Carillion wins contract in UAE with UKEF-backed loan to overseas buyer
The first ever use of UK Export Finance’s Direct Lending Facility, in partnership with a bank, helped Carillion win a major new construction contract in the UAE.
When Wolverhampton firm Carillion wanted to develop its business in the Middle East, UK Export Finance (UKEF) increased the firm’s ability to bid for and win contracts by helping make sure its buyers could access competitive finance. Our direct lending facility and buyer loan guarantees provided support for an important contract won by Carillion for the Dubai World Trade Centre global conference hub worth US$110m.
This is a significant and very important contract for Carillion, which will help us to build on our success in the Middle East. The Direct Lending Facility is a major new development that is providing us with the support we need to achieve our export goals.
Richard Howson, Chief Executive of Carillion
Carillion is one of the UK’s leading integrated support services companies, headquartered in Wolverhampton, with annual revenues of more than £4 billion.
In recent years UK Export Finance (UKEF), the UK’s export credit agency, has supported the company in winning a series of major contracts in the UAE, including one for work on the Dubai World Trade Centre global conference hub worth US$110m. Dubai World Trade Centre is the largest events facility in the Middle East, attracting more than 2.2 million visitors a year. The Carillion contract includes a hotel, an office block and associated infrastructure.
We provided our first ever buyer credit loan from our new Direct Lending Facility (DLF). Under the £3bn DLF, UKEF can provide loans to overseas buyers to finance the purchase of goods and services from UK exporters in Sterling, US Dollars, euro or Japanese Yen.
The Carillion loan was arranged by Deutsche Bank, which is also providing 50% of the lending. The collaboration is a good example of how UKEF works to complement and not compete with the financial support for exporters available from the commercial sector. Deutsche Bank is a member of an initial panel of 20 partner institutions which help UKEF deliver the DLF by acting as arrangers and agents.
UKEF support also helps the UK firms working with Carillion, right down the export supply chain. UK companies benefiting indirectly in this case ranged from other multinationals to small firms specialising in the provision of a range of goods and services.
With our Direct Lending Facility, overseas buyers of UK goods and services can feel assured of a reliable funding source – the UK government – at the lowest fixed interest rates set by the OECD for such schemes.
More UK exporters are now accessing the facility and using it to win orders.
Margaret Eyres, Head of Direct Lending, UK Export Finance
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