The Eksport Kredit Fond (EKF) is a Danish state owned institution with the objective to ensure competitive financial conditions for Danish business and industry participating in international markets.

When a company provides credit to its customers for exported goods and services there is a certain amount of risk, and thus creates a need for financing to cover the risk through an export guarantee and credit insurance. EKF offers a number of different financial products to suit the needs of the client that includes export credit guarantees, export loans, investment guarantees, pre-shipment and project delivery guarantees, climate guarantees, reinsurance and project finance. The products are typically used in conjunction with project exports or credit sale of goods and equipment in connection with Danish exports.

Project finance can often be interesting for agricultural projects abroad as project finance is often used in connection with investment where a significant amount will be in the form of a loan over a number of years. Project financing is generally based solely on the projects own assets and cash flow and combines both own capital (typically 20-40%) and loan (typically 60-80%) funds. The project is based on a solid and detailed business plan that EKF and the loan giver go through thoroughly in a “Due Diligence” process. The role of EKF in the provision of project finance is very similar to the role of the loan giver. EFK participates however not as the loan giver but guarantees a part of the debt which therefore becomes secure for the loan giver. EKF typically guarantees between 30-80% of the project loan. It is often banks that provide the loan. EKF guarantee an equally large part of the commercial and political risks as the bank.

EKF has furthermore the possibility to guarantee up to 30% of the project loan in relation to local infrastructure and equipment, for example.

Read more at: www.ekf.dk