Finexpo

Finexpo, a contraction of financing and exports, is a federal body that supports the export of Belgian capital goods and related services.

Here are the different Finexpo instruments:

Interest stabilisation (commercial instrument)

Exporters can apply for interest stabilisation on commercial credit. Interest stabilisation guarantees a fixed interest rate for the entire duration of the project financing, i.e. the period during which the money is drawn and the period during which it is repaid. This instrument is valid for any export country, provided that the country risk in question can be insured through Credendo.
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Tied aid (concessional instruments)

1. The "innovation" instrument for SMEs

This instrument targets Belgian capital goods and related services of an innovative nature that are already fully functional.  For this instrument, a grant is awarded of between 80.01 and 100% of the contract value, with a ceiling of 500,000 or 700,000 euros depending on the Belgian part of the project.

In addition, the following conditions must be met:

1. The aid can only be used for a first export.
2. Only exports to a country on the specific Development Assistance Committee list are eligible.
3. The client must be a public entity.
4. Only projects with a minimum Belgian interest of 30% are eligible.
5. The cost of innovation must represent at least 40% of the total project cost.

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2. Renewable energy and circular economy instrument for SMEs

Projects focusing on renewable energy or the circular economy are also included in the target group for possible support. For this instrument, a grant is awarded of between 80.01 and 100% of the contract value, with a ceiling of 500,000 or 700,000 euros depending on the Belgian part of the project.

In addition, the following conditions must be met:

1. The project may receive support twice for a first export to two different countries on the specific Development Assistance Committee list. The second application for support can only be submitted after the first project has been completed.
2. The project must have a minimum Belgian interest of 30%.
3. The client must be a public entity.

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3. Tied State-to-State loan

This form of State loan is granted to developing countries to finance development projects carried out by Belgian companies. Loans are capped at €12 million to allow as many companies as possible to participate. The advantageous terms are a 1.5% interest rate and a 35% grant element. The repayment period is 30 years, including a ten-year grace period.

The additional requirements for a tied State loan are as follows:

1. The project is a priority for the country concerned.
2. The project must not be commercially viable and must be relevant to development.
3. Competition must exist.
4. The project must have a Belgian interest of at least 40%.

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4. "Mixed credit" (State-to-State loan combined with commercial credit)

A mixed credit is a combination of a State loan and a commercial loan (this breakdown varies each year). The objective is to maximise the contract amount.

The additional requirements for a mixed credit are as follows:

1. The project is a priority for the country concerned.
2. The project must not be commercially viable and must be relevant to development.
3. Competition must exist.
4. The project must have a Belgian interest of at least 40%.
5. The maximum amount of the State loan is 10 million euros.

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5. Grant

According to OECD rules, a grant contains a gift element of at least 35%. The remaining 65% must be paid in cash or through financing.

Several conditions must be met to receive a grant.

1. The project is a priority for the country concerned.
2. The project must not be commercially viable and must be relevant to development.
3. There must be competition that also receives aid
4. There must be a minimum Belgian interest of 40%.
5. The amount of the contract must not exceed 14 million euros

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6. "Interest rate bonification with or without an additional grant"

This instrument contains a 38% subsidy element, calculated by combining a 0% interest rate with a long repayment period (10-15 years). In practical terms, this means that Finexpo reimburses the entire cost of the interest on the credit granted to the client. The client simply repays the principal.

An additional grant may be granted to shorten the repayment period.

The additional requirements for granting interest rate bonification are as follows:

1. The project is a priority for the country concerned.
2. The project must not be commercially viable and must be relevant to development.
3. Competition must exist.
4. The project must have sufficient Belgian interest.
5. The project must be covered by Credendo.

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7. A technical assistance grant

Technical assistance refers to services that enhance the expertise of officials, workers and employees involved in the country concerned. A technical assistance grant should always be combined with an untied State-to-State loan or interest stabilisation.

The additional requirements for technical assistance are as follows:

1. Only Belgian companies can submit an application
2. The client must be a public institution
3. The maximum funding is 1 million special drawing rights or 3% of the contract amount. The lowest amount is taken into account.

In the context of technical assistance, tied aid is allowed even in countries where aid is supposed to be untied.

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Untied aid (concessional instrument)

An "untied State-to-State loan"

Untied aid should be given to the least developed countries (LDCs) and heavily indebted poor countries (HIPCs). This aid is granted in the form of an untied State loan, granted directly to the beneficiary country and with no restrictive conditions on the origin of the goods purchased. For this type of aid, the beneficiary country is obliged to publish an international call for tenders for the implementation of the project.

It is subject to the following conditions:

• an interest rate of 1.5%;
• a repayment period of 30 years in total, including a 10-year grace period.
• a 35% grant element.

For more details

For more information, please contact finexpo@diplobel.fed.be and consult the diplomatie.belgium - Finexpo website. You will find additional information on the relevance of each instrument for the company, as well as on the procedure, the files to be completed and the useful contact points for these dossiers.