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September 21, 2022

Swedish Export Credit Corporation finances industry’s transition

Jens Hedar explains. “We have a distinct mission, particularly in the industrial sector”

To reach the target of zero net GHG emissions by 2045, major investments are required for the transition, particularly in the industrial sector. The Swedish Export Credit Corporation (SEK) is tasked by the government to finance the Swedish export industry and to be a positive force for climate change.

Many companies are actively working to realign their operations to reduce carbon dioxide emissions. How can SEK assist with these efforts?

“We harness our extensive experience of financing major renewable energy and infrastructure projects abroad as we finance projects in Sweden. These are often projects that require long-term financing and the ability to manage project risks and thorough sustainability analyses. This is our area of expertise,” says Jens Hedar, Head of Client Relations at SEK.

The Swedish Export Credit Corporation is associated with export transactions, which companies can obtain loans from you?

“We finance Swedish exporters, their subsidiaries, and foreign customers. The target group is companies with annual sales of over SEK 500 million.”

…and what type of transactions are these linked to?

“It could be financing to invest in a new facility, increase production or make an acquisition. Some customers want to broaden their financing base and not have every loan with the same bank. We also offer financing to buyers of Swedish goods and services, with everything from shorter maturities to long-term solutions such as export credits and project financing.”

What’s the difference when taking out a loan from SEK compared with other banks?

“What distinguishes SEK from other financiers is that we are state-owned and have a distinct mission. We offer competitive financial solutions that strengthen the Swedish export industry. More Swedish exports create more jobs and increased growth. We frequently work with Swedish and foreign banks, partly through co-financing transactions or sharing risk.”

Not only do we hear about sustainable products nowadays, but also sustainable finance, what does this mean?

“There are various sustainable finance solutions, but the most important thing is that it concerns steering financing toward projects and companies that have a clear plan in line with the climate transition. SEK offers green, social and sustainability-linked loans. Green loans are what the name suggests. Social loans are designed for social responsibility, often in developing countries. Financing can be connected to healthcare, education or food safety. Sustainability-linked loans are connected to the borrower’s own important sustainability targets, such as reduced energy consumption or fewer workplace accidents.

The transition of Swedish industry is a driving force for new climate-smart innovations and business opportunities, and a way for the Swedish export industry to remain competitive,” concludes Jens Hedar.