Danish export credit agency EKF and Mexican bank Banorte have signed an agreement as the pair seek to help Danish firms export to the North American country.
With a particular focus on the agricultural, industrial and energy sectors, Banorte will issue a financing offer to Danish exporters which the exporters can include in their equipment quotation to their prospective buyers.
EKF chief underwriter Lars Smed adds: “Danish exporters gain a significant competitive advantage because it will facilitate financing of Mexican purchasing of goods in Denmark. EKF guarantees the financing, which thereby grants Mexican buyers credit for three to 10 years – for renewables up to 18 years.”
A spokesperson for EKF tells GTR: “Projects from US$1mn and up can be financed under the agreement, and for projects related to agriculture and food-tech the limit is US$500,000. There is no upper limit on the size of Banorte’s loans to individual Danish companies.”
When asked about the total size of the agreement, he adds: “There is no maximum amount for financings under the agreement. Each transaction will be assessed on a case by case basis.”
Speaking about the partnership, CEO of Grupo Financiero Banorte, Marcos Ramírez Miguel, says: “With this agreement we will combine Banorte’s specialisation in infrastructure and energy with EKF’s experience in renewable energy projects, in line with our commitment to sustainability in Mexico, as well as numerous sectors in which our economies are complementary.”
According to EKF, Danish sales and goods exports to Mexico, which were valued at DKK5.7bn in 2018, are projected to rise by 5.5% this year.
This chimes with a wider trend seen across the EU, with Jacob Warburg, chief economist at the Danish Ministry of Foreign Affairs, noting that total exports from the EU to Mexico have increased over 400% since a trade agreement was struck between the two countries in 2000.