State credit guarantees for electricity producers through September 2023

Until the end of September 2023, the Debt Office was able to issue credit guarantees for loans to electricity producers cleared in the electricity derivatives market by Nasdaq Clearing AB.

On 5 September 2022, the Government resolved to give the Debt Office a mandate for providing state credit guarantees for loans to electricity producers.

This assignment from the Government came in response to the exceptional price trend and volatility in the electricity market during the spring and summer of 2022, which caused electricity producers that trade in derivatives to pledge higher collateral with Nasdaq Clearing AB.

That situation could have led to liquidity problems for companies that were ultimately solvent, which risked affecting the central counterparty Nasdaq Clearing AB over time and thereby financial stability.

The credit guarantee scheme for loans to electricity producers was not utilised and the last day to apply was 30 September 2023.

Brief facts

  • Guarantees could be granted up to and including 30 September 2023. The total maturity was not allowed to exceed three years.
  • The guarantee framework amounted to SEK 250 billion.
  • A guarantee could cover up to 80 per cent of a loan, with the bank covering the remaining share.
  • For the credit guarantee, the guarantee holder was to pay a market-based guarantee fee determined by the Debt Office. This fee would be set individually per company and credit facility. The guarantee fee consisted of the following parts: an administrative fee, a fee for expected loss, and a premium to ensure that the guarantee fee was market-based and thus did not involve state aid.

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