Export credit agency (ECA) finance is a valuable financing tool, with its associated stability and widening support for a range of sectors and industries. From short-term working capital, to financing medium to long-term capital intensive expenditures and trade flows, ECA-backed financing solutions are resurfacing as a priority.
Volatility in the capital markets
availability and competitiveness of ECA-supported funding without susceptibility to market “windows”
Major capex spend announced across industries
post-pandemic investment and pressure on borrowers’ traditional sources of capital
ECA new product support driven by global policy priorities
availability of ECA programs covering raw materials and critical minerals, as well as a focus on “green” projects, both at home and overseas
Geopolitical uncertainty leading to focus on reshoring production
tailored ECA programs to support domestic exporters directly for in-country imported goods and services
Historically, ECAs have been active in times of crisis, and due to recent evolving global challenges, these agencies are now providing wider support than their historical mandate; increasingly extending their remit beyond the safe harbor of the Organization for Economic Co-operation and Development (OECD) Consensus into areas that could come under scrutiny as state aid.8, 9
J.P. Morgan’s Export & Agency Finance offering provides clients with ECA and multilateral agency credit-enhanced solutions, with a particular focus on long-term financing alternatives for their capital-intensive expenditures. The team provides focused global expertise from Abu Dhabi, Dubai, London, New York, Seoul & Singapore.