Costs of an Untied Loan Guarantee

The costs of an Untied Loan Guarantee consist of the application fee and the cover premium. The inquiry about a project’s eligibility for cover in the light of raw materials supply considerations is free of charge.

A fee must be paid for the processing of the application for an Untied Loan Guarantee. The fee is based on the underlying contractual relationship and payable in accordance with the Practical Information on Fees and Premium Rates.

Depending on the loan amount (including interest) to be covered, the fee is calculated as follows:

- Up to EUR 5 million: 0.1%

- Amount exceeding EUR 5 million: 0.05% (total fee does not exceed EUR 30,000)

If the application is denied or if for some other reason the Untied Loan Guarantee is not issued, the application fee will partly be refunded. If the analysis of the project’s profitability and the financing structure has not yet begun, the refund amounts to 75% of the full application fee. When the analysis has begun 25% of the application fee will be refunded.
 

Cover premium

Upon grant of an Untied Loan Guarantee the policyholder must pay a risk-based premium. This is charged as a risk-differentiated percentage of the loan amount receivable (excluding interest) to be covered. Main criteria: the borrower’s creditworthiness or the project’s economic stability, the country risk as well as the risk period.

A surcharge of 10% on the respective premium payable is applied for untied loans not denominated in euros or US dollars (foreign currency cover).

Premium calculation tool

With the premium calculation tool you can determine the potential premium rate and the corresponding premium amount. The result is a guideline value for interested parties, showing what premium might be payable in connection with an Untied Loan Guarantee.