Authorizations and exposure (export finance)

• Credit risk guarantee: Covers the risks due to cancellation of the delivery contract during the manufacturing period and/or commercial risks due to receivables from a foreign buyer
• Cover:
• Comprehensive cover up to 90% (for individual export transactions, may be increased to 95%)
• Political risk cover up to 100%
• Receivables purchase guarantee: The guarantee protects banks against credit risks when the bank purchases invoice receivables from the exporter in connection with foreign trade
• Cover up to 90%
• Typically suited to continuous deliveries or a one-off transaction that has a short payment period
• Bank risk guarantee: Protects the bank of a Finnish export company against risks involved in bank guarantees given to the exporter to secure payment of the purchase price.
• Needs to be counter-guaranteed by the Buyer’s bank
• Cover up to 95% (normal coverage), 50% (risk-sharing scheme)
• Letter of credit guarantee: Protects a bank from commercial and/or political and/or sovereign risks related to a confirmed LC
• Cover up to 95% (normal coverage), 50% (risk-sharing scheme)
• Bill of exchange guarantee: Secures the lender against credit risks arising when the lender purchases a bill of exchange from the exporter
• Cover: 90% for credit period less than 1 year for continuous exports, 95% otherwise
• Guarantees of less than EUR 2 million issued without any security requirements
• In general, financing is not available for exports to subsidiaries or associated companies. If the exporter is a domestic parent company and the end client is a buyer outside the Group, exports may also take place via a subsidiary or an associated company

• Can be used for various medium/long-term credit arrangements in connection with financing of the export of capital goods
• Can also be used for short-term exports if the buyer provides the exporter with a transferable credit instrument, e.a. bill of exchange or promissory note as payment
• The borrower may be either the buyer or the buyer’s bank
• Cover:
• 95% for commercial risk
• 100% for political risk
• Tenors as per the OECD arrangement
• Local currency guarantees are available
• Export and ship credits and interest equalization: Fixed or floating interest rate Export and Ship Credits and their financing, interest equalization for fixed interest rate credits
• Financing of export credits can be either fixed interest rates (CIRR rate quoted monthly by the OECD) or floating interest rates. In addition to these, a margin is added to the price.

• Export guarantee: Pre-delivery or post-delivery financing for working capital from a bank
• Can also serve as countersecurity for a bank when a bond is given in favour of a foreign buyer (a bid bond, an advance payment bond, a performance bond or a warranty period bond)
• No limits are applied to the size of eligible projects
• Finance guarantee:
• Security for financing during the manufacturing period or after delivery, and can be used for export transactions with either short-term or medium/long-term payment terms
• Maximum cover of 80%

• Limited to buyers in a limited list of countries
• Preconditions:
• Maximum credit amount is EUR 20 million.
• Up to 2 years maturity
• Credit currencies are EUR, USD or, on a case-by-case basis
• Floating or fixed rate credit are available
• The buyer must pay to the exporter an advance payment of at least 15%, typically before the first drawdown of the credit
• Finnish Export Credit Ltd. (a 100%-owned subsidiary of Finnvera) acts as a lender and Finnvera as an agent

• Bond guarantee: Counter security for the bank issuing a bond on behalf of the exporter in favor of a foreign buyer.
• An exporter can use the Bond Guarantee to cover the risk of unfair calling of the bond (90% coverage) or calling for political reasons (95% coverage)
• Start guarantee:
• Helps new SMEs to obtain bank financing for various investment and working capital needs
• Intended for newly launched enterprises that are owned by private individuals and meet the SME definition applied by the EU
• No more than three years has passed since borrower's entry into the Trade Register
• Finnvera guarantee: Serves as a partial collateral for a bank loan
• Finnvera loan: Helps SMEs to finance domestic construction, machinery and equipment investments, energy and environmental projects, working capital needs and various ownership arrangements
• Entrepeneur loan: Personal loan granted to an entrepreneur that may be used, for example, for acquiring shares in a public limited company or making an investment in the share capital
• Growth loan: Debt-based mezzanine financing product whose preference and other terms are negotiated jointly with the financiers who provide senior financing for a project
• Internationalization loans and guarantees: Target investments, development or financing for growth for a Finnish SME’s subsidiary, associated company or branch office that has been, or is planned to be, established abroad
• Borrowers must have fewer than 250 employees and the annual turnover no more than EUR 50 million or the balance sheet total of EUR 43 million, at a maximum
• Loans: Tenor up to 10 years
• Special programs include ship guarantees, digitalization and innovation loans and climate and environmental loans
• Other products include bond financing and bridge financing

• Export transactions must meet the requirement of Finnish interest
• The Finnish content is considered significant if it accounts for more than 27% of the export project’s value (including local costs) or 33% of the export credit amount
• If the export transaction does not meet the requirement for Finnish content Finnish interest may still be met under certain conditions

• 2023: As part of Finland’s national reconstruction plan for Ukraine, Finnvera will resume granting export credit guarantees from 1 January 2024

• 2023: The maximum amount of de minimis aid per group is EUR 300,000 over a three-year period. In the fisheries sector, the amount is EUR 30,000 over a three-year period.