Finnvera export financing explained

Finnvera export financing is Finland's official package of export credit guarantees, buyer credits and interest equalisation provided by Finnvera plc and its subsidiary Finnish Export Credit Ltd to support Finnish capital goods exports under national Finnish interest tests and OECD rules.

Finnvera is a state owned specialised financing company that supplements the financial market. As the export credit agency of Finland it gives guarantees against political or commercial risks associated with the financing of exports. Political risks arise from the economic or political situation in the buyer's country. Commercial risks pertain to the buyer or the buyer's bank. Finnvera is listed as a Berne Union member.

Institutional mandate and scale

Finnvera provides financing for the start, growth and internationalisation of enterprises and guarantees against risks arising from exports. Operations are steered by industrial and ownership policy goals laid down by the State. Finnvera is expected to adhere to the principle of economic self sustainability. Long term funding takes place by issuing notes on capital markets.

Published group figures as at 31 December 2025 include about 19,300 clients, 370 employees, EUR 2.1 billion of domestic loans and guarantees outstanding, and EUR 23.1 billion of export credit guarantees, export guarantees and special guarantees outstanding. Those figures describe portfolio scale. They are not underwriting standards for a single transaction.

Buyer credit guarantees

A Buyer Credit Guarantee is a security to the lender against credit risk caused by a foreign buyer, the buyer's bank or country. The exporter receives payment in cash for goods sold on credit, while credit risks transfer from the exporter to the lender and further to Finnvera. Coverage of commercial and/or political or sovereign risks is decided transaction by transaction.

The guarantee can support medium and long term arrangements for capital goods exports, including buyer credits for individual transactions, bank related and project related credit lines, ship financing, forfaiting and leasing. It can also support short term exports where the buyer provides a transferable credit instrument such as a bill of exchange or promissory note.

The export transaction must meet the requirement of Finnish interest. The borrower may be the buyer or the buyer's bank. Finnvera analyses borrower creditworthiness and country risk before deciding. For medium and long term credits, payment terms follow the OECD Arrangement. The guarantee is an export credit guarantee issued to the lender, not a private credit insurance policy on Finnvera's commercial account alone.

As an official ECA, Finnvera states that it cannot grant guarantees with a risk period of less than two years to listed Western industrial markets except where European Commission temporary permission applies.

Finnvera export financing through FEC credits

Export credit financing facilitates arrangement of financing for foreign buyers of Finnish capital goods and related services when the export benefits the Finnish economy and Finnish interest is fulfilled. Solutions include fixed or floating rate export and ship credits and interest equalisation for fixed rate credits.

Finnish Export Credit Ltd (FEC), a wholly owned subsidiary of Finnvera, can itself grant smaller export credits with a maximum value of EUR 20 million. For larger credits FEC cooperates with financial institutions under cooperation agreements. Financing may use CIRR rates quoted monthly by the OECD or floating rates, plus a margin.

Export Credit to the buyer is jointly offered by Finnvera and FEC, with FEC as lender and Finnvera as agent. A precondition is Finnvera's export guarantee. Published product terms include a maximum credit amount of EUR 20 million, or up to EUR 40 million for projects that meet Finnvera's sector specific climate criteria where the bank route with guarantees is considered first. The buyer must pay an advance of at least 15 percent, typically before first drawdown. Credits are typically repaid in equal semi annual instalments. CIRR must be applied for before the rate is locked.

Bank facing products and documentation

Finnvera's services to providers of export funding include the Buyer Credit Guarantee, Bill of Exchange Guarantee, Letter of Credit Guarantee and Bank Risk Guarantee. The Letter of Credit Guarantee protects a confirming bank against commercial and/or political and/or sovereign risks on the issuing bank. Local Currency Financing (LCF) guarantees can support buyer country currency financing where OECD Consensus terms apply and local markets meet convertibility and legal tests.

Premium on long term buyer credit guarantees is charged as a flat fee on principal and depends on borrower and country creditworthiness, risk period and securities. Handling fees apply to applications and guarantee issuance. Claims for indemnification are submitted by the guarantee holder in a signed written application.

Anti bribery declarations by the guarantee holder and the exporter, descriptions of origins in the export contract, and environmental assessment rules form part of application packs for medium and long term business. For heavily indebted poor countries, Finnvera states that guarantees are granted only for projects with a positive effect on social or economic development.

Buyer credit structures leave the bank as lender of record with Finnvera cover. Supplier credit structures leave the exporter as primary creditor where receivables or bills are financed or insured under other Finnvera products. Credit files identify the product, Finnish interest evidence, Arrangement applicability, covered percentage and claim conditions.

Boundaries

Finnvera is not a general corporate lender for every Finnish overseas activity. Domestic loans and guarantees are a separate book from export credit guarantees. Official support for export credits of two years or more is constrained by OECD Arrangement rules on down payment, repayment profile and minimum premium. Short term marketable risk cover remains subject to EU state aid boundaries for official insurers.

Ship financing and climate aligned larger tickets illustrate how product limits and cooperation with banks interact, but eligibility still turns on Finnish interest, Arrangement terms and guarantee capacity rather than on marketing labels alone.

Finnvera export financing is therefore Finnish official guarantee and credit capacity for eligible exports, delivered through Finnvera and FEC, documented for lenders and exporters under Finnish interest tests and OECD disciplines, and recognised internationally through Berne Union membership.