Under the scheme, UKEF – the UK’s export credit agency - provides a partial guarantee to a bank issuing a contract bond in support of UK exports, or indemnifying an overseas bank providing the bond. UKEF’s guarantee protects the bank against an exporter’s failure to reimburse it for a call on the bond. UKEF is able to guarantee up to 80% of the bond’s value.
LFC joins a group of 20 banks and financial institutions which act as partners to UKEF in delivering the bond support scheme.
UKEF chief executive David Godfrey said:
I am delighted that this agreement with London Forfaiting will enable more exporters to access our support. UK Export Finance has an important role to play in backing British exporters, working alongside our private sector partners to help make exports happen.
LFC Head of UK Marketing Ian Lucas said:
As a company specialising in the arrangement and provision of forfaiting and other trade-related finance products, LFC is constantly seeking new and innovative ways of expanding the range of products and services it can offer its broad client base.
In 2014, LFC signed up to another UKEF scheme, its export working capital scheme, and we believe the bond support scheme is a further valuable addition to the facilities we can offer UK exporters. We look forward to continuing to work with UKEF to support the export financing requirements of our customers.
Notes for Editors
UK Export Finance is the UK’s export credit agency. It supports long term economic growth and competitiveness by complementing the private market with insurance for exporters, loan guarantees to banks, and support for and provision of loans to overseas buyers of UK goods and services.
Sectors in which UKEF has supported exports include: aerospace, construction, oil and gas, mining and metals, petrochemicals, telecommunications, and transport.
UKEF has a regional network of 24 export finance advisers supporting export businesses.
UKEF supports exporters with a range of export finance and insurance products.