Effektbolag

Effektbolag is a term used in Swedish corporate practice to describe a special‑purpose vehicle (SPV) created for a specific project or transaction. The term is not a formal legal category, but a descriptive label for a limited company (aktiebolag) whose sole purpose is to own and manage assets, contracts, and liabilities tied to a single project, thereby ring‑fencing risk from the sponsor’s other operations.

The main purpose of an effektbolag is to isolate financial and legal risk and to streamline project financing. Such a company is typically funded by a combination of equity from project sponsors and debt raised against the project’s cash flows or assets. It operates under a defined contractual framework that may include offtake or power agreements, construction or service contracts, insurance, and corporate governance arrangements. Because lenders often rely on the project’s own revenue and asset base, the SPV structure can facilitate obtaining external financing and clear risk allocation.

Common uses are in infrastructure, energy and real estate development, where a single project can be separated from the sponsor’s broader business. In energy, for example, an effektbolag might own a wind farm or solar park and enter into long‑term agreements with off-takers, while the sponsor maintains ownership of other ventures.

Criticism and risks include increased complexity, reduced transparency, and potential for misalignment of incentives or tax planning concerns. Regulators and auditors may scrutinize SPVs to ensure a legitimate business purpose, arm’s‑length terms, and proper financing accounting. See also SPV and projektbolag as related concepts.