Eksportfinans gives notice of no event of default to Deutsche

By Jennifer Chiou

New York, Dec. 23 - Eksportfinans ASA provided notice to Deutsche Trustee Co. Ltd. confirming that no event of default has occurred for notes under its $40 billion euro medium-term note program, according to a 6-K filing with the Securities and Exchange Commission.

The Oslo-based financier for Norway's export industry specifically gave notice with a formal certificate signed by its chairman and the managing director.

The filing noted that the certificate confirms that the Norwegian government's decision to establish its own export financing scheme and the consequent decisions taken by Eksportfinans for its loan portfolio do not amount to the issuer ceasing or threatening to cease the whole of its business.

Eksportfinans said in the 6-K that it intends to "continue to manage a very substantial business, being the existing loan portfolio and its investment activities and derivatives positions."

Further, the certificate confirms Eksportfinans' view, on advice from Japanese counsel, that the purported declaration of default from a holder of its Japanese bonds is invalid.

In November, the company said that it would honor all of its existing obligations as they come due after news that the Norwegian government was to establish an export financing scheme for any new lending after Nov. 18.

As of Sept. 30, the company had NOK 205 billion of outstanding bonds, NOK 1 billion of subordinated debt and NOK 8 billion of commercial paper debt.

Estimated payments for the bond debt come to NOK 32 billion in 2012, NOK 36 billion in 2013 and NOK 13 billion in 2014, according to a prior filing with the SEC.

Eksportfinans already said that it has five loans that will be over the limit for large exposures to one single client at the end of its exemption period on Dec. 31, 2012. It is in the process of addressing this issue.

The company was previously cut to junk status by Moody's Investors Service.

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