UK Export Finance, the UK’s export credit agency, is inviting partners to apply to help it deliver £3 billion of export credit loans as part of its enhanced direct lending facility.
The government department, which during the last five years has provided over 1,500 guarantees and insurance policies with an exposure value in excess of £14 billion, is setting up a panel of suitably qualified partner banks and/or financial organisations to help arrange and administer the direct lending facility (DLF) export credit loans.
Under the DLF, UK Export Finance (UKEF) will provide loans to overseas buyers in order to finance the purchase of goods and services from UK exporters. Loans are available to cover new international sales by any business exporting from the UK, to any country where UKEF medium term cover is available, and can be made in Sterling, US Dollars, Euro or Japanese Yen.
David Godfrey, Chief Executive of UKEF said:
As the UK’s export credit agency, UKEF has a key role in providing an attractive financing platform for UK exporters. Our direct lending facility is one of the most competitive loan products from any export credit agency. It supplements the financial support for exporters from the commercial sector and enables banks to help more customers take advantage of international sales.
In exchange for working with UKEF to provide loans under the DLF, partnering institutions can negotiate fees from borrowers in the normal way and will have the opportunity to develop new business.
Financial organisations wishing to apply to join the DLF panel should visit www.gov.uk/dlf-partners for more information. Applications should be submitted on or before 19 September 2014.
Exporters can find more information about the DLF at: www.gov.uk/direct-lending-scheme
For loans of less than £5 million, UKEF may offer alternative export finance options. For those over £50 million, UKEF expects funding to be a combination of DLF and commercial financing such as a buyer credit/export refinancing facility.
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, petrochemicals, construction, oil and gas, mining and metals, telecommunications, and transport.
- The enhanced DLF was announced by the Chancellor of the Exchequer in March 2014. Although no loans have been disbursed to date, a number of transactions are being considered.
- Interest on the DLF will be charged at a fixed rate based on the Commercial Interest Reference Rates in accordance with the OECD Arrangement.
- UKEF has a network of Regional Export Advisers supporting export businesses.
- The Prime Minister launched the government’s ‘Exporting for Growth’ challenge in 2011, with the goal of increasing exports to £1 trillion per annum by 2020.
Media enquiries: Julia Beck, Media Relations Manager
Telephone +44 (0)7791 797 810 or out-of-hours +44 (0)20 7215 3234/3505