banks, Eksportfinans historically funded its operations through bond issuances in international capital markets rather than customer deposits.

Since 2011, Eksportfinans has functioned as a portfolio management entity in run-off mode, distinguishing it from actively lending financial institutions.

Question 8

What was Eksportfinans' role in Norway's export credit system?

Accepted Answer

From 1978 to 2011, Eksportfinans served as the primary administrator of Norway's officially supported export financing scheme under the OECD "Arrangement on Officially Supported Export Credits." The institution provided both Commercial Interest Reference Rate (CIRR) loans and market-rate financing to support Norwegian exporters competing in international markets.

On November 18, 2011, the Norwegian government announced a restructuring of the country's export credit system. The government established Export Credit Norway (later merged into Export Finance Norway/Eksfin in 2021) to assume responsibility for new officially supported loans. This marked a significant transition in Norway's export financing landscape, with Eksportfinans transitioning from an active lender to a portfolio management entity.

Throughout its active lending period, Eksportfinans financed Norwegian export contracts spanning all industry sectors and geographic markets worldwide, maintaining high credit ratings that enabled favorable funding terms in international capital markets.

Question 9

How has Eksportfinans evolved since 2011?

Accepted Answer

Since discontinuing new lending in November 2011, Eksportfinans has undergone a strategic transformation focused on controlled portfolio reduction and risk management. The company has successfully managed a considerable reduction in both assets and liabilities while maintaining stable operations and a robust capital and liquidity position.

In 2024, Eksportfinans implemented significant simplifications as part of its ongoing wind-down, including discontinuing the 108-agreement with the Norwegian Ministry of Trade, Industry and Fisheries, transferring most of its liquidity portfolio from bonds to fixed-income funds, and substantially reducing bond debt to NOK 0.3 billion. The institution also announced organizational changes and staff reductions to be implemented in early 2025.

As of December 31, 2024, Eksportfinans maintained total loans of NOK 1.0 billion and a liquidity portfolio of NOK 3.9 billion, demonstrating prudent management during its transition phase. The company continues to fulfill its obligations to existing borrowers while gradually winding down operations.

Eksportfinans

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About Eksportfinans in Norway

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