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, 1010KB, 1 page) . 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:
- application form for a standalone guarantee under the Bond Support Scheme (PDF, 359KB, 1 page)
For a UKEF facility line complete:
- application form for a facility line under the Bond Support Scheme (PDF, 940KB, 1 page)
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 email@example.com|
|Bank of Scotland Plc||Barry George, Senior Manager Trade Products||020 7400 firstname.lastname@example.org|
|Barclays Bank Plc||Ashish Anand, Investment Banking Division||020 7116 email@example.com|
|BNP Paribas||Amanda Hunter, Global Trade Solutions||020 7595 firstname.lastname@example.org|
|Clydesdale Bank Plc||Simon Hayden, Head of International Trade||07831 email@example.com|
|Deutsche Bank||John Griffith, Vice President – Trade Finance Sales||020 7545 firstname.lastname@example.org|
|HSBC Bank Plc||Dale Woodman, Product Manager, Global Trade & Receivables Finance, Europe||020 7992 email@example.com|
|ICICI Bank||Nishant Kumar, International Financial Institutions Group||020 7375 firstname.lastname@example.org|
|Lloyds Bank Plc||Barry George, Senior Manager Trade Products||020 7400 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|
|Northern Bank Ltd||Ruth Graham, Head of Trade and Export Finance||028 9004 email@example.com|
|The Royal Bank of Scotland Plc||Chris Duggan, SolutionsLine Team||0800 firstname.lastname@example.org|
|Santander UK Plc||Martin Hodges, Head of Trade||020 7029 email@example.com|
|Societe Generale||Yasmine Djeddai, Director, Export Finance||020 7676 firstname.lastname@example.org|
|Standard Chartered Bank||Mark Davey-Brown, Director, Transaction Banking||020 7885 email@example.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||Simon Hayden, Head of International Trade||07831 firstname.lastname@example.org|
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).
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
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.
Printable PDF version
Quick guide to the Bond Support Scheme (PDF, 99.9KB, 3 pages)
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 September 2015.