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New credit guarantee to secure Sweden’s access to raw materials
To secure access to raw materials for Swedish companies, EKN is launching a credit guarantee for imports for the first time. This entails an expansion of EKN’s mission.
The new raw materials guarantee was made possible through EKN obtaining a new ordinance and addition to the letter of appropriation on 1 September 2022. Previously, EKN’s mission was limited to Swedish exports.
“The smooth function of Sweden’s raw materials supply is crucial. Many Swedish companies depend on raw material imports, particularly industrial companies that develop climate-smart solutions. The raw materials guarantee means EKN can now assist in securing access to these raw materials,” says Anna-Karin Jatko, Director General of EKN.
The raw materials guarantee is an insurance that cover the risk of non-payment for a loan to a major investment with the purpose of securing the production of raw materials abroad.
For the guarantee to be issued, a long-term supply contract known as an offtake contract, needs to be signed. Another prerequisite is that the import of the raw material is of significant Swedish public interest. The guarantee holders are banks that offer financing.
As with other guarantees, EKN complies with internationally accepted standards for the projects’ environmental and social impact.
