Banks using Finnvera’s Buyer Credit Guarantee can refinance the underlying buyer credit or part of the credit in the capital market based on Finnvera’s Refinancing Guarantee.
First a bank provides an export credit to a borrower and gets a Buyer Credit Guarantee against credit risks from Finnvera. Then the bank applies for a Refinancing Guarantee in favour of a financing institution providing refinancing. The Bank and the provider of refinancing then agree on refinancing the original export credit, and under its Refinancing Guarantee Scheme Finnvera issues a 100% Refinancing Guarantee in favour of the provider of refinancing.
The refinancing arrangement is an alternative for the Finnish Export Credit´s funding model.