Export Credit Agencies (ECAs) play a pivotal role in supporting international trade by enabling exporters to offer competitive financing to overseas buyers.
However, one of the most critical—and sometimes overlooked—factors in determining the level of support available is the ECA’s “content requirement.”
What are Content Requirements?
Content requirements specify the minimum proportion of goods or services in a transaction that must originate from the ECA’s home country to qualify for support. These rules directly impact the maximum amount of financing available under buyer credit structures.
The U.S. EXIM Approach
The Export-Import Bank of the United States (EXIM) is a prime example. EXIM limits its financing to the lower of the U.S. content in the transaction or 85% of the contract value. This means that if a project contains 60% U.S. content, EXIM will only finance up to 60% of the contract value. This approach ensures that U.S. taxpayer-backed financing supports American jobs and industry.
A European Perspective
European ECAs have their own content rules, which can differ significantly:
- Switzerland (SERV): The Swiss ECA, SERV, requires at least 20% Swiss content in the export contract, making it one of the more flexible ECAs in Europe.
- Germany (Euler Hermes): Typically requires at least 50% German content but may consider lower thresholds if there is significant German value added or strategic interest.
- United Kingdom (UKEF): UKEF’s content policy is more flexible, sometimes supporting deals with as little as 20% UK content, provided there is a clear benefit to the UK economy.
Why Does This Matter?
Understanding content requirements is essential for structuring cross-border deals and maximizing available ECA support. Early engagement with ECAs and careful planning of supply chains can make the difference between a fully financed project and a missed opportunity.
Bottom Line
Content requirements are not just a technicality—they are central to the level of ECA financing available.
By navigating these rules effectively, exporters can unlock new markets and drive growth, while ECAs ensure their support delivers real value at home.