To buyers of goods and services from Swedish suppliers. International financing with EKN guarantees



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To buyers of goods and services from Swedish suppliers International financing with EKN guarantees

EKN is a Swedish state authority. This is a guide to doing business with EKN as a partner in your transaction. We are experienced in guaranteeing worldwide export transactions in all kinds of industries.

Secure your financing When doing business with a Swedish exporting company, an EKN guarantee can make all the difference. Working with EKN adds an extra level of confidence to any venture. It can be small or large transactions, long or short term credit periods as well as structured financing. This applies to all parties involved in the transaction. The Swedish exporter is certain of getting paid. The lender reduces its risk exposure. And you as a buyer of Swedish exported goods and services will gain better financing terms and conditions with the EKN guarantee as an extra security.

We are always open for sound business.

About EKN EKN is the Swedish export credit agency, a state authority that guarantees payment in international transactions to companies and banks. We comply with the regulations set by the EU, the OECD and other international guidelines which apply to all export credit agencies. EKN is a complement to the private insurance and financial markets. EKN issues guarantees for transactions in over 120 countries. BENEFITS OF THE GUARANTEE A guarantee from EKN enables the exporter to offer you as a buyer more flexible and competitive credit terms. EKN has long experience in assessing international credit risks. We work closely with exporters, banks and buyers. The EKN guarantee is a guarantee from the Kingdom of Sweden (AAA). An EKN financing solution enables larger credit lines with your bank. HOW THE GUARANTEE WORKS The guarantee provides secure and reliable protection against credit risk for the exporter or the lender. If the buyer does not pay as agreed, EKN works with the aim of finding a solution beneficial to all parties. If the exporter requests indemnification, EKN takes over the claim on the buyer.

Sustainability EKN promotes sustainability. EKN ensures that covered transactions have an acceptable social environmental impact. Before issuing guarantees EKN considers the environmental, human and social impact of the project or buying company. Corruption is not accepted. Transactions covered by EKN are subject to an environmental and social screening. Factors considered in the screening when identifying the need for a more indepth assessment, are for example country and type of industry, new projects, sensitive environment and social impact such as involuntary resettlement, impact on indigenous people, working conditions. The information required in the assessment is either an environmental and social impact assessment, other environmental or social documents or other information directly from the buyer and/or project. The assessment addresses how the buyer manages environmental impact, employees and the community. For example, if there has been workplace accidents a focus will be on how similar situations will be prevented from happening again. Environmental risks are business risks. Most risks can be managed if proper policies and systems are developed. Therefore EKN needs to know how you as a buyer systematically prevent identified environmental and social risks.

Most risks can be managed if proper policies and systems are developed.

Creating structured and efficient processes together.

How to work with EKN There are a number of things that you as a buyer can do to speed up the process. One of the most important actions is to provide the exporter with all the necessary documentation as early as possible in the process of your transaction. 1. DOCUMENTATION NEEDED EKN needs the following documentation: Audited financial statement from your company, and if your company is part of a group, consolidated statements are needed as well. Information on environmental and social conditions or effects. 2. Information such as project descriptions, business analyses, etc. ADDITIONAL DOCUMENTATION MAY BE NEEDED If you represent a rental or leasing company, include a breakdown of accounts receivable in key exposures. If you represent a newly established company, information and documentation needed will be specified individually. However, minimum requirements include a cash flow projection for the whole credit period and a business plan. If payment is guaranteed by another party, information requirements also apply to the guarantor. The number and type of documents needed varies from case to case. If you have any questions about this, please ask the exporter or the lender to contact EKN.

3. 4. ADVANCE PAYMENTS According to OECD regulations, for credit terms of 24 months or longer, a minimum advance payment of 15 percent is required. CORPORATE RESPONSIBILITY AREAS THAT EKN MIGHT ASK QUESTIONS ABOUT Environmental and social policies and management systems. Labour rights and working conditions such as child labour, forced labour, discrimination, freedom of association, occupational health and safety etc. Resource efficiency and waste management, effluent treatment and emissions. Community health, safety and security. Involuntary resettlement, impact on indigenous peoples and cultural heritage. Biodiversity and conservation of living natural resources. In larger projects, EKN might ask for an Environmental and Social Impact Assessment (ESIA).

As a buyer, your main contact with EKN will be through the exporter. For more information on EKN and our services, please visit www.ekn.se

Environmental certified printed matter 341 001 Gracemill Communication 2014-06 EKN CREATING CONFIDENCE IN YOUR EXPORTS EKN is a government agency that supports Swedish exports and the internationalisation of Swedish industry. This we do by offering exporting companies and banks guarantees for payment and financing, together with advice on business structure and risk management. Our services provide an extra level of confidence, increased competitiveness and more opportunities for successful export transactions. The Swedish Export Credits Guarantee Board Kungsgatan 36, P.O. Box 3064, SE-103 61 Stockholm Telephone +46 8 788 00 00 www.ekn.se