Eksport Kredit Fonden, the Danish Export Credit Agency, has introduced a new securitisation guarantee as a solution for a bank in favour of which the Danish Government has already granted buyer credit cover to obtain refinancing at favourable terms on the capital market via a special purpose vehicle (SPV) or a mortgage bank, including a Pfandbrief Bank.
The EKF Securitisation Guarantee provides a full guarantee backed by the Kingdom of Denmark where the lending bank refinances export credit loans. Under the terms of the EKF Securitisation Guarantee, the beneficiaries will receive a 100 per cent cover, covering both borrower and refinancing bank default. The underlying export credit loans are rated AAA thanks to the innovative guarantee. It aligns the risk-profile of the underlying loans to the Danish sovereign rating, which makes e.g. pre-construction developments accessible to institutional investors without using specialised infrastructure funds.