Record number of deals for EKN in 2019
EKN’S ANNUAL REPORT 2019. EKN enjoyed another successful year in 2019, with a record number of deals and a sustained high volume of guarantees.
“It is particularly rewarding that more small and medium-sized businesses than ever before made use of EKN’s guarantees,” says Anna-Karin Jatko, Director General at EKN.
The volume of guarantees issued by EKN remains at a high level and has increased for transactions with Asia and North America. The total amount guaranteed was 54.2 billion SEK and 2,135 new deals were guaranteed. Major new deals in 2019 include, for example, export of equipment to wind power, bus transport and telecom.
“The demand for guarantees reflects global demand in areas like renewable energy, public transport in growing cities and the rollout of 5G networks,” says Anna-Karin Jatko.
Small and medium-sized companies (SMEs) account for a growing share of the rise in Swedish exports, and EKN has over several years increased the volume of guarantees issued to this important sector. More than a third of this year’s new transactions involved SMEs.
“Regional presence and close cooperation with local banks and Almi (*) have contributed to a record number of SME’s making use of EKN. We have also witnessed a growing demand for EKN’s guarantees that are specially tailored to the financing needs of SME’s,” says Anna-Karin Jatko.
Risk management has grown increasingly important to the banking sector in the wake of new regulatory capital requirements. In addition, geopolitical and trade-related uncertainties contribute to the need for risk cover. When Sweden – as one of some ten countries worldwide enjoying a AAA rating – covers the risk of non-payment, this paves the way for competitive financing solutions. Also, EKN has expanded its network of international finance institutions and EPC (Engineering, Procurement and Construction) contractors.
“The competitive edge of high-quality Swedish products is further sharpened when financing is added, and financing solutions increasingly form the starting point of an export deal,” says Anna-Karin Jatko.
No new major claims were filed in 2019 and the profit amounted to 1.1 billion SEK. The financial standing of EKN remains solid.
2019 in brief (compared with 2018)
- Volume of guarantees: 54.2 billion SEK (56.8)
- Volume of offers: 93.1 billion SEK (71.9)
- Number of new deals guaranteed: 2,135 (2,082)
- New deals guaranteed for SME’s: 725 (682)
- Number of clients: 445 (419)
- Profit: 1.1 billion SEK (1.0)
*State-owned Almi provides venture capital for early-stage, emerging companies with high growth potential.
For more information please contact
Beatrice Arnesson, Director of Communications, +46 8-788 00 36, email@example.com