Bond Support Scheme
Find out about the Bond Support Scheme - how it works, its benefits and how to apply.
Our Bond Support Scheme provides partial guarantees to banks in support of UK exports to help banks meet demand for contract bonds.
When an exporter wins an export contract, they may be required to provide a contract bond. One solution could be for the exporter’s bank to issue the required bonds to the overseas customer on the exporter’s behalf.
However, in order to provide this bond, the bank is likely to require collateral (in the form of a cash deposit) to secure the bond, which could put pressure on the exporter’s working capital or cash flow. We can provide a guarantee of up to 80% of the value of the bond. This allows banks to release the cash needed to secure the bond for the exporter to use as working capital.
There is no maximum value for each bond and no maximum or minimum term for a guarantee.
How it works
Benefits
Under the scheme banks:
- can issue a bond (or indemnify the issue of) a bond without incurring the full risk
- may increase the amount of working capital available to the exporter by relieving pressure on the exporter due to the requirement to provide cash deposits as collateral to secure the bond
- receive a guarantee from UKEF 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
- may, for the duration of our guarantee, be able to increase its risk appetite for the exporter
Eligibility criteria
To be eligible for support under our Bond Support Scheme, the transaction must satisfy UKEF’s eligibility criteria, which includes the requirements that:
- the exporter must be carrying on business in the UK
- the exporter must have entered, or be intending to enter, into a contract for the supply of goods and/or services with a company or other organisation that carries on business outside the UK
All transactions supported by UKEF must satisfy:
- our foreign content policy
- our anti-bribery and corruption and environmental, social and human rights due diligence processes
The transaction may not be supported if there are sanctions imposed on the country of the overseas customer.
Cost
The guaranteed bank pays us a guarantee fee. This is a proportion of the fee the bank receives from the exporter for issuing (or indemnifying the issue of) the bond.
How to apply
To access Bond Support, exporters should discuss their potential application with their bank.
Exporters who bank with one of the names listed below may be able to benefit from a streamlined process. Five banks have signed up to access the scheme directly. There is no need to fill in any of the forms on this page.
- contact details for banks who access the scheme directly
- contact details for banks who access the scheme indirectly via application forms
To find out more about our Bond Support Scheme or to discuss eligibility for our support, contact our customer services team.
Contact customer.service@ukexportfinance.gov.uk or call +44 (0)20 7271 8010.
Contact details for approved lenders
Access our Bond Support Scheme directly through your bank
You do not need to complete the forms on this page if you bank with:
- Barclays Bank Plc
- HSBC
- Lloyds Banking Group/Bank of Scotland Plc
- The Royal Bank of Scotland Plc/National Westminster Bank Plc/Ulster Bank
- Santander UK Plc
Contact your bank for further guidance.
| Lender | Contact | Telephone | |
|---|---|---|---|
| Barclays Bank Plc | Mathew Enright, Vice President, Trade and Working Capital | 020 7116 3999 | mathew.enright@barclays.com |
| HSBC Bank Plc | Liz Ambler (London and South East) | N/A | elizabethambler@hsbc.com |
| Matt Osborn (Midlands, South West and Wales) | N/A | matt.j.osborn@hsbc.com | |
| Jill Hague (North, including Scotland and Northern Ireland) | N/A | jillhague@hsbc.com | |
| Lloyds Banking Group/Bank of Scotland Plc | Trade Finance | N/A | TradeFinance@lloydsbanking.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 |
| Ulster Bank | Gavin Murphy, Global Trade Finance | 028 9027 6632 | gavin.murphy@ulsterbankcm.com |
| Santander UK Plc | Trade and Supplier Finance | N/A | tradeandsupplierfinanceproduct@santander.co.uk |
Other participating banks
You can also access our Bond Support Scheme directly through another approved lender.
| Lender | 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 |
| BNP Paribas | Alexandre de Vathaire | +33 (0) 1 42 98 00 29 | alexandre.devathaire@bnpparibas.com |
| Clydesdale Bank Plc | Simon Hayden, Trade Finance Manager | 07831 318295 | simon.hayden@cybg.com |
| Danske Bank Northern Ireland (businesses based and registered in 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 | Peter Sargent | 020 7621 6038 | peter.sargent@dnb.no |
| Gulf International Bank (exports to Gulf Cooperation Council States only) | Charbel Khazen, Senior Vice President & London Branch Manager | 020 7393 0442 | charbel.khazen@gibuk.com |
| ICICI Bank | Nishant Kumar, International Financial Institutions Group | 020 7375 5097 | nishant.kumar@icicibank.com |
| London Forfaiting Company | Ian Lucas, Head of UK Marketing | 020 7397 1527 | ian.lucas@forfaiting.com |
| National Bank of Abu Dhabi | Richard Collens, Managing Director, Corporate & Investment Banking UK | 020 7201 3347 | richard.collens@nbad.com |
| Societe Generale | Yasmine Djeddai, Director, Export Finance | 020 7676 6176 | yasmine.djeddai@sgcib.com |
| Standard Chartered Bank | Karan Jain and Lucy Rahal | 020 7885 8888 | lucy.rahal@sc.com and karan.jain@sc.com |
| State Bank of India UK | Paul Tromans, Area Branch Manager | 01902 716050 | mgr.wolverhampton.sbiuk@statebank.com |
| Yorkshire Bank | Simon Hayden, Trade Finance Manager | 07831 318295 | simon.hayden@cybg.com |
Application forms
For those lenders who have not signed up to access UKEF support, the following forms should be used to access our support
- a single export contract:
- multiple export contracts with nominated buyers:
- a contract for a direct supplier to an exporter:
- our
Once a UKEF guarantee facility has been agreed and a facility letter issued:
- individual guarantee request:
More information
Read our guide for applicants on business processes and factors, to find out how we make decisions on applications.
Last updated 16 October 2017 + show all updates
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Updated following announcement that small businesses can now access government-backed export finance directly from their banks.
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Change to Security of Information Arrangements
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First published.