Credit insurance

Credit insurance

CESCE is the Spanish Export Credit Agency (ECA), and as such it manages export credit and investment insurance exclusively on behalf of the Spanish State. You can see who we are here .

Role of the CESCE

• On behalf of the Spanish state, it manages the political, commercial and extraordinary risks associated with the internationalisation of Spanish companies.
• It helps them to offer financing to their customers under competitive terms.
• It facilitates the process for obtaining guarantees or financing of working capital.
• It mitigates the risks associated with doing business internationally.

As a managing agent, the CESCE contracts insurance with the Insured. The State is ultimately liable as the guarantor or insurer of the cover, wherefore the State Budget establishes a limit for that cover every year. The instrument also has the backing of a Reserve Fund for Internationalisation Risks held by the state, allocated with resources generated from the activity itself.

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Products

The cover takes the form of various types of insurance or guarantees, depending on the characteristics of the transaction, the risks to be covered and the contracting party of the insurance.

Solutions for financial institutions

Banks provide financing or bank guarantees that make it possible for Spanish companies to conduct international transactions. The CESCE provides financial institutions with coverage of the main risks that are derived from those transactions through the following products:

• Insurance for Working Capital Credit : This policy is designed to cover the risk of non-payment of a credit whose purpose is to finance a Spanish company that has export or internationalisation contracts or projects.
• Supplier Credit, with the bank acting as the beneficiary of the Policy : The Exporter can use this coverage mode to obtain financing by discounting the rights to the receivables of a contract. In this case, the discounting bank can be designated as the BENEFICIARY, consequently transferring to the bank the right to receive any compensation in the event of non-payment of the discounted invoices or bills.
• Buyer credit: This policy guarantees that a financial institution will be reimbursed for a loan granted to a foreign buyer for the purchase of Spanish goods and services in the event of non-payment of the loan.
• Policy for the Enforcement of Guarantees: This Policy is designed for transactions in which the Exporter must provide, to a foreign buyer or the authorities of a country, a guarantee derived from an export contract, and it allows insuring the Institution that issues the guarantee on behalf of the Exporter.
• If the exporting company is an SME: Policy for the Enforcement of Guarantees : This line is designed for companies that are technically solvent, that have a large number of employees and that have decided to go international in search of new contracts that allow them to maintain their business activity, and the first obstacle they encounter is insufficient guarantee lines.
• Financing of a Spanish investment abroad: Secure Investments for Financial Backers : it offers coverage against the political risks derived from investments abroad for the purpose of favouring the internationalisation of Spanish companies.
• Confirmation of a personal letter of credit issued by a foreign bank:  Letters of Credit (Personal) Insurance Policy
• Confirmation of a letter of credit: Letters of Credit Insurance Policy (Open).
• Project financing: Buyer’s Credit: it grants Political and Commercial Risk coverage for transactions financed with the sole guarantee of the resources that the project itself is capable of generating.

Solutions for companies

CESCE supports companies by covering the risks that may arise from an export contract for Spanish goods and services or for an investment project, through the following products:

• Improper enforcement of guarantees/deposits: Secure Deposits for Exporters
• Non-payment of an export contract: supplier credit
• Unjustified termination of a contract:  supplier credit
• Specific risks arising from civil engineering operations: works insurance
• Political risks arising from an investment abroad: investment insurance for investors

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Green policies

Cesce has adapted its export credit and investment insurance coverage to promote the activity of Spanish companies in sectors considered green according to the EU taxonomy or Annex IV of the OECD Consensus.

• Green Export Policies
• Green Investment Policy

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Credit risk coverage programme for biggest electricity consumers

Cesce acts as Managing Agent for the coverage of de facto or de jure insolvency risks arising from the medium and long-term purchase of electricity by the biggest electricity consumers.

Insurance for bank guarantees or sureties

Enables the biggest electricity consumers to obtain bank guarantees or sureties that may be necessary for the signing of a medium- to long-term power purchase agreement (PPA) between an big consumer of electricity and a seller of electricity from renewable sources.

Guarantee for energy sellers – biggest electricity consumers

Covers the seller of electricity for the risk of non-payment of the liabilities acquired by an big consumer of electricity under a medium-long term purchase agreement (PPA) for energy from a renewable source.

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