A well-designed risk management strategy is essential if you wish to have successful foreign investments. An important part of this is an investment guarantee covering the political risk of your investments, even in difficult markets. An investment guarantee is the basis for attractive financing for your bank as part of the risk is assumed.

Fact sheet on guarantee for investments abroad

Learn in our short video how we can help you with financing und covering risks of foreign investments within your investment activities (only in German).

Your situation

You are an Austrian company, and want to purchase shares in an already existing foreign company or one yet to be founded, or you are giving a shareholder loan. You want to cover your investments against political risks in the target country.

Our service:  Security with an investment guarantee

With the G4 investment guarantee you can cover yourself against the risk that you will no longer be able to run your company abroad for political reasons and against being expropriated. The guarantee offers a high coverage ratio of up to 100% of the book value of your investments.

The perfect combination: The G4 guarantee with a guarantee by aval

In addition to the coverage of political risk abroad with the G4 guarantee, you can also reduce commercial risk at home with a guarantee by aval to provide an optimal basis for your financing. We offer the combined guarantee by aval/G4 product in order to keep the administrative effort and the costs to a minimum.

Here you can find further information on “Financing foreign investments".

Covering the political risk of your foreign investments with the G4 guarantee.
Covering the political risk of your foreign investments with the G4 guarantee.

What can be covered?

The G4 investment guarantee is intended for markets where there is political risk, generally non-OECD and non-EU countries.

Country information

If your target country is eligible for the G4 guarantee, minority holdings as well as investments where you have a majority shareholding or 100% ownership can be covered, irrespective of whether you are investing capital or making contributions in kind.

Investments in equity as well as shareholder loans that have to be repaid can be supported.

Which risks are covered?

In the event of a claim, the guarantee G4 covers up to 100% of your losses attributable to political reasons, depending on the investment target country.

This is specifically the case if:

  • Your participation rights or claims from the loan are withdrawn without appropriate compensation, for example due to nationalisation or expropriation.
  • Assets of your subsidiary are destroyed, for example due to war or revolution, meaning that the company cannot be run any longer without making a loss.
  • The free availability of income or loan repayments or their transfer are restricted.

Positive effect on Austria’s current account balance

Foreign investments by Austrian companies usually have a positive effect on the Austrian current account balance. This prospective benefit is a prerequisite for assuming risk with an investment guarantee.

Criteria for evaluating the effect on the current account balance

  • You are aiming to expand the exporting of your Austrian-made products.
  • You are trying to reduce your costs and remain internationally competitive by outsourcing manufacturing steps.
  • You are in a position to sell your know-how and/or collect licence fees.
  • You expect profits or dividends from your participation.

Coverage of foreign investments against commercial risk

Commercial risk, such as the expected market success not materialising, bankruptcy of the foreign participation, or devaluation of the local currency, are not covered by a G4 guarantee. You might want to consider the Austria Wirtschaftsservice GmbH (aws) as your partner for covering commercial risk.

aws – Austria Wirtschaftsservice Gesellschaft mbH

Ungargasse 37, 1030 Vienna, Tel.: +43 (0)1 50175-0, office@awsg.at, www.awsg.at

Your benefits

We offer high cover ratios of up to 100%, depending on the target country.

The G4 guarantee offers excellent value for a relatively low premium.

Terms of up to 25 years and politically difficult countries can be covered.

The costs

Handling fee 0.1% of the sum insured
(minimum 10 euros, maximum 720 euros)
Premium
 
0.2-1% p.a
The premium depends on the OECD classification of the target country.
Country information
 

 

How to get coverage your foreign investments

  1. You make an application, ideally online on my.oekb, or in writing, by post or e-mail.
  2. We evaluate the application and submit it to the advisory board.
  3. After receiving approval from the advisory board, the Republic of Austria assumes liability and you get your export guarantee.
  4. Benefit from our attractive financing conditions.

As an exporter, you can apply for your guarantee for deliveries and services directly from us. You can make the application online on my.oekb or download, fill in and send the forms by post or by email to the Export Services Service Centre.

Please also take note of our general business conditions.

Application form for the G4 guarantee (only in German)
General business conditions for G4 participation guarantees
Application form for the combined G4 guarantee with aval (only in German)
Notice of assignment

Additional forms

If you are already an OeKB customer, you may not need the forms below if you have already submitted them to us for previous export guarantee applications.

If you are a new customer, as a service we offer you all forms that are required for the guarantee application, such as the confirmation of acknowledgement of the general business conditions or generally useful documents such as the form for the SEPA direct debit mandate. 

Our Service Centre is happy to advise you as to which forms you need in addition.

Acknowledgement of G4 general business conditions (only in German)
SEPA direct debit mandate

Apply for export guarantees conveniently online

Using my.oekb, you can apply for and manage export guarantees online. If you already have general access to my.oekb, you only need to apply for access to the Online export guarantees service. If you do not have access yet, simply register online here: Online registration Export Services

Any more questions?

If you require more detailed information or an individual consultation, please do not hesitate to contact us.

Client Advisory Export Services
T +43 1 53127-2600
exportservices@oekb.at

Attractive financing for foreign investments

With the combined Aval/G4 guarantee, you optimise the financing of your foreign investments.

In addition to covering your investment, we can also offer you attractive financing for your investment project using the funds in the export financing scheme.
Find out more now!

Claim processing

If a foreign investment that you have covered with a federal guarantee gets into trouble, please contact us immediately.
Find out more now!