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Ukraine's Fire Point gets $113 million state loan guarantee in Denmark - Finance news and analysis from Global Banking & Finance Review
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Ukraine's Fire Point gets $113 million state loan guarantee in Denmark

Published by Global Banking & Finance Review

Posted on October 21, 2026

2 min read

· Last updated: October 21, 2026

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Denmark Grants $113M State Loan Guarantee to Ukraine’s Fire Point Subsidiary

Denmark's State-Backed Loan to Fire Point: Key Details and Implications

Loan Guarantee Announcement

COPENHAGEN, Oct 21 (Reuters) - Denmark will guarantee a 750 million crowns ($112,6 million) loan to the Danish subsidiary of Ukrainian drone and missile maker Fire Point, the Nordic country's government said on Wednesday.

Rationale and Financing Structure

The loan is backed by the state because the war in Ukraine prevents Fire Point from borrowing on ordinary terms in Denmark, the government said. Financing will be channelled through the Danish export and investment fund EIFO.

Strategic Importance of Danish Production

  • Denmark said last year that the Ukrainian arms maker would start production of fuel for long-range missiles on Danish soil
  • By basing production abroad, Ukraine can shield its supply chain from Russian attacks, Danish Defence Minister Jeppe Bruus said in the statement
  • The Danish rocket fuel plant is set to be up and running by the end of 2027

Fire Point's European Partnerships

  • Fire Point signed agreements with more than a dozen European defence companies for radar, guidance and other systems for the Freyja missile defence project, aiming to give Ukraine a domestic alternative to the US-made Patriot system
Financial Context

($1 = 6.6599 Danish crowns)

Reporting Credits

(Reporting by Soren Jeppesen, editing by Terje Solsvik)

Key Takeaways

  • Denmark’s state-backed EIFO guarantee mitigates war-related risk, enabling Fire Point to borrow despite inability to access normal credit (via.ritzau.dk)
  • The Danish facility will produce solid rocket fuel for Fire Point’s long‑range systems like the FP‑5 Flamingo, enhancing supply chain resilience (en.wikipedia.org)
  • This initiative forms part of broader Danish‑Ukrainian defense cooperation, including the EU‑backed Freyja missile defense project and fast‑track laws to support strategic manufacturing (en.wikipedia.org)

References

Frequently Asked Questions

Why did Denmark guarantee a $113 million loan for Fire Point?
Due to the war in Ukraine, Fire Point could not borrow on ordinary terms, so Denmark backed the loan through its export and investment fund.
Who is providing the financing for Fire Point's Danish subsidiary?
Financing is being channelled through the Danish export and investment fund EIFO.
What is the purpose of Fire Point's production facility in Denmark?
The facility will produce fuel for long-range missiles to protect the Ukrainian supply chain from Russian attacks.
When will Fire Point's Danish rocket fuel plant begin operations?
The plant is expected to be operational by the end of 2027.
Which European companies are involved with Fire Point's missile project?
Fire Point has signed agreements with over a dozen European defence companies for the Freyja missile defence project.

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