Cases: Defence

Backed by Eksfin guarantees defence supplier CHSnor delivers armoured vehicles to the Swedish Armed Forces

The Norwegian company CHSnor, backed by guarantees from Eksfin (Export Finance Norway), has secured a contract to supply CV90 armoured vehicles to the Swedish Armed Forces. The purchaser is a division of the world’s largest defence group, BAE Systems. The vehicles will replace vehicles donated by Sweden to Ukraine.

Key facts

Client: CHSnor provides comprehensive system integration and verification of armoured vehicles and other complex products. CHSnor has long experience in defence, offshore/subsea, and airport-related equipment. The company traces its roots back to 1898 (Moelven Brug).

Financial need: Provision of contract guarantees

Eksfin Product: Framework agreement for advance payment guarantees (contract guarantees).

An advance payment guarantee improves the exporter’s liquidity during the production period and provides the buyer with security for prepayments made.

Significant Export Contract for Future Growth

CHSnor will assemble turrets and integrate systems for complete CV90 armoured vehicles, with deliveries scheduled between 2026 and 2029. The collaboration with the Swedish client, BAE Systems Hägglunds, opens up new industrial opportunities and positions CHSnor for continued growth in the Nordic defence marked.

Both the Swedish and Norwegian armed forces are planning to procure additional armoured vehicles in the coming years.

“This is an important contract, won in competition with international companies, and it establishes CHSnor as a partner with BAE Systems Hägglunds for deliveries beyond Norway as well,” says Harald Sunde, Chairman of CHSnor. “The potential for further growth in cooperation with BAE Systems Hägglunds is considerable.”

As part of the contract, CHSnor’s client, BAE Systems Hägglunds, pays advances on a significant portion of the order and therefore requires corresponding advance payment guarantees from the company’s bank.

Advance payment bonds are a type of contract guarantee offered by Eksfin in partnership with banks to support Norwegian exporters. This arrangement enhances the bank’s capacity to provide guarantees related to international trade, offering a major advantage to companies that can then take on larger and more numerous assignments.

To provide the necessary capacity, Eksfin and SpareBank 1 Østlandet have established a framework agreement for advance payment bonds in which Eksfin covers 50 percent of the bank’s risk, while the bank issues the advance payment guarantees to the buyer.

Financing Across the Defence Export Value Chain

Norwegian defence industry is experiencing a steadily increasing volume of assignments, with more companies requiring loans and guarantees to secure new contracts or investments. Eksfin provides financing solutions across the entire value chain ensuring that Norwegian industry remains competitive in international markets.

“In the current geopolitical climate, it is important that Norwegian defence industry and their banks are aware of how Eksfin can contribute,” says Ivar Rekve, Director of SMEs and Maritime Industries at Eksfin. “We are seeing strong growth across the sector, and an increasing number of companies are making use of Eksfin’s services.”

Read about Kongsberg Defence and Aerospace and Oskar Pedersen.