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Insuring export business as bank

Securitisation Guarantee for the KfW Refinancing Programme

NEWS: March 2011

In 2011 and 2012 Kreditanstalt für Wiederaufbau (KFW banking group) will offer a programme for long-term refinancing to the German export industry on behalf of the Federal Ministry of Economics and Technology provided that  the transactions in question are covered under a Buyer Credit or Airbus guarantee and, in addition, a Securitisation Guarantee from the Federal Government.

Further information can be found on the external LinkInternet page of KfW.

Product at a glance

The Securitisation Guarantees of the Federal Government enable banks to take part in the refinancing programme of state KfW banking group and obtain long-term refinancing with congruent maturity for buyer credits covered under a guarantee from the Federal Government or an Airbus Guarantee.

With that a state refinancing instrument continues to be available to German exporters until the end of 2012. It contributes to the creation of a level playing field on international level.

Target group

  • as policyholder
    • German banks
    • German branch offices of foreign banks
    • Foreign banks (under certain conditions)
  • as beneficiary/refinancing institution
    • Kreditanstalt für Wiederaufbau (KfW), which at the same time refinances the loans

Credit periods of loans to be bought

Depending on the Buyer Credit Guarantee or Airbus Guarantee on which it is based (medium/long-term), however, the time remaining until the loan matures must be at least three years.

Special features

  • A Securitisation Guarantee is applied for in addition to a Buyer Credit Guarantee or an Airbus Guarantee. Besides, the policyholder, KfW and the Federal Republic of Germany enter into a separate contract for the granting of a guarantee for each refinanced loan.
  • The loan contract must not date back more than six months.
  • From the point of view of the refinancing institution the Securitisation Guarantee is a separate, abstract, unrestricted and irrevocable 100 % guarantee on first demand; for the relationship between the Federal Government and the lending bank the conditions of the Buyer Credit Guarantee or the Airbus Guarantee remain applicable.
  • The assignment of the claims arising from export loan is not normally required
  • The programme is organized in such a way that agreements on minimum interest rates are observed so that the EU Commission’s requirements concerning competition are met. There are no interest rebates, subsidies or grants involved in the programme.
  • Total volume of the programme: EUR 1.5 billion annually.
  • Eligible contract currencies: Euro (EUR), US Dollar (USD), Swiss Franc (CHF), Japanese Yen (JPY), Australian Dollar (AUD), Pound Sterling (GBP), Danish Krone (DKK), Canadian Dollar (CAD), New Zealand Dollar (NZD), Swedish Krona (SEK), Icelandic Krona (ISK).
  • A precondition is that loans which are to be refinanced are completely disbursed. Multi-tranche disbursement is only possible in agreement with KfW.
  • The transactions concerned are export credits granted for exports to countries outside the EU.
  • The Federal Government normally checks and confirms whether a transaction qualifies for support under the refinancing programme after an offer of cover has been issued and KfW has subsequently indicated its terms.
  • For the time being the programme is limited in time until 31.12.2012.

Premium

  • For the Buyer Credit Guarantee/Airbus Guarantee and the Securitisation Guarantee the usual premiums have to be paid. Nevertheless, in the case of an Airbus Guarantee only half the normal premium will be charged for the Securitisation Guarantee.
  • KfW will charge a spread and fees for making refinancing funds available.

Uninsured portion

No uninsured portion for the beneficiary (refinancing institution)

For advice please contact

Further information

More details regarding the terms and conditions of the KfW Programme, especially how it can be effectively used to improve the refinancing possibilities, can be found on the external Linkwebsite of KfW.

Downloads

Application Securitisation Guarantee for the KfW Refinancing Programme (German version only) (73,5 KB)
Word file Application Securitisation Guarantee for the KfW Refinancing Programme (German version only) (223 KB)

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