ECA finance

ECA finance is shipbuilding lending backed by a government export credit agency to support orders placed at that country’s yards. The agency either guarantees a commercial bank loan or lends directly, typically covering up to 80 percent of the contract price under the OECD Arrangement on Officially Supported Export Credits and its Sector Understanding for ships, which sets a maximum 12-year repayment and minimum premium rates. Korea’s K-Sure and KEXIM, Japan’s JBK and NEXI, China’s Sinosure, and Europe’s Euler Hermes, SACE, and GIEK are active in vessel deals. The structure lowers the cost of capital for buyers ordering at supported shipyards.