Export development financing for sustainable development

EKN has been assigned by the Swedish government to administer export and development financing. EKN issues the guarantees and disburses the aid-funded portion. Svensk Exportkredit (SEK) provides the fixed-rate export credit, while private financial institutions arrange and administer the loan. Sida conducts the development assessment.

The work is carried out in close cooperation with other Team Sweden partners, whose experience and networks are essential to ensuring that the instrument supports both development and Swedish exports.

Projects in areas such as public transport, energy, waste management, rural telecom rollout, and water supply — that cannot be financed on purely commercial terms — may fall within the scope of the instrument.

The project must take place in a country where EKN can provide guarantees, primarily low- and middle-income countries. It should promote social and economic development and comply with OECD rules for tied aid, with at least a 35% subsidy. A commercial bank must arrange the export credit, which is then transferred to Svensk Exportkredit (SEK), offering a fixed interest rate, known as CIRR.

Export and development financing can only be used for transactions that would not take place without the aid component. Therefore, it is important to contact EKN and SEK early – before the deal is finalized or financing terms are set. Exporters and banks are subject to EKN’s and SEK’s standard terms and conditions, with necessary adjustments to comply with the regulation on export and development financing, and projects must also meet aid and sustainability requirements.

EKN, together with Sida, assesses whether the project complies with OECD rules for tied aid and the OECD DAC guidelines for the use of aid funds, while also ensuring that EU state aid requirements are met.

They can only be used to repay the export credit – instalments, interest, and credit-related costs – and the transaction must be arranged by a private financial institution, such as a bank. As a first priority, the aid component is intended to cover the interest portion.

The regulation entered into force on August 1, 2025. EKN is currently developing the procedures for the application process. Please visit EKN’s website for the latest updates.

The conditions for the aid funds are set out in an agreement between the aid recipient and EKN. The agreement specifies how the funds may be used, the repayment terms for the export credit, and the allocation of responsibilities between the parties.

Export and development financing always requires a Swedish export component, whereas Sida’s guarantees are not tied to Swedish exports.

All operations comply with OECD DAC guidelines as well as Swedish legislation on public access to information and secrecy. Reporting and openness are key requirements.