Empowering export finance for the energy transition

Welcome to EKN, Lena – who are you?

First and foremost, I am a banker. I have most recently worked as Head of ESG Finance and Advisory and Global Head of Industrials and TMT at Swedbank, and before that in different roles at SEK, RBS, ABN Amro and Handelsbanken, which included many years within export and project financing.

You have just visited the TXF Global 2024 Export, Agency and Project Finance venue in Athens – what’s your takeaway?

That the global heads of export finance at international banks anticipates that Europe will take centre stage in many respects, particularly related to the investment need.

The sheer size of the transitional investments calls for risk coverage, not just in developing markets but in high-income OECD countries too, a category that has grown to represent a lion’s share of EKN’s portfolio. It became very clear in Athens that we need more collaboration between ECAs in terms of reinsurance to cover large amounts. If we share the risk amongst us, we can do so much more.

Which industrial sectors in Sweden are particularly well placed to contribute to the transition?

Fossil-free steel, batteries enabling non-fossil transport, carbon-free cement, non-fossil fuels, electric mining, telecom, textile recycling, waste management, to name but a few. As for the energy sector, renewable production and grid modernisation and expansion will in turn require equipment where Sweden-based suppliers are particularly strong, such as converter stations and high-voltage cables.

How do you plan for EKN to stimulate and sharpen the competitive edge of Swedish industry, particularly in transitional technology?

We will, together with our partners in Team Sweden continue to promote sourcing from Sweden in international sustainable infrastructure projects by identifying sustainable Swedish value chains that, combined, could offer a unique proposition to investors in different parts of the world.

What’s most exciting about your new job at EKN?

The opportunity to support Swedish exports and continuing to strengthen the competitiveness of Swedish companies with their valuable contributions to the green transition. Today we see an increased interest also among international banks to finance new industrial initiatives being pursued in Sweden by companies that aim to become large export industries in the future.

Describe your first nine months.

It's been full speed ahead, to say the least. EKN has never before seen such demand for export guarantees as we do today. Last year, the total volume of guarantees amounted to a record SEK 96 billion, and we have outstanding guarantees in 140 countries.

Having worked with EKN as a partner from the banking side, what’s your impression as an “EKN insider”?

At EKN, I became very impressed with the large number of transactions EKN is able to handle and process with a relatively small organisation. I am proud to share the pride of my competent colleagues, including a team of country analysts that go beyond what most commercial banks can match.

You have been in finance for over 30 years. Can you describe how the role of export finance has changed over time?

After the year 2000 and up until the financial crisis, participants at industry gatherings were discussing whether export finance as such had any future at all, or if it was about to become obsolete. The bond markets were highly liquid, and financing was never an issue.

Today, however, the need for massive investments to combat climate change requires funding on a scale not seen in a long time. All of a sudden, export credits are highly coveted.

How would you say the risk scenario has changed?

A more detailed risk assessment related to the new industries and sometimes untried technologies is required. Financing of these often large-scale projects must come from several sources, including ECAs, development finance institutions and commercial lenders.

Finally, what’s your message to exporters, EPCs and banking partners?

To continue to have an open dialogue on competitiveness including product development in order to ensure that EKN is at the forefront in supporting Swedish industry. It’s all about partnership.