Your way to receive cover 

At a very early stage of a raw material project’s planning and negotiation phase, the Federal Government, on request, provides an indication as to whether a project is suitable for cover under the Untied Loan Guarantee scheme as well as a confirmation on the project’s eligibility for cover in principle. Such an enquiry is informal and free of charge. It can be filed by all relevant project participants (lender, financial advisor, German offtaker and sponsor). The enquiry is typically submitted following the exploration phase or within the project structuring phase.

Information required to receive an indication

• Project description including specific information on the raw material
• Project participants including specific information on the borrowers
• Investment volume
• Project structure and its particularities
• Scheduled financing structure with further additional information on the collateral construction
• Planned offtake concept for the raw material including German final offtaker, sales volumes, transportation concept etc.

Based on the available information we analyse the project and sales concept as well as the general market and supply situation with regard to the respective raw material. Furthermore, we may discuss particularities of the project and financing structure as well as the economic and political situation in the project country.

A main criteria for the eligibility for cover in principle is the macroeconomic relevance of the raw material offtake by the German company. Indications on the eligibility for cover can only be provided on a case-by-case basis.

The Federal Government makes a decision on the eligibility for cover in principle in consultation with the department of raw materials within the Federal Ministry for Economic Affairs and Climate Action. Generally, this decision will also include the maximum amount which can be covered under an Untied Loan Guarantee. The Federal Government will inform the interested party of its decision in writing through a “Letter of Interest”.

There do not exist any restrictive country cover policy decisions for Untied Loan Guarantees. However, when deciding on cover of raw material projects, the Federal Government always takes the current situation in the host country into account. If you have any queries, please do not hesitate to contact our experts.

Your contacts will assist you in the event of a loss.

Please contact them early on when a loss is impending.