Finnvera guarantees and Finnish Export Credit finances an export credit facility for Etihad Etisalat Company (”Mobily”) of Saudi Arabia
Finnvera guarantees a buyer credit that is used to finance deliveries of telecommunications equipment from Nokia Solutions and Networks to Etihad Etisalat Company ("Mobily") in Saudi Arabia.
The guaranteed credit is at most USD 280 million. Finnvera's guarantee covers 95 per cent of the credit. The holder of Finnvera's guarantee is Deutsche Bank AG. Finnish Export Credit finances the credit. The first equivalent export credit facility of USD 325 million was arranged in July 2013. In addition to Deutsche Bank, the credit is being arranged by Crédit Agricole CIB and Société Générale.
"For Finnish companies dealing in capital goods, it is crucial that the Finnish export credit system is able to, through Finnish export financing system provided by Finnvera and Finnish Export Credit, offer buyer financing on a par with that offered by any competing country. In this specific case, the Swedish Export Credits Guarantee Board (EKN) and Swedish Export Credit Corporation (SEK) entered into a similar financing arrangement for deals with a Swedish equipment supplier competing with NSN. In such tight competition, the availability and terms of financing affects whether equipment suppliers win bids as well as market share," explains Finnvera's Executive Vice President Topi Vesteri.
Etihad Etisalat Company (”Mobily”) is Saudi Arabia's leading telecommunications operator. Mobily's goal is to expand and enhance 3G and 4G networks in Saudi Arabia during the period of 2014-2016.
Topi Vesteri, Executive Vice President , tel. +358 (0)29 460 2676
Tuukka Andersén, Vice President, Head of Underwriting, tel. +358 (0)29 460 2688