Your partner for the supply of raw materials
- Protection against payment defaults
- Access to risk-prone markets
- Easier access to raw material finance
We will assist you at every step of the way.
As one of the leading industrialised nations, the Federal Republic of Germany is among the largest consumers of raw materials worldwide and therefore a stable and reliable supply of raw materials is of crucial significance for the German industry. However, due to the limited resources of domestic raw materials, Germany is dependent on the supply of raw materials from abroad. The issue of a sufficient raw material supply lies first and foremost with the companies themselves. However, supply constraints, distortions in trade, drastic price increases as well as political influences aggravate the supply situation and impede the access to certain raw materials for German companies. Here, the Untied Loan Guarantees of the Federal Republic of Germany come into play, which, since 1961, have facilitated the access to raw materials abroad.
UKF-Guarantees at a glance
Securing raw materials projects abroad with UFK-Guarantees
The Federal Government's UFK-Guarantees make it easier for German companies to access raw materials abroad by insuring lenders against economic and political credit default risks. These guarantees are a central component of the German government's raw materials strategy and promote projects that are important for the raw materials industry and in Germany's particular interest.
Raw materials extraction for non-project-related corporate
financing
The extended scope of application of the UFK-Guarantees also enables corporate financing without the use of project-linked funds. As an integral part of the Federal Government's raw materials strategy, contractual relationships between German companies and foreign raw materials suppliers are thus strengthened independently of new investment projects.
Security of supply through the Climate-UFK
In order for the transformation towards climate neutrality to succeed in Germany, the supply of intermediate products and raw materials for low-emission technologies must be guaranteed. German companies are facing massive investments to secure these supplies from abroad and need appropriate support. The Climate-UFK creates suitable incentives for their participation.
UFK-Guarantees as an element of the German raw materials strategy
Securing raw materials and energy supplies and diversifying markets and supply chains are key tasks of federal policy. In this context, UFK-Guarantees are an important instrument for supporting raw materials and transformation projects. Untied Loan Guarantees have been used as financial credit cover to support German industry in procuring commodities for its own manufacturing processes.
Untied Loan Guarantees protect lenders in foreign raw material projects from the risk of commercial and political default risks and are a central component of the Federal Government’s raw materials strategy (DE).
Raw material purchases secured by a long-term supply contract between a foreign producer or trader and a German buyer are eligible for cover. This guarantee is “untied” in the sense that – unlike Export Credit Guarantees – it is not tied to the provision of German goods and services in return.
In recent years, various projects have been implemented with UFK-Guarantees that contribute to the supply of sustainable raw materials to German industry. These raw materials play a crucial role in the energy transition and contribute to increasing the resilinece of the German economy. In addition, projects related to the supply of raw materials through the import of copper, nickel, cobalt, lithium, battery cells and green hydrogen, among others, were classified as eligiblity (for cover), which shows the wide range of applications of the UFK-Guarantee.
As part of the raw materials strategy, the possibility was created to apply UFK-Guarantees in the area of raw materials extraction to non-project-related corporate financing.
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