Finnish Export Credit financing facility signed with Wärtsilä’s customer for a project in the Dominican Republic

An export credit facility between Seaboard Corporation, a US-based company and a client of Wärtsilä, and Standard Chartered Bank was signed on September 17th, 2010. This 12-year, USD 114 million (EUR 88 million) transaction to finance a power plant project in the Dominican Republic, is the first non-shipping and only the second export contract to utilize the new Finnish Export Credit (FEC) financing scheme.

Seaboard Corporation will use the credit funds to acquire a barge-mounted power plant from Wärtsilä to supply electricity to the national grid of the Dominican Republic. Under this turnkey contract, announced by Wärtsilä on August 30, Wärtsilä will supply generating equipment for this power plant, which will run on natural gas, and have a net output of 106 MW. It is scheduled to be operational before the end of 2011.

In response to the liquidity constraints caused by the global financial crisis, the Finnish Parliament, in December 2008, approved a temporary refinancing program of export credits by FEC for the years 2009 and 2010. The aim of the program is to ensure continuity in the long term financing of export transactions for Finnish export companies.

“We are very pleased with Wärtsilä’s ability to support us in the full turnkey power barge project, not only with their competitive power plant solution, but also with support in finding suitable financing for the project,” says Barry Gum, Vice President, Finance and Treasurer, Seaboard Corporation.

“The Finnish Export Credit financing scheme provides the necessary liquidity to fund credits extended to customers of Finnish exporting companies. It is an important element in maintaining the competiveness of Finnish exporting companies under the prevailing constraints within the funding market. While the availability of financing has improved since the financial crisis, the need for credit facilities backed by the Finnish Government through Finnish Export Credit and Finnvera remains,” says Markus Pietikäinen, Vice President Group Treasury and Financial Services at Wärtsilä Corporation.

Wärtsilä in brief
Wärtsilä is a global leader in complete lifecycle power solutions for the marine and energy markets. By emphasising technological innovation and total efficiency, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2009, Wärtsilä’s net sales totalled EUR 5.3 billion with more than 18,000 employees. The company has operations in 160 locations in 70 countries around the world. Wärtsilä is listed on the NASDAQ OMX Helsinki, Finland.
www.wartsila.com

Finnvera and FEC in brief
Finnvera plc is a specialised financing company owned by the State of Finland. By providing loans, guarantees and export financing services, Finnvera supplements the financial market and improves the range and versatility of financing options available to Finnish enterprises. www.finnvera.fi
Finnish Export Credit Ltd (FEC) is an internationally notified official Export Credit Agency and a wholly owned subsidiary of Finnvera.
www.fec.fi