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Project Financing Guarantee
Offshore wind park
Project Financing Guarantee

Obtain financing for major export projects

It can be difficult to put together the financing for major projects such as cement plants, wind farms and large port terminals. This is due to the uncertainty inherent in an extended time frame, the scale of the project or its technologies, and the prospects for selling the project's goods or production. This is where EKF can step in with a Project Financing Guarantee, which provides security for the bank to lend to the project. This can pave the way for greater risk appetite and increased Danish exports.

What we offer

We help put together and participate in the financing for a project.
We ensure that a bank will make financing available.
We compensate the loss if the project company does not pay as agreed.
With the backing of EKF, it is easier to obtain long-term financing.
You run no financial risk.

Requirements for your business

The project must be large enough to match up to the financing costs.
There must be a solid and well-conceived business plan.
An independent due diligence process must be effected.
Your company must generate economic growth in Denmark
Your business must be conducted on an environmentally sound and socially responsible basis.

How a Project Financing Guarantee works

Major projects with lengthy time frames often carry greater risk than banks generally want to assume when lending money.

With a Project Finance Guarantee, banks are ensured repayment of the guaranteed portion of the loan. If something goes wrong during the project, EKF will pay compensation.

With financing from one or more banks and equity from investors, the project can place its order with you.

Illustration af Project Financing Guarantee
Case

Guarantee secured financing of salmon farm in Switzerland

The Swiss Alpine Fish company saw the potential in producing sustainable Atlantic salmon deep in the Swiss Alps. The company chose a turnkey solution from Danish companies Krüger A/S and Gråkjær A/S. A circle of investors injected more than half the overall project costs, which totalled EUR 15 million. However, raising the rest of the capital as loans from Swiss banks proved challenging. Thankfully, with EKF behind them, the Danish exporters were able to offer a financial solution for the project. EKF issued a Project Financing Guarantee to cover more than half of a EUR 7 million loan from Crédit Suisse.

Read their story
The process

How to get a Project Financing Guarantee

En havvindmøllepark og bølger på havet.

You want to secure financing of your export for a major project

You have the opportunity for a large export deal for a major foreign project. Investors may be prepared to provide some of the financing, but bank loans are also required.

Ikon for sikkerhed i EKF's rød og blå farve

The bank requires security for the loan

The bank believes the project risk is too large, and wants security for the loan. You contact EKF and talk to us about the project.

Ikon af kreditvurdering i EKF's rød og blå farve

We run a credit rating check on your export project

You ask EKF to assume some of the risk for the bank loan in the form of a Project Financing Guarantee. However, we must first run a thorough credit rating check on the project and various other factors to establish the extent of the risk. This includes a CSR screening, among other things. If the guarantee amount is over DKK 25 million, a more in-depth CSR assessment will be required.

How we work with CSR
Ikon for Købsaftale i EKF's rød og blå farve

Offer

If we approve the project, we will send the bank an offer detailing the cover, price and conditions.

Vindmølleoperatør i gang med at bygge en vindmølle.

And we're done

We issue the Project Financing Guarantee to cover the risk for the part of the loan that we are guaranteeing. The project can then buy your product or service.

The small print

Contact an advisor
Head of Team Offshore and Project Finance Jørgen Kragh

Any questions about Project Financing Guarantees?

If so, call or write to Head of Team Offshore and Project Finance Jørgen Kragh at telephone +45 3546 2664 or e-mail jkr@ekf.dk.

Does a Project Financing Guarantee not cover your needs?