UK Export Finance (UKEF), the UK’s export credit agency, will participate in a programme of support for the new Bombardier CSeries aircraft. It will provide guarantees to its Canadian equivalent, Export Development Canada (EDC), to reflect the UK-manufactured content.
The wings of the aircraft are being manufactured at Bombardier’s plant in Belfast, supporting up to 800 jobs directly and supporting a further 2000 jobs in the supply chain. UKEF will provide guarantees to EDC for around 20% of the value of loans extended by EDC to overseas buyers of the aircraft, reflecting the UK-manufactured proportion.
Bombardier and EDC announced the export credit support at the Farnborough Air Show on 14 July. Bombardier’s investment in the UK, which has included a complex research and development programme, as well as the construction of a new factory, is one of the largest ever single inward investments in Northern Ireland. There are 495 orders and commitments for the aircraft, which successfully completed its first flight in 2013. First deliveries are expected in 2015.
UKEF has a long history of providing support to the UK aerospace sector. Its support for Bombardier aircraft will join its ongoing support for exports of Airbus aircraft and Rolls-Royce engines.
Through its support for UK aerospace exports, UKEF is helping to increase the UK’s exports and make the UK more competitive. Its support is provided in line with the terms of the OECD Aircraft Sector Understanding (ASU), which ensures a level playing field for such official support among signatory nations.