Focus on SACE S.p.A.

Italian companies with a registered office in Italy that export goods and services or execute works abroad, as well as foreign subsidiaries or affiliates of Italian companies engaged in sales or the execution of works abroad.

Eligible supplies include Italian capital goods: machinery, plants, and related studies, designs, works, and services, as well as semi-finished and intermediate goods exclusively intended to be integrated into capital goods. Subcontracts of goods and services of EU origin are eligible within the limits set by EU regulations.

Exports are permitted to all countries worldwide, with the exception of those subject to specific restrictive measures.

the consieration price for the supply price must be paid by the foreign buyer as follows:

• At least 15%, not benefitting from public support, must be paid prior to the date of shipment, delivery, or preliminary testing (in the case of “turnkey” plants);
• The remaining 85% may be repaid in installments (maximum semi-annually), with interest calculated at a rate not lower than the CIRR (Commercial Interest Reference Rate) if a fixed rate is applied.

At least 24 months for countries classified as “marketable risk countries” under EU regulations (as defined in the European Commission Communication to the Member States on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to short-term export credit insurance – 2012/C 392/01). For all other countries, the credit duration may be less than 24 months. In all cases, the maximum duration must comply with international agreements based on the country category and type of transaction.

Export credit insurance is provided through the issuance of guarantees, insurance coverage, and bonds for the export of goods and services or the execution of works abroad by Italian companies or their foreign subsidiaries/affiliates. The following types of transactions are eligible:

• For lenders: Buyer Credit, Documentary Credit Confirmations;
• For companies: Supplier Credit, Work Insurance and Guarantees.

• Credit risk arising from the borrower’s failure to repay financing (Buyer Credit), due to political or commercial events;
• Credit risk linked to the confirmation of documentary credits issued by foreign banks (based in a country other than the confirming bank’s) for the payment of goods, services, or works by Italian exporters or their foreign affiliates (Documentary Credit Confirmations), arising from political or commercial events;
• Credit risk from non-repayment due to political and/or commercial events; production risk (e.g., unforeseen contract termination by the foreign buyer); risk of wrongful enforcement of bonds issued for (i) bid participation, (ii) performance guarantees (Supplier Credit), caused by political or commercial events;
• Credit risk from non-repayment of recognized or legally determined debt due to political and/or commercial events; production risk (non-recovery of production costs incurred by the company due to political and/or commercial events); risk of wrongful enforcement of bonds issued for (i) advance payments, (ii) performance guarantees; risk of destruction, damage, requisition, or confiscation due to force majeure or acts of a foreign state (Work Insurance and Bonds/Guarantees), stemming from political and commercial events.

Insurance policies and guarantees may cover political, sovereign, sub-sovereign (public buyers), and commercial risks. To mitigate these risks, individual policies may include specific clauses such as deductibles, mandatory co-insurance, or may require credit enhancement mechanisms (e.g., counter-guarantees, pledges on assets, cash collateral, etc.).

Pursuant to Article 3 of Ministerial Decree No. 199/2000, eligible beneficiaries of the coverage include:

• National operators obtaining financing abroad, including through national banks;
• National or foreign banks granting financing to national operators or foreign counterparties;
• Foreign buyers of national goods and services, as well as foreign clients commissioning studies, designs, and works from national companies.

In accordance with the Company’s Statute, insurance coverage may also be extended to national operators and their affiliated or controlled entities, including foreign ones, in their international operations.

 Reputation Requirements: the applicant must meet the following conditions:

• No convictions, precautionary measures, disqualifications, or equivalent actions must have been issued in the last five years against the company or its representatives, nor should there be any ongoing legal proceedings related to (i) corruption under the OECD Convention, (ii) domestic corruption, or (iii) private-sector corruption;
• Relevant information on the above must be disclosed;
• The company must not be subject to sanctions, owned/controlled by sanctioned entities, or listed among entities debarred by the World Bank or other multilateral financial institutions.

the premium is calculated based on the risk involved and must in any case not fall below the minimum level established by the OECD, which Export Credit Agencies (ECAs) commit to applying for medium- to long-term credit risk insurance transactions.

For short-term risks (less than 2 years), a private market for credit insurance is available.