Swedish state-owned corp backs financing of large UK subsea link with €800M

July 8, 2025, by Nadja Skopljak

Swedish Export Credit Corporation (SEK), a state-owned company that finances Swedish exporters, their subcontractor, and foreign customers, has agreed a €800 million loan facility with National Grid Electricity Transmission to fund a portion of what is said to be the UK’s largest-ever electricity transmission project and the longest high voltage direct current (HVDC) cable in the country.

Eastern Green Link 2 (EGL2), developed by a joint venture between SSEN Transmission and National Grid Electricity Transmission, involves the installation of a 505-kilometer, 2 GW high-voltage direct current (HVDC) subsea cable connecting Peterhead in Scotland to Drax in Yorkshire.

SEK is providing financing for Swedish and European exports to National Grid’s share of the project, including deliveries from Hitachi Energy.

The loan to fund project construction has been classified as a Green Loan under international principles, described by SEK as a clear recognition of climate benefits and alignment with global sustainability goals.

The financing is being arranged in collaboration with Société Générale and BNP Paribas, with CIRR and funding provided by SEK, backed by EKN’s Green Export Credit Guarantee.

“This is a strategically important investment that strengthens the UK’s renewable energy infrastructure. We are proud to contribute by financing Swedish technology with global impact. Green and sustainable financing is a priority area for us, and this project clearly supports the transition to a low-carbon economy,” said Marica Bixo, Director, Global Trade and Export Finance at SEK.

Construction of EGL2 started in September 2024. The total cost of the link is estimated at approximately €5 billion. Commissioning is expected in 2029.