Costs
The costs for an Untied Loan Guarantee are composed of an application fee and a cover premium. The enquiry regarding the project’s eligibility for cover in principle free of charge.
Application fee
A fee must be paid for the processing of the application for an Untied Loan Guarantee. The fee is applicable to the underlying contractual relationship and must comply with the Practical Information on Fees and Premium Rates.
Dependent 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 guarantee is not issued, the application fee will partly be reimbursed. If the analysis of the project’s profitability and the financing structure has not yet begun, the reimbursement amounts to 75 % of the full application fee. When the analysis has begun 25 % of the application fee will be reimbursed.
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 (without interest) to be covered. Main criteria: the borrower’s creditworthiness or the project’s economic stability, the country risk as well as the risk duration.
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 tool (German Version only)
With the premium tool you can calculate 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.
