Strategic Investments Financing

This policy covers financing banks against the risk of non-payment of a loan granted to a Company wishing to undertake an investment in Spain

This new product aims to promote financing for investments in Spain in strategic projects which are expected to contribute to the internationalisation of Spanish companies in the future.

The financing does not need to be linked to an ongoing export contract, although there are eligibility requirements related to the historical export performance of the borrower, the sponsor or the investment project to be financed.

Eligible projects include high value R&D investment in areas such as innovation in generation of renewable energies, green vehicle, energy storage, green hydrogen, or any export oriented project that may contribute to climate change fight.

Submit your project and we will give you an indication of its eligibility.

The Insured Party and the Policyholder will always be the financing Bank

Applications for cover can be submitted either by the bank or by the sponsor or borrower companies, in case the bank has not yet been appointed..

In the event the cover application is submitted by the company, Cesce would issue an indicative offer. This offer can be assigned to the bank, once appointed, which can then request directly the issuance of the policy.
 

The insurance covers the risk of non-payment of the loan

The insurance policy covers the total or partial non-payment of the credit, whether it occurs as a result of the de-facto insolvency (protracted default for a period of more than 90 days) or de-iure insolvency (e. g. bankruptcy) of the borrower and, where applicable, of the Guarantor.

Cesce’s insurance may cover up to a maximum of 80% of the loan (principal, interest, default interest).

The projects falling within the following areas are considered strategic, without detriment to the individual analysis of each operation.

1. Development of electric, connected vehicles, as well as batteries, to allow the creation of the necessary ecosystem for these vehicles.

2. Cutting-edge health, through the incorporation of new technologies for diagnostics, treatment and disease prevention, in addition to the application of innovation in the patient service point.

3. Renewable energy, renewable hydrogen and storage. The aim is to maximise the opportunities in the transition to a carbon-neutral economy.

4. Circular economy. The purpose of the projects must be to accelerate the transition from the linear economic model towards circular economy, guarantee the sustainability of the planet and increase efficiency and competitiveness in the production sectors.

5. Naval. The aim is to support the diversification, modernisation and productivity of the Spanish shipbuilding ecosystem.

6. Digitalisation of the water cycle. The project must improve sustainable management, infrastructures and access to a safe, reliable, affordable water supply, together with appropriate sanitation services through the digitalisation of the sector.

7. Aerospace. The project should generate and improve the technological and industrial capacities and improve the strategic positioning of the industry in the aeronautical and aerospace sector.

8. Microelectronics and semiconductors. Seeking to develop an ecosystem for the design and manufacturing of semiconductors based in Spain, as well as contributing to strategic European autonomy.

9. Construction of facilities dedicated to the extraction, recycling and/or refining of ores or minerals when the product resulting from these processes forms part of the supply chain for projects that are considered strategic for the green transition and digital transformation.

10. Other operations that imply the development of cutting-edge technology, as well as R+D processes in different sectors.
 

There are no limits (maximum or minimum) on the amount per transaction

The maximum amount covered will be limited by the size of the investment to be financed as well as by the creditworthiness of the debtor company –or its guarantor- and its ability to pay.

Insurance price is aligned with banks’ prices

Cesce’s premium is determined on the basis of the price charged by the insured bank, which must declare the ordinary interest rate applied in the loan as well as its general funding costs at the time of the application for cover.

The premium is calculated by subtracting the funding cost from the ordinary interest rate. A surcharge of 5% will be applied to the resulting amount.

Example
Interest rate: 1,5%
Funding Cost: 0,3%
Base rate for premium calculation: 1,2%
Premium (base rate+ surcharge of 5%): 1,26%

Please to send your application, which will be examined and analysed

• After receiving an application, Cesce analyses the risk associated with the requested cover, based on the information provided by the insured party.
   
• The risk analysis examines the creditworthiness of the borrower or, if applicable, of the guarantor. In the case of a non-recourse finance (project finance), due diligence required will be the customary for such type of structures.
   

• Si esta empresa tiene una calificación crediticia favorable de Inbonis rating, se agilizan y acortan los tiempos de estudio, ya que Cesce reconoce las calificaciones de esta agencia.

• The study also examines the nature of the investment, its strategic nature as well as its potential impact on future exports, either of the company itself or of its clients –in cases where the investment produces an intermediate good or input for strategic industries for internationalisation.
• Once the risk has been analysed, Cesce submits a proposal to the decision-making body. If approved, Cesce will issue an offer indicating cover terms and conditions. If the insured party accepts the offer, the policy will be issued and formalised once it has been signed by the insured and the premium has been paid.

If you are interested in this product, please fill in and email the application form to cuentadelestado@cesce.es. 

If you have any questions, please call +34 91 193 19 99 or send us your details, and we will contact you.