IN THE FIELD
Swiss Export Risk Insurance SERV supports and assists Swiss enterprises with everything from strategic direction through to the last payment for your export transaction. These three success stories tell you how.
energy_production
SUSTAINABLE ENERGY PRODUCTION SUPPORTED BY SERV
The energy transition is on everyone’s lips and sustainable energy production solutions are more in demand than ever. With its lightweight, foldable solar roofs, dhp technology AG offers a pioneering product in this field. Its business is booming, but it is impossible for the young company to cope with the risks associated with this massive growth on its own.
In view of the energy transition, the industry is called upon to find solutions for modern and sustainable energy production. One of the players offering a product that is unique on the market is the start-up company dhp technology AG (DHP). DHP has specialised in a ground-breaking product that enables the unrestricted dual use of existing infrastructure and energy generation. These are solar folding roofs which, because they are so light, can be erected over car parks or a wide range of production facilities. In addition, the folding roofs can be retracted automatically when required, e.g. in bad weather. DHP has identified a segment with great potential for its product: sewage treatment plants. They are energy-intensive and benefit from the electricity they can obtain directly on site from an installation that does not disrupt their operations.
After DHP supplied several sewage treatment plants in Switzerland, four German operators of sewage treatment plants were also persuaded by the merits of the product in 2023. The order value of these four deliveries totals over CHF 5 million, a volume whose risks the young company cannot possibly handle alone.
“The only alternative to SERV for a young SME like ours would be expensive equity financing.”
Gian Andri Diem
CO-FOUNDER AND MANAGING DIRECTOR OF DHP
SERV, a game changer
DHP is in a start-up phase and is currently experiencing remarkable growth. With this growth comes the challenge of fulfilling large orders and managing the associated risks. The young SME is faced with a crucial dilemma: how can it scale up its operations to meet growing demand while ensuring it retains the liquidity to do so?
DHP has been able to negotiate generous advance payments for its solar panels, but these need to be guaranteed. This is where Swiss Export Risk Insurance (SERV) comes in. With its support, the risks of these advance payment guarantees could be insured and guaranteed vis-à-vis the bank. As a result, DHP does not need to deposit limits or cash with the bank and can use the advance payment effectively for the production of the export project. In addition, it is protected by SERV’s insurance in the worst-case scenario that the buyer draws on the guarantee without justification. “SERV’s insurance and guarantees are a game changer for us. The only alternative to SERV for a young SME like ours would be expensive equity financing. Those deliveries to Germany would simply not have been possible in that form,” Gian Andri Diem, co-founder and managing director of DHP explains.
The cooperation between DHP and SERV shows how innovation and ambition, coupled with the right insurance solution, can provide financial room for manoeuvre and thus give rise to remarkable success. Romeo Grass, Assistant Vice President, Large Enterprises, SMEs & Acquisition at SERV, comments: “As DHP continues to grow and contributes to the energy generation sector, its story serves as an inspiring example of the potential of innovation and collaboration in our rapidly changing world”.
swiss
SWISS SMES ARE CONTRIBUTING TO A MAJOR INFRASTRUCTURE PROJECT IN IVORY COAST
Large parts of the rural population in Ivory Coast do not have access to clean water. To tackle this problem, the Ivorian government has launched the ambitious infrastructure project “Water for all” – and Swiss small businesses are playing a big role in it. Thanks to the collaboration and pooling of expertise between various players, they are able to participate in a major project that would otherwise be out of reach for them.
Large parts of the rural population in Ivory Coast do not have access to clean water. The Ivorian government is aiming to change this with its ambitious infrastructure project “Water for all”. By delivering drinking water to people’s doorsteps in 6,000 communities, this initiative will improve the quality of life and economic situation of millions of people. Some of the supplies for the project are being sent from Switzerland. Swiss Export Risk Insurance SERV is insuring the financing of these supplies in the amount of EUR 160 million.
Access to a major international project for Swiss SMEs
The Ivorian government has chosen the general contractor Rimon CH Ltd to design and install the necessary infrastructure for about 111 communities of the communities. AquaSwiss AG, based in Frauenfeld, Thurgau, is acting as Rimon’s primary supplier and handling the logistics, engineering, materials procurement and all sub-contracted work. “For this project, we didn’t just commission well-known large corporations but SMEs as well, including a two-person workshop from Eastern Switzerland,” says Sanjeev Varma, CEO of AquaSwiss. “Without our involvement, these small businesses would not have had access to a project of this size,” he adds proudly.
The financial advisory firm Bluebird Finance & Projects Ltd has arranged the financing package for Rimon, and has structured and coordinated the whole process with SERV. Ram Shalita, CEO of Bluebird, explains why his company opted for ECA insurance from Switzerland: “This is the third time we have worked with SERV to finance a large project, so we know we can trust them. I particularly appreciate SERV’s reliability, flexibility and support when unexpected challenges arise.”
“This is the third time we have worked with SERV to finance a large project, so we know we can trust them. I particularly appreciate SERV’s reliability, flexibility and support when unexpected challenges arise.”
Ram Shalita
CEO Bluebird Finance & Projects
Patience and flexibility are also needed on this project, which according to Shalita is typical for large projects in emerging markets. SERV had been involved in the negotiations since 2019 and extended its insurance commitment in principle six times until it could eventually be converted into an insurance policy in 2023. In addition, the task of supplying 111 villages across the entire southern part of Ivory Coast is an incredible feat of logistics.
Another advantage of working with SERV is that it benefits indirectly from Switzerland’s excellent credit rating. Financing insured by SERV leads to better financing terms and can even tip the scales in an exporter’s favour when bidding for contracts.
Gil Etzion, Executive Vice President Business Development at Rimon Group, adds: “The ability to offer the Ivorian government attractive and long-term financing, on which we can rely for years until closing the deal, proved to be a tremendous advantage in winning the contract, and we definitely hope to do more large water deals in Africa with Swiss exporters and with SERV.”
satellites
SWISS SME SHAKES UP THE SATELLITE COMMUNICATIONS MARKET
SWISSto12, an EPFL Lausanne spin-off, has become the first Swiss company to manufacture a geostationary (GEO) telecommunication satellite for commercial use. It involves a unique satellite called HummingSat, built upon SWISSto12’s patented 3D printing technology and radio frequency (RF) products. To enable SWISSto12 to supply the main players in the market, it is working with Swiss Export Risk Insurance SERV.
At around the size of an industrial washing machine, HummingSats are much smaller than conventional GEO satellites. This makes them more affordable to build, and launch costs are also reduced as they can piggyback on so-called ride-share missions. SWISSto12’s groundbreaking 3D printing technology will help boost the satellite’s performance, streamline the manufacturing process, and reduce the build time and cost of production.
Satellites must withstand harsh conditions: extreme temperatures, radiation, and intense vibrations during the launch into orbit and therefore need to use cutting-edge and thoroughly qualified technologies. SWISSto12 is not only the first Swiss company to produce a geostationary (GEO) satellite for commercial use, but with 35 patent families, the SME also has the largest worldwide patent portfolio on 3D printing technologies and products for radio frequency (RF) applications.
When everyone pulls together
Since the company was founded in 2011, the newcomer in geostationary satellite manufacturing has raised over EUR 50 million in funding from prominent Swiss and European investors and four satellites have already been sold. In addition to that, SWISSto12 secured a CHF 25 million (EUR 26.15 million) working capital facility from UBS Switzerland AG in September. The facility, insured by SERV, will provide SWISSto12 with flexible growth capital to meet strong customer demand for its geostationary SmallSat, HummingSat.
“The insurance from SERV is enabling us to quickly fulfil orders from the biggest players in the market.”
Emile de Rijk
CEO SWISSto12
Emile de Rijk, CEO and founder of SWISSto12, explains the importance of their partnership with Swiss Export Risk Insurance: “We are shaking up the geostationary communication market, and demand is correspondingly high. The insurance from SERV is enabling us to quickly fulfil orders from the biggest players in the market.” The company currently has more than EUR 200 million in back orders from customers across its radio frequency products and subsystems business, partnership with the European Space Agency (ESA) and recent HummingSat contracts.
All parties showed a great deal of commitment and collaboration to establish this transaction. Julien Schaar, Vice President of Large Enterprises, SMEs & Acquisition at SERV, notes: “I have been impressed by the combined commitment and collaboration of Swissto12, its shareholder and its customers to getting this prestigious and ground-breaking project off the ground.”
