Finnish companies can insure the investments they have made abroad against political risks arising from the host country and, in special cases, against commercial risks. If a bank has provided a loan to finance an investment, Finnvera can cover the political risk associated with the investment by granting an Investment Guarantee to the bank.
The investment can apply to an enterprise being established or already in existence. It must promote economic development in both the host country and Finland.
Products
An Investment Guarantee can be used by a Finnish investor to insure foreign investments against political risks. The coverage is normally 95%. The coverage for Investment Guarantees provided to cover bank loans is 100%. In special cases also commercial risks can be covered.
Forms of investment which can be covered by the guarantee include equity investments, shareholder loans and guarantees granted by a shareholder. Subject to certain conditions, a bank granting an investment loan can also obtain a guarantee. Investments can be made either in an existing company or in a company being set up.
The investor must be domiciled in Finland and must have adequate resources for implementing the investment. The investor can also be a foreign company controlled by a Finnish company.
Attachments
Brochure (PDF)
General Conditions, Loan (PDF)
General Conditions, Equity (PDF)
General Conditions, Non-Shareholder (PDF)