GOV.UK
Guidance
Bond support scheme
What the Bond Support Scheme is, how it works, its benefits and information on how to apply.
Overview
Under the Bond Support Scheme we provide partial guarantees to banks in support of UK exports.
Where a bank issues a contract bond (or indemnifies an overseas bank providing the bond) in respect of a UK export contract, we can typically guarantee up to 80% of the value of the bond.
Support can be accessed either through:
-
a standalone facility for a single export contract
-
through a facility line for multiple export contracts with nominated buyers
We have developed an interactive toolkit to support banks in accessing our Bond Support Scheme. Read the toolkit for a step-by-step guide to the Scheme.
How to apply
Exporters should not contact us directly. The scheme can only be accessed through banks that have signed up to participate in the scheme. You can find a full list of UK participating banks below.
The steps to apply for a guarantee under the Bond Support Scheme are:
-
Read this guide to the Bond Support Scheme to check whether you wish to apply.
-
Read the Guide for applicants on business processes and factors to find out how we make decisions on applications.
-
Consider whether you require a standalone facility or a facility line. A facility line will be more suitable for multiple contracts.
-
Apply directly to a participating bank (listed below). You will need to read the and complete an . The Exporter Questionnaire may not be required for repeat business. You will need to complete the appropriate application form.
For a stand-alone facility complete:
For a UKEF facility line complete:
Once a UKEF guarantee facility has been agreed and a facility letter has been issued, individual guarantees can be requested by completing:
| Bank | Contact | Telephone | |
|---|---|---|---|
| Australia and New Zealand Banking Group Ltd | Craig Jones, Head of Specialised Finance, Europe & America | 020 3229 2689 | craig.jones@anz.com |
| Bank of Ireland | Willie McCoy, Senior Manager, Trade Finance Business Development | 028 90 433291 | willie.mccoy@boi.com |
| Bank of Scotland Plc | Dale Woodman, Product Manager, Trade Product | 020 8936 5654 | dale.woodman@lloydsbanking.com |
| Barclays Bank Plc | Ashish Anand, Investment Banking Division | 020 7116 4466 | ashish.anand@barclays.com |
| BNP Paribas | Alexandre de Vathaire | +33 (0) 1 42 98 00 29 | alexandre.devathaire@bnpparibas.com |
| Clydesdale Bank Plc | John Brown, Head of Trade Finance | 07464 494844 | john.brown@CYBG.com |
| Danske Bank Northern Ireland | Ruth Graham, Head of Trade and Export Finance | 028 9004 8683 | ruth.graham@northernbank.co.uk |
| Deutsche Bank | John Griffith, Vice President – Trade Finance Sales | 020 7545 3505 | john.griffith@db.com |
| DNB Bank ASA | Alex Collingwood, First Vice President – Trade Finance Sales | 020 7621 6038 | alex.collingwood@dnb.no |
| Gulf International Bank (exports to Gulf Cooperation Council States only) | Charbel Khazen, Senior Vice President & London Branch Manager | 020 7393 0442 | charbel.khazan@gibuk.com |
| HSBC Bank Plc | Kamo Margaryan, Senior Trade Product Manager | n/a | kamo.margaryan@hsbc.com |
| ICICI Bank | Nishant Kumar, International Financial Institutions Group | 020 7375 5097 | nishant.kumar@icicibank.com |
| Lloyds Bank Plc | Dale Woodman, Product Manager, Trade Product | 020 8936 5654 | dale.woodman@lloydsbanking.com |
| London Forfaiting Company | Ian Lucas, Head of UK Marketing | 020 7397 1527 | ian.lucas@forfaiting.com |
| National Bank of Abu Dhabi | Steve Barlow, Head of Client Relationships UK | 020 7201 3307 | steve.barlow@nbad.com |
| National Westminster Bank Plc | Chris Duggan, SolutionsLine Team | 0800 2100235 | internationalbanking@natwest.com |
| The Royal Bank of Scotland Plc | Chris Duggan, SolutionsLine Team | 0800 2100235 | internationalbanking@rbs.co.uk |
| Santander UK Plc | Martin Hodges, Head of Trade | 020 7029 4316 | martin.hodges@santander.co.uk |
| Societe Generale | Yasmine Djeddai, Director, Export Finance | 020 7676 6176 | yasmine.djeddai@sgcib.com |
| Standard Chartered Bank | Amit Garg/ Katharine Steger/Ramsha Cheema/Claudia Lopes/Clint Eastwood | 020 7885 8888 | ECAProgrammes@sc.com |
| State Bank of India UK | Paul Tromans, Area Branch Manager | 01902 716050 | mgr.wolverhampton.sbiuk@statebank.com |
| Ulster Bank | Gavin Murphy, Global Trade Finance | 028 9027 6632 | gavin.murphy@ulsterbankcm.com |
| Yorkshire Bank | John Brown, Head of Trade Finance | 07464 494844 | john.brown@CYBG.com |
How it works
How it works if a local bank is required to issue bonds
Benefits of the Bond Support Scheme
The benefits are:
- the guaranteed bank is able to issue the bond, or indemnify an overseas bank providing the bond
- the bank receives a guarantee from us to cover the percentage of the amount due to it if the exporter fails to reimburse the bank following a call being made on the bond by the buyer
- the bank may, for the duration of our guarantee, be able to increase its risk appetite for the exporter
Risks covered
The guaranteed bank is protected against the failure of the exporter to reimburse it under its counter-indemnity if a bond is called and the bank is obliged to pay the beneficiary (buyer).
Eligibility
The following criteria must be met:
- the exporter must be carrying on business in the UK
- the bond must relate to a contract between the exporter and a buyer carrying on business outside the United Kingdom under which the exporter supplies goods and/or services to that buyer
- the export contract must have a minimum of 20% UK content
Maximum amount
There is no maximum value for each bond.
Guarantee period
There is no maximum or minimum term for a guarantee.
Cost
The guaranteed bank pays us a guarantee fee, which is typically a proportion of the fee which the bank receives from the exporter for issuing (or indemnifying the issue of) the bond in question.
Printable PDF version
Appeals
Our export finance advisers and underwriting staff seek to work with exporters to help structure transactions and prepare applications that have a good chance of being approved. However, on occasion we are unable to progress applications (for example if a case doesn’t meet our minimum risk standards). On these occasions we will explain our reasons for declining the application to the exporter.
The exporter has the right to appeal such a decision, which will involve a review of the application by UKEF officials not directly involved in the initial decision. The exporter will be informed of the outcome and how it was decided. The appeal outcome will be final.
Disclaimer
This information is not intended to be a comprehensive description of our Bond Support Scheme and many details which are relevant to particular circumstances may have been omitted. When considering applications from participating banks, UK Export Finance will look at each case on its merits.
This information was last updated in September 2015.