Credit Guarantee to secure access to raw materials

The credit guarantee to secure access to raw materials is a credit guarantee in favour of banks and covers non-payment by the supplier under the credit agreement.

A bank can apply for the credit guarantee to secure access to raw materials if the loan is granted in connection with a long-term offtake contract (for example for the purchase of concentrates for the basic metals industry). The offtake contract must provide a reliable source of raw material needed for a longer time-period.

The raw material supplier needs to be situated abroad and a condition for the issuance of a credit guarantee is that there is a significant Swedish public interest or that the activity is otherwise deemed to be of significant benefit to economic development in Sweden. The loan period should be related to the project’s commercial nature and to the offtake contract.

The risk must be justifiable and internationally accepted standards for the project’s environmental and social impact must be met.

Web page last updated 23 Sep 2022