Institution details
Swedish Export Credit Corporation (SEK) (SEK)
Key facts
- Established in 1962
- Ownership: Public
Not Part of the OECD
Not part of the Berne Union
- Klarabergsviadukten 61-63
- +46 8 613 83 00
- https://www.sek.se
Latest update: 03/12/2021
rating type | rating agency | type | rating |
---|---|---|---|
Institution rating | S&P | Foreign currency | AA+ |
Country rating | S&P | Local currency | AA+ |
Products
- Export financing
- Corporate lending
- Other products
Export Financing
- SEK provides long term funding for Swedish export-related transactions
- Typically used for medium and large transactions with long repayment tenors; can also be used for medium-term loans
- Eligibility:
- Financing usually involves a commercial bank as the arranger, and the bank, or a group of banks; also administers a loan to the foreign buyer
- EKN is the guarantor, taking the repayment risk with a small portion of the risk retained by the arranging bank
- SEK provides funding, and sometimes assumes the role as arranger and shares the residual risk, usually jointly with one or more banks
- SEK manages the state-supported CIRR system on behalf of the Swedish government
- SEK accepts other ECAs if there is Swedish interest "
Corporate Lending
- SEK offers loans directly to Swedish exporters and exporters’ subsidiaries used to facilitate continued growth or capital expenditure
- Financing for foreign holding companies, if loan proceeds are used in the Swedish operations
- Tenor: Average of 5 years
- Currency: SEK, EUR, USD, and selected local currencies (e.g., MXN and TRY)
Other Products
- Project finance:
- SEK may participate in structures where the sole asset is the project or in structures combining commercial loans and coverage from ECAs
- Tenor: Long-term
- Eligibility: Swedish exporter must be involved as a subcontractor, supplier, or project sponsor
- Modalities: Senior loans, leasing, renting, or participation in bond structures" - Receivables financing (or discounting) for Swedish exporters
- Contract guarantees: Supports Swedish exporters’ advance payment or performance bonds
Performance highlights
What's new?
- In an effort to better meet client needs, SEK split its lending business area into two separate functions, Large Corporates and Mid Corporates, so that clients and transactions can be more closely connected with SEK executive management
- Target recipients are the 1,000 largest Swedish exporters with sales greater than SEK 500 million
- OECD-compliant for ECA backed transactions and CIRR facilities
- Eligible content: SEK participation requires some form of Swedish interest but not necessarily directly linked to a Swedish export
- SEK’s business model minimizes refinancing risk
- Financing offered in all major currencies and selected emerging market currencies
- Sustainability framework requires sustainability targets, strategies, and reporting, including via the OECD (e.g., anti-bribery and anti-corruption), Equator Principles, IFC performance standards, and the UN Global Compact
- SEK can support smaller export finance transactions on a case-by-case basis