Green credit guarantee

The green credit guarantee facilitates access for exporting companies and their subcontractors to financing investments in the green transition of production or for working capital needs in green business operations. EKN reimburses for any loss up to 80 per cent of the credit outstanding.

Credits that can be guaranteed with EKN’s green credit guarantee for banks

EKN can issue a green credit guarantee when a lender grants a loan, overdraft or revolving credit facility up to SEK 500 million to a business operation or investment that contributes positively to the climate transition. The assessment is based on the activities included in the EU Taxonomy.

The guarantee is issued to Swedish or foreign banks that issue credits to Swedish exporters and their subcontractors – regardless of whether the company is investing in a green transition of its business operations or wants to expand its operation with green products. The credit can finance short-term working capital needs as well as constitute an investment credit with the aim of financing increased production capacity, which contributes positively to the climate transition.

The financing need can relate to costs incurred prior to an export order or an agreement being signed. The financing must be separate from the borrower’s need for more long-term risk capital or equity needed to, for example, establish itself as an exporter. EKN cannot guarantee already issued credits, as the guarantee is intended to cover new exposure by the lender.

Export requirement to apply for the credit guarantee

If the application pertains to a credit that does not constitute financing of a specific export transaction, at least 25 per cent of the borrower’s turnover must consist of exports of Swedish goods or services.

If the borrower is a subcontractor, at least 25 per cent of the exporting company’s turnover must consist of exports of Swedish goods or services.

Application

Apply well before the credit is made available for the borrower, no later than the same day. A supplementary form from the exporter/subcontractor that describes the business operations or business transaction must be attached to your application. The exporter must also specify how its activity or investment is expected to contribute to the climate transition and classify it in accordance with the EU Taxonomy. An application for an offer is free of charge.

Offer

Based on the application and the supplementary form, EKN decides whether the criteria for the Green Credit Guarantee have been met and whether the risk is acceptable and then provides you with a quotation. The offer states the premium, or in other words what the guarantee will cost you. EKN determines the premium based on the credit risk assessment of the borrower which must reflect the market price for the transaction.

It is very important that you read through EKN’s General Terms and Conditions for Green Credit Guarantees and any additional terms in the offer carefully before the guarantee is issued.

Extension of the validity of the offer

If you want to extend the validity of the offer, we require updated information. You can download the forms required for this further down the page.

Request for guarantee

When the loan has been disbursed, alternatively when the loan agreement has been entered into in relation to overdraft or revolving credit facilities and you want to have the guarantee issued, you submit a notification to EKN within ten days.

Non-payment

If the buyer or borrower has not paid a claim covered by an EKN-issued guarantee within one month after the due date, you must, as the guarantee holder, notify EKN of this in writing.