Product

Political risk guarantee

A political risk guarantee is a service for both banks and investors. The guarantee protects loans, guarantees and investments outside Norway against losses due to political situations.

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About the product

How a political risk guarantee works

A political risk guarantee covers losses due to sanctions, expropriation, civil unrest, currency restrictions, etc. Eksfin offers the guarantee to both investors and banks to cover equity and loans/guarantees, respectively.

The guarantee can be provided for investors who wish to invest in foreign companies and protect their investments against political risk in the country of investment.
The guarantee can be provided for banks that grant loans or guarantees for loans, to buyers of Norwegian exports or to companies abroad in connection with Norwegian investments. The objective is to make it easier for banks to offer companies financing related to a company’s exports.

Conditions and structure::

Eksfin can guarantee up to 100% of the investment or loan with a normal coverage ratio of 90% based on a risk assessment.
The guarantee has a validity period of up to 20 years.
Sustainability, environmental, anti-corruption and KYC requirements must be satisfied in accordance with relevant regulations.
Required Norwegian content in export contracts: 30% Contracts with a lower percentage of Norwegian content may upon specific assessment be considered to significantly promote Norwegian exports. Alternatively, if there is less than 30% Norwegian content, Eksfin can still participate in the financing but with an amount that is proportionate to the Norwegian content.