Project risk

Finnvera's key criteria in assessing the commercial risks typically associated with projects are:

• A separate or special purpose company (SPC) is set up for the project. Repayment of this SPC debt is based primarily on cash flows generated by the investment in the future.
• The project must be profitable and its long-term cash-flow indications have to meet the debt servicing costs under all conditions.
• The project must have a security package that can be shared by Finnvera with other lenders on the pro rata and pari passu basis.
• The equity portion of the project should be at least 30%.
• Finnvera's guarantee can provide coverage for a maximum of 50% of all the debt associated with the project.
• Other export credit agencies and credit institutions should agree to share the risks associated with the project.
• The maximum investment amount to be covered by Finnvera's share, provided that the risk-sharing principle is in place, is EUR 100 million.
• The minimum investment covered is usually EUR 10 million. As a prerequisite Finnvera expects that a feasibility study has been conducted for projects of this magnitude.
• Finnvera can also require additional guarantees from the project's sponsor.

In order to be able fully to evaluate the commercial viability of investment projects, Finnvera needs the information mentioned i a checklist. This information considerably facilitates the process of handling the application