Bond support scheme
What the Bond Support Scheme is, how it works, its benefits and information on how to apply.
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 Guidance on Applying for the Bond Support Scheme (PDF, 100KB, 5 pages) and complete an Exporter Questionnaire (PDF, 737KB) . 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:
- application form for a drawing under a facility line for the Bond Support Scheme (PDF, 1.44MB, 1 page)
|Australia and New Zealand Banking Group Ltd||Craig Jones, Head of Specialised Finance, Europe & America||020 3229 firstname.lastname@example.org|
|Bank of Ireland||Willie McCoy, Senior Manager, Trade Finance Business Development||028 90 email@example.com|
|Bank of Scotland Plc||Dale Woodman, Product Manager, Trade Product||020 8936 firstname.lastname@example.org|
|Barclays Bank Plc||Ashish Anand, Investment Banking Division||020 7116 email@example.com|
|BNP Paribas||Alexandre de Vathaire||+33 (0) 1 42 98 00 firstname.lastname@example.org|
|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 email@example.com|
|Deutsche Bank||John Griffith, Vice President – Trade Finance Sales||020 7545 firstname.lastname@example.org|
|DNB Bank ASA||Alex Collingwood, First Vice President – Trade Finance Sales||020 7621 email@example.com|
|Gulf International Bank (exports to Gulf Cooperation Council States only)||Charbel Khazen, Senior Vice President & London Branch Manager||020 7393 firstname.lastname@example.org|
|HSBC Bank Plc||Kamo Margaryan, Senior Trade Product Manageremail@example.com|
|ICICI Bank||Nishant Kumar, International Financial Institutions Group||020 7375 firstname.lastname@example.org|
|Lloyds Bank Plc||Dale Woodman, Product Manager, Trade Product||020 8936 email@example.com|
|London Forfaiting Company||Ian Lucas, Head of UK Marketing||020 7397 firstname.lastname@example.org|
|National Bank of Abu Dhabi||Steve Barlow, Head of Client Relationships UK||020 7201 email@example.com|
|National Westminster Bank Plc||Chris Duggan, SolutionsLine Team||0800 firstname.lastname@example.org|
|The Royal Bank of Scotland Plc||Chris Duggan, SolutionsLine Team||0800 email@example.com|
|Santander UK Plc||Martin Hodges, Head of Trade||020 7029 firstname.lastname@example.org|
|Societe Generale||Yasmine Djeddai, Director, Export Finance||020 7676 email@example.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 firstname.lastname@example.org|
|Ulster Bank||Gavin Murphy, Global Trade Finance||028 9027 email@example.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
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).
To be eligible for support under the Bond Support Scheme as an exporter, you must:
- be carrying on business in the UK, the Isle of Man or the Channel Islands
- have signed, or be intending to sign, a contract for the supply of goods and/or services with a company or other organisation that carries on business within the UK, the Isle of Man or the Channel Islands
- show that at least 20% of the value of your contract represents UK content1
There is no maximum value for each bond.
There is no maximum or minimum term for a guarantee.
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.
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.
Appeal a decision made by UKEF (PDF, 122KB, 1 page)
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 August 2017.
1: UK content is the export or UK supply contract’s value less the cost to you of buying any goods and/or services from suppliers outside the UK, the Isle of Man or the Channel Islands, to be supplied directly to the buyer or otherwise “as is”. Materials and components in goods manufactured or assembled in the UK, the Isle of Man or the Channel Islands, which would be eligible for a certificate of UK origin from a British Chamber of Commerce are treated as UK content
2: A UK supply contract will be export-related if (i) the buyer under the contract will export the relevant goods and/or services or use them solely in making goods, or performing services, which the buyer will export or (ii) you have received written confirmation from the Exporter that the relevant goods and/or services are required, entirely or to a material extent, to enable the Exporter to fulfil current and/or future export orders or (iii) we have agreed with you in writing that it is an export-related supply contract.