Institution details
EKN - The Swedish Export Credit Agency (EKN)
Key facts
- Established in 1933
- Ownership: Public
Part of the OECD
Part of the Berne Union
- Kungsgatan 36, 6th Floor
- +46 8 788 00 00
- https://www.ekn.se
Latest update: 03/12/2021
rating type | rating agency | type | rating |
---|---|---|---|
Institution rating | S&P | Foreign currency | AAA |
Country rating | S&P | Local currency | AAA |
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"
Modality | Tenor | Cover type | coverage |
---|---|---|---|
Guarantee | Short/medium/long-term | Comprehensive | Up to 100% |
Performance highlights
What's new?
- Hans Lindberg was appointed by the Swedish government as chairman of EKN’s board of directors, succeeding the outgoing Jan Roxendal
- In 2018, EKN downgraded the risk category of Nicaragua, Turkey, and Zambia
- Cover for direct and indirect Swedish exports
- EU rules limit EKN’s guarantees for trade receivables and loss on claims to a risk period longer than 2 years for exports to any EU country, as well as Australia, Iceland, Japan, Canada, Norway, New Zealand, Switzerland and the United States
- EKN’s statutory limit is SEK 450 billion and within this total ceiling amount, EKN is authorized to issue guarantees
- Currency: SEK, USD, EUR, CHF, and JPY