Project financing
SEK provides project financing for international projects involving Swedish exports. Swedish export companies can participate as subcontractors, suppliers or sponsors, while SEK provides financing through senior loans, leasing or bond investments.
Project finance is a financing structure used for large-scale investments where the project’s future revenues and assets form the basis for financing. Unlike traditional corporate financing, the focus is on the project’s financial viability rather than the sponsor’s balance sheet.
This form of financing is commonly used for infrastructure, energy, telecommunications, real estate, industrial facilities and other capital-intensive projects with long investment horizons. Project finance can enable investments that may be difficult to realise through corporate financing or equity alone.
For Swedish export companies, project finance can be an important tool for executing international business transactions and strengthening competitiveness in global markets.
What types of projects can be financed?
Project finance is used across a variety of sectors, including:
- Energy and renewable energy
- Infrastructure and transportation
- Industrial and manufacturing facilities
- Real estate and urban development projects
- Telecommunications and digital infrastructure
- Water, environmental and sustainability projects
Each project is assessed individually based on its commercial, financial and sustainability-related merits.
How does project finance work?
In a project finance transaction, a separate project company is typically established to own and operate the project and assume the related financing obligations. Repayment is primarily based on the project’s future cash flows, which means lenders undertake a comprehensive assessment of the project’s technical, commercial and financial fundamentals.
Because financing is closely linked to the project’s performance, project finance transactions often involve multiple lenders, export credit agencies, investors and commercial banks. A well-structured financing solution can help mitigate risks for all parties while creating conditions for long-term growth.
SEK as a partner in project finance
SEK can participate in financing structures where the project itself serves as the primary security, both through direct financing and in collaboration with banks, export credit agencies and other financial institutions.
We provide long-term financing and aim to remain involved throughout the life of the project. Drawing on our experience of international business and complex financing structures, we help create stable financing solutions, including in markets where funding requirements are substantial.
Our financing capacity is supported by a strong credit rating, an established presence in the international capital markets and state ownership. This enables Swedish export companies to benefit from a financial partner with extensive experience in supporting Swedish exports and investments around the world.
Project finance for export transactions
When Swedish companies supply equipment, technology or services to large international projects, project finance can be a critical component of the transaction. Access to financing can enhance the competitiveness of an offer and help make the project commercially viable.
SEK can participate in financing solutions where Swedish exporters are involved as suppliers, subcontractors or sponsors. By combining different financing instruments, we can support projects across a wide range of industries and geographic markets.
Do you want to know more?
Per Edlundh, Director Export and Project Finance
Project Finance at SEK: Financing Solutions and Eligibility Requirements
SEK can provide financing for a wide range of projects involving a Swedish export company as a supplier, subcontractor or sponsor.
Financing can be provided through:
- Loans
- Leasing
- Rental financing
- Participation in bond issuances
SEK can participate throughout the entire project lifecycle and is often part of a broader financing structure involving banks, investors and export credit agencies.
FAQ
What is project finance?
Project finance is a financing structure in which repayment is primarily based on the project’s future cash flows and assets rather than on the sponsors’ balance sheets.
When is project finance used?
Project finance is commonly used for large-scale investments in energy, infrastructure, real estate, industrial facilities and other capital-intensive projects that require long-term financing.
Can SEK finance international projects?
Yes. SEK can participate in financing solutions for international projects involving Swedish export interests, for example through the supply of goods, services or technology.
What are the requirements for obtaining project finance?
A project must demonstrate strong commercial and financial fundamentals. A key requirement for SEK is the involvement of a Swedish export company in the project.
How does project finance differ from corporate finance?
In corporate finance, the credit assessment is primarily based on a company’s balance sheet and repayment capacity. In project finance, the focus is instead on the project’s own assets, contractual arrangements and future cash flows.