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Insuring export business as bank

Securitisation Guarantee for the KfW Refinancing Programme

NEWS: 15 March 2010

The European Commission gave its approval for the extension of the programme until 31.12.2010. Besides, the following features of the programme have been adjusted:

  • More flexible payment modalities: Now a multi-tranche disbursement in accordance with the project progress is possible.
  • Increase of the number of the eligible currencies: All currencies in respect of which the Federal Government issues guarantees and the KfW can provide refinancing are eligible.
  • Limitation of the handling fees: The handling fees, which are charged, will be limited to a maximum amount per refinancing scheme.
  • Total volume of the programme for the time being: EUR 1.5 billion, the total credit amount per exporter is limited to EUR 750 million (may be exceeded in individual cases).

Further information can be found on the external LinkInternet page of KfW and in the external Linkpress release of the Federal Ministry of Economics and Technology of 10 March 2010.

Product at a glance

The Securitisation Guarantees of the Federal Government enable banks to take part in the refinancing programme of KfW and facilitate in particular the long-term refinancing of export credits covered under a guarantee from the Federal Government. For this purpose banks sell their covered receivables (from existing and new loans) to KfW and make the funds which are freed up by this means available again for the financing of new business covered under Federal Export Credit Guarantees.

Target group

  • as policyholder/seller of receivables covered by a Federal Export Credit Guarantee
    • 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 maturity of the loan 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. On the one hand existing loans which are disbursed again for follow-up business eligible for support and covered by Federal Export Credit Guarantees within 12 months after their being refinanced by KFW and on the other hand new loans which have been disbursed qualify for this type of cover. 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 covered by a Federal Export Credit Guarantee.

From the viewpoint of the refinancing institution the Securitisation Guarantee is a separate, abstract, unconditional and irrevocable 100 % guarantee on first demand; for the relationship between the Federal Republic and the lending bank the conditions of the Buyer Credit Guarantee or the Airbus Guarantee remain applicable. Thus the purpose is to make it possible to tap the capital market.

  • Total volume of the programme for the time being: EUR 1.5 billion, the total credit amount per exporter must not exceed EUR 750 million (may be exceeded in individual cases).
  • Maximum volume of each individual transaction: EUR 250 million (may be exceeded in individual cases)
  • 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 for existing and new loans is that they are completely disbursed at the time when they are refinanced. Multi-tranche disbursement is possible in agreement with KfW.
  • The transactions concerned are export credits granted for exports to countries outside the EU.
  • The Federal Government checks and confirms upon request whether a transaction qualifies for support under the refinancing programme.
  • The EU’s approval was initially valid for 6 months. The extension of the programme until 31.12.2010 has been approved.

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

  • Mr Andreas Gehring: +49 (0) 40 / 88 43 - 92 97
  • Ms Gertrud Jakobshagen: +49 (0) 40 / 88 43 - 91 62
  • Mr Armin Knoop: +49 (0) 40 / 88 43 - 95 84
  • Email: info(at)exportcreditgarantien.de

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) (21 KB)
Word file Application Securitisation Guarantee for the KfW Refinancing Programme (German version only) (81 KB)

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