Export financing is about to be transformed – Finnvera aims to increase Finnish exports through networks
In recent years, politics and the economy have become increasingly intertwined. Geopolitics affects trade flows, and economic policy directs export trade instruments. While Finland is a small country, the volume of its export credit guarantee operations is large. Reliance on networks and active, agile operation to facilitate export transactions are Finnvera’s key means of bolstering Finnish export companies and Finland in global competition.
Recent trends and future prospects in export financing will be discussed on 10–12 June at the Global 2025: Export, Agency & Project Finance event in Copenhagen, which will bring together a large number of international export actors: banks, export credit agencies, development banks, insurers, export companies and state actors.
The role of export financing and export credit agencies in financing arrangements for export transactions is always highlighted in times of crisis, but in recent years there has been an active drive to assign public financing providers a larger role. Due to the rise of industrial policy, export credit agencies in many countries are seen more broadly as promotes of national interests and policies, for example in access to critical raw materials.
"While Finnvera and Finland are export credit guarantee actors with a large volume, we are still a small country. Our strength lies in covering the entire Finnish business sector from SMEs to large corporations. We are close to companies as promoters of exports. As we participate in trade negotiations with Finnish exporters, companies benefit from our expertise. The Team Finland network stretches across the world, which is a key advantage for a country the size of Finland,” says Jussi Haarasilta, Executive Vice President.
Haarasilta stresses that fair terms of export financing pursued by the OECD Export Credit Agreement are important for a country like Finland, but this consensus is challenged by recent trends. In order to support exports, it is essential to move with the times and stay competitive.
"Our impact is based on knowing our customers’ sectors and business and being able to flexibly find the best solutions for them in positive cooperation with providers of financing. We maintain close relations with global banks that arrange export credits and will certainly also have talks with them in Copenhagen."
Haarasilta will take part in a panel discussion on cruise shipping financing together with the Royal Caribbean Group, one of the largest cruise shipping companies in the world, and Carnival Corporation. The Italian shipping company Fincantieri and Italian providers of financing will also participate in this discussion. Cruise shipping is a dominant sector in Finnvera’s export credit guarantee operations and accounts for about one half of their outstanding commitments.
From traditional industries and markets to new prospects
In a situation of sluggish economic growth, it is important to look for new growth markets and sectors. In addition to green growth investments, the security and defence industry is also on the rise.
"Unlike many other countries, alongside an on a Finnish scale large enterprise we have several medium sized or smaller defence technology companies with special expertise in dual-use technologies. The green transition is also making headway, as is the energy transition. Finland has technological expertise, and we use our financing to encourage Finnish companies to be part of the solution to the climate challenge. Among other things, this is reflected in the terms and conditions of our financing," says Haarasilta.
In emerging markets, giant development and infrastructure projects create export potential. Finnvera works actively with international EPC contractors, through which Finnish companies can also get access to their projects.
"The plan is to continue discussions with EPC contractors on projects in sub-Saharan Africa and Asia. This will create significant opportunities for Finnish exporters, and Finnvera’s role in these transactions is to pave the way for companies by financing the EPC contractor’s customer. The Finnish offering to these projects is identified together with the government-owned trade promotion agency Business Finland", says Erno Ihto, a Trade Facilitator at Finnvera.
Development projects may have close links to cooperation between development banks and export credit agencies.
"Development banks traditionally aim to make an impact in the target country through their financing, whereas export credit agencies seek impact in the country of origin. Combining different interests has plenty of potential, for instance in climate projects. A good example of this is Sibanye-Stillwater’s Keliber lithium project, which Finnvera has been involved in financing. This project is relevant to both the green transition and production of critical raw materials," says Team Leader Satu Savelainen, who will take part in a panel discussion on the topic in Copenhagen.
Finnvera is one of the sponsors of the Global 2025 event in Copenhagen. The event is organised by the Exile Group, which consists of financial sector research and rating companies.
