Impact Loans
Impact loans with ECA-guarantees

Export credit agency (ECA) loans are loans that can finance social and sustainable projects in developed and developing markets, such as social housing, renewable energy and healthcare. They benefit from a full guarantee from a highly-rated central government through the respective ECA. Given the complexity and high entry barriers, ECA loans offer significant pick-up compared to government bonds while also providing diversification benefits as investors can find both floating and fixed-rate investments.

Strategy key facts:

  • Low credit risk: Credit risk of ECA loans is lower than relevant government bonds of guarantee provides given the double recourse on the loans

  • Yield pick-up: ECA loans offer attractive premium to government bonds given their illiquidity and complexity. Pick-up usually exceeds 100bps

  • ESG: Loans finance specific sustainable EM infrastructure projects*. ESG and sustainability screening on collateral, borrowers and guarantors