The central government provides on-lending and government guarantees to a number of government-owned companies, driven by a political wish to support certain projects. The majority of the loans are issued to government-owned companies involved in large infrastructure projects.
On-lending and guarantees contribute to better borrowing terms for the companies due to the central government's high credit rating. In order to consolidate central government debt, the financing has gradually moved from guarantees towards on-lending. This is motivated by the usually lower financing costs of on-lending, as the loan is financed by issuing government bonds, which are considerably more liquid than equivalent government-guaranteed issues by the companies. Government-owned companies typically combine on-lending with derivatives contracts with commercial banks. This enables them to improve their risk management while simultaneously benefiting from the low financing costs of on-lending.
Companies with access to on-lending or loan guarantees
| On-lendning | Government-guaranteed loans | |
|
A/S Femern Landworks |
X |
X |
|
A/S Storebælt |
X |
X |
|
A/S Øresund |
X |
X |
|
Danmarks Grønne Fremtidsfond |
X |
|
|
Danmarks Eksport og Investeringsfond (EIFO) |
X |
|
|
DR (Danish Broadcasting Corporation) |
X |
X |
|
DSB (The Danish State Railways) |
X |
|
|
Energinet.dk |
X |
|
|
Evida Holding |
X |
|
|
Femern A/S |
X |
X |
|
Finansiel Stabilitet A/S |
X |
|
|
Garantifond for Skadesforsikringsselskaber |
|
X |
|
Investeringsfonden for Udviklingslande |
X |
|
|
Kalaallit Airports International A/S |
X |
X |
|
Metroselskabet I/S |
X |
|
|
Naviair |
X |
|
|
Nordsøfonden |
X |
|
|
Ring 3 Letbane I/S |
X |
|
|
SAS (Scandinavian Airlines) |
X |
|
|
Sund og Bælt Holding A/S |
X |
X |
|
Udviklingsselskabet By og Havn I/S |
X |
|
|
Øresundsbro Konsortiet |
X |
|