Bpifrance Assurance Export
Bpifrance Assurance Export is a subsidiary of Bpifrance and the French export credit agency (ECA). It manages public export guarantees in the name, on behalf of, and under the supervision of the French government, a mandate dating from 2017 when the agency took over management of the State's export guarantees. Official materials state that it underwrites and delivers insurance that benefits from the direct guarantee of the French State.
The institution supports French companies and their banking partners by securing risks associated with exports. It offers a range of insurance products and guarantees at each stage of the export cycle and provides financial institutions with public guarantees on the export operations they finance. Bpifrance Assurance Export is listed as a member of the Berne Union.
Mandate and operating model
Bpifrance Assurance Export contributes to government economic policy by strengthening the competitiveness of French companies abroad and supporting growth and job creation. Solutions are available to any French or foreign credit institution, independently of financing solutions that the wider Bpifrance group may provide. The ECA role is pure cover: insurance and guarantee instruments rather than direct lending of the insured principal by the same entity.
An environmental and social analysis is integrated into the examination of projects eligible for public coverage, referencing OECD and other international standards. Compliance programmes address bribery, money laundering, terrorist financing and corruption.
Product families
Credit insurance products secure export contracts against interruption and non payment risks, and insure banking partners against non payment by foreign customers. Exporter facing products include commercial contracts insurance, supplier credit insurance, and services and intangible property insurance. Bank facing products include discounts and supplier credit assignments insurance, buyer credit insurance, and letter of credit confirmation insurance.
Export bond and working capital insurance encourage banks to deliver bonds and working capital loans by covering non payment of called bonds or working capital credits. Investment insurance protects investments abroad against political risks. Foreign exchange, contract and invoice payment flow insurance cover exchange risk on export offers and contracts. Strategic project insurance covers operations that go beyond classic credit insurance conditions where national interest for the French economy is identified.
Buyer credit insurance covers banks against non payment of loan instalments by a foreign buyer of French goods or services. Published materials state a standard cover percentage of 95 percent, with the bank retaining limited residual risk, and describe cover of up to 100 percent for the naval sector and for civil aircraft under the unconditional guarantee. Stabilised rates (CIRR) may apply to loans in euro, US dollar and other strong currencies. These instruments are forms of export credit guarantee or insurance underwritten for state account.
Eligibility principles
Published principles for export credit insurance include foreign and local content rules within OECD limits, OECD country risk classification from 0 to 7 for political risk, a minimum of 20 percent French content for export credit insurance (with distinct conditions for companies holding a Pass Export), and a subsidiarity principle under which state export credit cover is offered only where the private insurance market's offer is judged insufficient.
The Export Financing Policy published by Bpifrance Assurance Export sets the State's risk appetite by destination country and is updated periodically with country categories. Applications for cover may come from the French exporter or the bank. Cover decisions are made by an interministerial committee or by Bpifrance Assurance Export under delegated powers.
Bpifrance Assurance Export and the OECD Arrangement
Bpifrance Assurance Export applies the OECD Arrangement on Officially Supported Export Credits. France participates through the European Union Participant. The Arrangement applies to officially supported export credits with a repayment term of two years or more and sets maximum repayment terms, minimum premium rates and minimum interest rates for fixed rate official financing support. European texts guiding the activity include the EU framework for medium and long term export credits and short term export credit insurance rules.
French official support varies by product. Prospecting insurance, bond and pre financing related products, exchange rate hedging and strategic project insurance address different stages and purposes than classic tied medium and long term buyer credit insurance, and differ in French content and subsidiarity tests, Arrangement applicability, covered percentage and residual bank risk.
Bpifrance Assurance Export is French State export credit capacity administered inside the Bpifrance group for exporters, banks and related overseas investment and bond needs, operating within OECD Arrangement and EU export credit rules.