Buyer credit

Your situation

You are an Austrian company that exports capital goods or complete plants and related services. You want to conclude an export contract with your customer abroad and need coverage in case your client does not fulfil their obligations, whether for commercial or political reasons. In addition, you would like to shift the non-payment risk to your bank to enable them to offer your client attractive financing.

Alternatively, you are the exporter's bank and wish to offer attractive financing conditions for their project. You are in a position to provide your exporter's client with a buyer credit and need insurance and attractive funding to do so.
 

Our service: buyer credit/tied financial credit covered by an export guarantee

As an exporter, you can offer your customer abroad attractive financing for their purchases using a buyer credit and ensure your liquidity from the very beginning by drawing on the loan, irrespective of their subsequent repayments.

With a G3 export guarantee, we create a solid basis for a buyer credit. The essential condition is that the credit is used to pay for Austrian deliveries and services. A classic example is a medium to long-term financing with a credit period of five to ten years for a large Austrian machinery export. So it does not matter whether your bank is the lender for your customer abroad or if it grants the credit to the customer's bank for them to lend to the customer (i.e. bank to bank credit).

Sizeable project-based transactions may be structured on a project finance basis. Such projects are usually financed without relying on a typical "bank-based" security, i.e. a bank guarantee or a sovereign guarantee. The main security is the anticipated cash flow generated from future proceeds of the project.

In the checklist you will find a list of information and documents we need in order to be able to review project finance applications. The earlier you contact us, the better we can assist you.

Checklist

This is how G3 covers a buyer credit

When your bank offers a buyer credit to your customer abroad or their bank, your bank will also bear the non-payment risk. A G3 guarantee takes a large part of your bank’s risk. The guarantee fee can be included in the credit contract value and thus be covered by the insurance and financed.

Here you can see a list of countries to which a G3 guarantee can be offered.

• COUNTRY INFORMATION

The G3 guarantee minimises the non-payment risk and therefore considerably reduces financing costs. So it does not matter whether your bank is the lender for your customer abroad or if it grants the credit to the customer's bank for them to lend to the customer (i.e. bank to bank credit).

The costs

Attractive refinancing of banks for a buyer credit with an export guarantee

We offer very attractive financing instruments through domestic and foreign commercial banks based on your protection. The interest rate depends on the financing requirements.

Interest rates for individual financing
 

We offer financing in euros and foreign currencies.

Here you can find an overview of current interest rates.

• Interest rates

The interest rate is based on the planned duration and structure of the credit disbursements and repayments, and can be calculated easily using the OeKB Loan Pricer on my.oekb.

• OeKB Loan Pricer