PensionDanmark embarks on export-financing programme
EUROPE - Labour-market fund PensionDanmark is lending DKK250m (€33.6m) in export financing to a Belgian offshore wind farm project as part of its pledge to invest DKK10bn in financing to support Danish exports.
The DKK122bn pension fund is providing funding for an export order of 72 Vestas wind turbines for the Northwind wind farm, which is located off the coast of Belgium.
Danish company Bladt Industries is also involved as another supplier of equipment and services.
Torben Möger Pedersen, chief executive at PensionDanmark, said: "We are extremely pleased with our agreement with EKF, which will benefit both PensionDanmark's members and Danish exports.
"PensionDanmark's members are ensured a stable return substantially above the bond rate.
"Moreover, the partnership facilitates Danish export orders at a time when it is difficult for the international customers of Danish companies to obtain bank funding."
Last autumn, the pension fund signed a three-year deal with Denmark's export credit agency (EKF) to lend to foreign companies placing orders with Danish businesses, with the loans guaranteed by the agency.
PensionDanmark agreed to provide a total of DKK10bn in financing, and said the deal would give it a yield above government bonds for state-guaranteed loans.
Including this latest agreement, the pension fund has now contributed export funding of more than DKK1.2bn under the agreement.
The first export deal under the framework agreement happened last autumn with financing of about DKK1bn for the export of 66 Vestas wind turbines to a wind farm in Sweden.
Anette Eberhard, chief executive at the EKF, said: "The partnership between EKF and PensionDanmark showcases how public-private partnerships can generate growth and jobs."
Northwind is owned by the supermarket chain Colroyt and a Belgian developer.
In May, PFA Pension followed PensionDanmark's lead, agreeing to provide DKK10bn in state-guaranteed export financing under similar conditions.