How UK Export Finance can help arrange attractive terms of finance for goods and services from the UK.
UK Export Finance, the UK’s export credit agency, has nearly 100 years’ experience in helping overseas borrowers, from corporate entities to public bodies and sovereign governments, to finance purchases from UK suppliers.
By either lending to you directly, or guaranteeing a loan from a commercial bank, UK Export Finance can provide support which could in turn finance up to 85% of the value of your UK export contract.
|The advantages of obtaining loan financing supported by UK Export Finance include:|
|• repayment terms of up to 10 years (and even longer in certain circumstances) as borrowing is based on the UK’s credit rating, resulting in a more competitive rate of interest from your lender|
|• competitive fixed or floating interest rates, including the use of capital markets|
|• competitive content rules, where up to 80% of the supported contract value can originate from another non-UK country|
|• potential to defer interest payments until project completion|
|• choice of major world currencies for your financing, including US Dollars, Euros and RMB. We can also consider other currencies depending on your requirements|
|• Islamic financing options (Shariah compliant, or Sukuk)|
|• accessing financing retrospectively, even after contract performance has commenced|
|• the ability to diversify your sources of funding|
|• supporting a range of structures including Public Private Partnerships and limited recourse Project Finance proposals|
Special credit terms
The OECD Arrangement on Officially Supported Export Credits governs the terms on which UK Export Finance provides its support. It allows certain projects to benefit from special credit terms, such as longer repayment periods. Typically, these include:
|Up to 18 years|
|• renewable energy projects|
|• nuclear power-plant projects|
|• water projects|
|Up to 14 years|
|• rail infrastructure projects|
|Up to 12 years|
|• non-nuclear power-plant projects|
To benefit from UK Export Finance support, the UK-based supplier has to be actively engaged in the production of goods within, and/or delivering services originating from, the UK. UK Export Finance charges a premium for its services on a case by case basis. The premium payment can be financed as part of the bank loan.
Examples of global reach
Over the years, UK Export Finance has helped thousands of overseas buyers around the world to finance their purchases of UK goods and services. In 2013-14 it supported more than US$3.6 billion of export contracts across a wide range of sectors including engineering, oil and gas, construction, infrastructure, water and healthcare.
A guarantee for a line of credit from UK Export Finance to Turkish buyers,SIF Ís Makinalari, a subsidiary of STFA and Isıklar Holding, ensured that the company could source £30 million of backhoe loaders from JCB in the UK.
UK Export Finance helped Swift Transport purchase over 300 buses from UK bus and coach manufacturer, Alexander Dennis, by structuring and providing loan guarantees totaling NZ$107.9 million.
UK Export Finance was able to provide a loan guarantee of US$60 million to help Sri Lanka’s government pay Welsh company Mabey Bridge for the supply and installation of essential bridges.
UK Export Finance was able to support the project sponsors of the Dubai World Trade Centre District development with the financing of a US$110 million buyer credit under the Direct Lending Facility, enabling UK contractor Carillion to secure a substantial construction contract.
By providing reinsurance services on the €54 million UK portion of the contract for expansion work at the Julius Nyerere International Airport in Dar es Salaam, UK Export Finance was able to support the work carried out by the UK’s BAM Nuttall.
By working with partner export credit agencies and banks, UK Export Finance provided US$870 million of financing for the construction of a US$19 billion petrochemical facility by Saudi Aramco and the Dow Chemical Company in Saudi Arabia. This helped UK companies such as Jacobs, Foster Wheeler and Fluor to secure significant contracts on the project.
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