News from 11-10-2013

Finnvera to offer new export credit guarantee in co-operation with NEFCO

Nordic Environment Finance Corporation (NEFCO) will begin offering export credits for small-scale projects with environmental benefits in Russia, Ukraine and Belarus. As there is a lack of export credit financing from commercial banks for small and medium sized projects, it makes it difficult for smaller Nordic companies to deliver equipment for a number of projects and investments outside the Nordic region. The export credits are therefore intended for Nordic companies export deliveries valued at EUR 0.5-5 million. Nordic export credit agencies are involved in the financing model to share the risks by granting export credit guarantees.

For a Finnish exporter, the buyer credit arrangement means that their foreign client can receive an export credit from NEFCO to finance the purchase of Finnish goods. The exporter will get the contract price on cash terms, whereas Finnvera's export credit guarantee enables NEFCO to grant the export credit. To be eligible for financing, the foreign client needs to be creditworthy.

The Nordic Environment Finance Corporation is an international financial institution. It was founded in 1990 by the governments of five Nordic countries: Denmark, Finland, Iceland, Norway and Sweden. Its headquarters are located in Helsinki. The goal of NEFCO is to participate in the realisation of cost-effective environmental projects, primarily in regions neighbouring the Nordic countries. Priority is given to projects that cut greenhouse gas emissions, improve the ecological state of the Baltic Sea or mitigate the release of toxic pollutants. NEFCO provides loans and makes capital investments. NEFCO has financed a wide range of environmental projects in Central and Eastern European countries, including Russia, Belarus and Ukraine.

Source: Finnvera & NEFCO