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Kingdom of Sweden/Loan Insurance Underwritten for LIB manufacturing plant construction project: First Insurance for a Project Underwritten After MoU with European Investment Bank-


July 30, 2020

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance (“NEXI”, Chairman and CEO: Atsuo Kuroda) has decided to underwrite loan insurance for a lithium-ion battery (“LIB”) manufacturing plant construction project undertaken by the Northvolt AB in the Kingdom of Sweden (“Sweden”). The insurance is provided to a loan for the purchase of equipment delivered by Japanese companies.

This project is to build a LIB giga factory (total potential battery capacity: 40GWh), based on the plan of the Northvolt AB (CEO: Peter Carlson), which was founded in Sweden in 2016. The products are to be sold automobile, truck and machine tool manufacturers in Europe. As the main equipment for the first part of the factory to be constructed in the project, several Japanese companies will deliver manufacturing facilities.

Northvolt will fund this project through project financing provided by a European international financial institution European Investment Bank (EIB) and ECAs in Europe and Asia. Of the financing, Sumitomo Mitsui Banking Corporation, BNP Paribas Bank, Societe Generale, and ING Bank co-finance USD 150 million to fund a portion of payment for the aforementioned Japanese companies’ export goods and others. NEXI underwrites insurance for the co-financing.

Project financing for an LIB giga factory is the first case that NEXI has experienced.

This project is also the first case since NEXI signed a memorandum of understanding (MOU) with the EIB in October 20181, and thereby will strengthen NEXI’s economic cooperation with Europe.

This loan financially supports exports by Japanese companies including SMEs and contributes to maintaining and improving the international competitiveness of Japanese businesses. As a financial institution that implements Japanese policy, NEXI will continue to actively support exports by Japanese companies.


Reference
Insured Sumitomo Mitsui Banking Corporation, BNP Paribas Bank, Societe Generale, and ING Bank
Insured value USD 150 million
Tenor 9,5 years
Covered risks Political risk: 100%, Credit risk 95%

Contract:Infrastructure Group, Structured and Trade Finance Insurance Department
Tel: +81-(0)3-3512-7674


1 https://www.nexi.go.jp/en/topics/newsrelease/2018102205.html

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