Buyer’s Credit is an international financing mechanism that allows project developers, government agencies, and private companies to purchase industrial equipment from European suppliers under long‑term, low‑interest financing backed by Export Credit Agencies (ECAs).
This model is widely used for energy, water, mining, and public‑sector projects that require certified equipment and transparent procurement.
How Buyer’s Credit Works
Under a Buyer’s Credit structure, a European bank provides a loan directly to the project company (the borrower). The loan is insured by a European ECA, which requires that 50–60% of the equipment be manufactured in the EU.
The bank disburses funds directly to the EU suppliers, ensuring secure payment and compliance with international financing standards.
Key Participants
Aggregator / Procurement Coordinator – Consolidates equipment packages, validates EU content, and manages documentation.
Financing Bank – Issues the Buyer’s Credit loan and pays EU suppliers.
European ECAs – Provide insurance/guarantees and verify EU‑content requirements.
Project Company (Borrower) – Receives the financed equipment and repays the loan.
EU Manufacturers – Supply certified equipment eligible for ECA financing.
Why Buyer’s Credit Is Ideal for Industrial Projects
Long‑term financing (5–10 years)
Competitive interest rates
Secure payment to suppliers
Full traceability of origin
Strong compliance and documentation
Enables large‑scale industrial procurement
How EXOBUYER Supports Buyer’s Credit Projects
EXOBUYER coordinates the full procurement and compliance workflow, ensuring:
EU‑content verification
Supplier validation
Technical documentation
Consolidation of equipment packages
Alignment with ECA and bank requirements
Transparent reporting for lenders and project sponsors
This integrated model ensures smooth disbursement, compliant procurement, and successful execution of industrial and energy projects.