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At a very early stage of a raw material project’s planning and negotiation phase, the Federal Government, on request, provides an indication as to whether a project is suitable for cover under the Untied Loan Guarantee scheme as well as a confirmation on the projct’s eligibility for cover in principle. Such an enquiry is informal and free of charge. It can be filed by all relevant project participants (lender, financial advisor, German offtaker, and sponsor). The enquiry is typically submitted following the exploration phase or within the project structuring phase.


The following documents need to be presented to receive an indication

  • Project description including specific information on the raw material
  • Project participants including specific information on the borrowers
  • Investment volume
  • Project structure and its particularities
  • Scheduled financing structure with further additional information on the collateral construction
  • Planned offtake concept for the raw material including German final offtaker, sales volumes, transportation concept etc.


Assessment steps and criteria of the Federal Government

Based on the available information we analyse the project and sales concept as well as the general market and supply situation with regard to the respective raw material. Furthermore, we may discuss particularities of the project and financing structure as well as the economic and political situation in the project country.

A main criteria for the eligibility of cover in principle is the macroeconomic relevance of the raw material offtake by the German company. Indications on the eligibility for cover can only be provided on a case by case Basis. 


Decision on the enquiry

The Federal Government makes a decision on the eligibility for cover in principle in consultation with the department of raw materials within the Federal Ministry for Economic Affairs and Climate Action. Generally, this decision will also include the maximum amount which can be covered under an Untied Loan Guarantee. The Federal Government will inform the interested party of its decision in written form through the “Letter of Interest”.

Time horizon

The Federal Government’s indication for cover in principle is usually given within a timeline of two to six weeks by the Interministerial Committee (IMC) for project finance which generally meets every four weeks. In especially time-critical cases the Federal Government may provide its indication on the eligibility for cover in principle without requiring a regular meeting.

Untied Loan Guarantee cover practice

Image: Countries with raw material projects


Hannes Hagel

Untied Loan Guarantees

Julian Greiwe

Untied Loan Guarantees