Institution details

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EKN - The Swedish Export Credit Agency (EKN)

Key facts

  • Established in 1933
  • Ownership: Public
Part of the OECD Part of the Berne Union

Latest update: 03/12/2021

Products

  • Working capital credit
  • Investment credit guarantee
  • Buyer credit
  • Guarantee against loss on production and loss on claim
  • Guarantee for contract guarantee
  • Counter-guarantee for contract guarantees
  • Bill of exchange guarantee
  • Letter of credit guarantee
  • Other guarantees for banks

Working Capital Credit

  • EKN guarantees a commercial bank’s risk associated with a Swedish exporter
  • The bank shares the risk with EKN when offering working capital in the form of loans or overdraft facilities
  • Cover: Up to 50% of the working capital facility
  • Eligible borrowers: Swedish SME exporters or subcontractors to a Swedish exporting company with up to 250 employees and annual turnover less than SEK 500 million
  • Tenor: Up to 24 months; overdraft up to 12 months

Investment Credit Guarantee

  • Used by a provider of investment loans to cover the risk of loss in relation with an investment loan
  • A loan to an SME investing in production capacity in Sweden for exporting purposes
  • Eligible borrowers: Swedish SME exporters or subcontractors to a Swedish exporting company with up to 250 employees and annual turnover less than SEK 500 million
  • Tenor: Up to 7 years

Buyer Credit

  • Guarantees loan to a foreign buyer of Swedish goods and services against non-payment  
  • Eligible companies: SMEs and large companies
  • Cover:
    - Up to 95%
    - Borrower choses either commercial and political risk cover or only political risk over "
  • Tenor: At least 2 years if transaction is in the EU, Australia, Iceland, Japan, Canada, Norway, New Zealand, Switzerland or the U.S.; otherwise, tenor determined case-by-case based on risk assessment

Guarantee Against Loss on production and Loss on Claim

  • A combined guarantee against the loss on production and the loss on a claim has both the exporter and the lender as guaranteed entities
  • Amount: Determined based on the invoice amount minus profit margin and any advance payment
  • Protects against events that occur from the date of the binding contract
  • Eligible companies: SMEs and large companies
  • Cover:
    - Up to 95% of the exporter amount for production risk
    - Up to 100% for sovereign risk"
  • Fees:
    - In export transactions with a credit period of 24 months or more, the buyer must make a minimum advance payment of 15% of the contract amount no later than at the starting point of credit
    - EKN charges a premium, which reflects the risk and the structure of the transaction
    - The premium is expressed as a percentage of the guaranteed amount and must be paid within 30 days of the invoice date"

Guarantee for Contract Guarantee

  • For exporters who need contract guarantees issued
  • Covers risk of unfair calling of the contract guarantee by the buyer
  • This guarantee protects against events that occur with effect from the date on which the contract guarantee is issued
  • Used almost exclusively for unconditional contract guarantees (on-demand guarantees), where the buyer is entitled to request payment from the issuing bank without giving a reason
  • Eligible transactions:
    - Export of goods and services
    - EKN can guarantee both small and large transactions with this guarantee"
  • Risks covered:
    - Protection for supplier when buyer requests payment from issuing bank despite supplier’s discharge from contractual obligations"
  • Fees:
    - EKN charges a premium, which reflects the transaction risk
    - The premium must be paid within 30 days of the invoice date
    - EKN pays compensation within 30 days of supplier’s verification of right to compensation"

Counter Guarantee for Contract Guarantees

  • Protects the issuer of a contract guarantee (normally the exporter’s bank) against the recourse risk on the exporter
  • The buyer requires the exporter to provide a contract guarantee or bond in favour of the buyer (e.g. bid guarantee, performance guarantee, or advance payment guarantee)
  • Cover: Available due to the unfair calling of bonds
  • Premium: Priced to risk; 10% discount if premium is paid in full upfront

Bill of Exchange Guarantee

  • The bill of exchange guarantee is designed for banks that acquire bills of exchange for which there is an underlying export transaction
  • Cover: Typically, up to 95% of the bill of exchange for non-payment

Letter of Credit Guarantee

  • A risk-sharing arrangement between EKN and a bank to confirm L/Cs
  • Cover: Up to 50% of the total confirmed amount
  • Tenor: At least 2 years if transaction is in the EU, Australia, Iceland, Japan, Canada, Norway, New Zealand, Switzerland or the U.S.; otherwise, tenor determined case-by-case based on risk assessment

Other Guarantees for Banks

  • Investment guarantee for investments abroad: For either a Swedish investor or for a bank lending investment capital to the Swedish investment company
    - Eligibility: Investments or investment loans that promote Swedish interests
    - Cover: Political risk only"



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