Guidance

UK Export Finance Direct Lending partner selection procedure

Partnering arrangements for the Direct Lending Facility

This guidance was withdrawn on

The Direct Lending partner selection procedure closed on Friday 19 September 2014.

For more information about the Direct Lending Facility visit www.gov.uk/direct-lending-scheme.

Overview

Under the enhanced Direct Lending Facility (DLF), UK Export Finance (UKEF) is prepared to fund £3 billion worth of medium and long-term export credit loans.

To help arrange and administer the DLF export credit loans, UKEF is setting up a panel of suitably qualified partner banks and/or financial organisations.

How to Apply

To apply for enrolment on the Panel, applicants should:

  1. read the DLF main features document (PDF, 83.6KB, 3 pages) to understand how the facility works

  2. read the Request for Application (PDF, 336KB, 9 pages) which provides guidance and instructions on applying to join the panel arrangement

  3. read the Panel Memorandum (PDF, 326KB, 59 pages) concerning DLF Partnering

  4. read, sign and submit the Application Form (XLSM, 344KB)

If you are successful in your application you will be required to sign the Panel Memorandum within 30 days of being asked to do so.

Please note, the Panel Memorandum was amended on 11 September 2014, to take into account our responses to substantive questions (PDF, 117KB, 3 pages) . The amendments relate to clarification points, and do not alter the Terms and Conditions of the Panel Memorandum. A marked-up version of the changes of the Panel Memorandum can be found here (PDF, 339KB, 60 pages) .

Prospective services

Applicants can apply to offer specified services which can be provided by different members of their group.

The Services required are:

  • arranging loans for overseas borrowers with contracts for UK goods and/or services
  • loan administration services (loan sizes are likely to range from around £5 million to well over £50 million)
  • security trustee services (when applicable)
  • inter creditor services (when applicable)

UKEF will not issue an order for arranger Services in respect of any loan arrangement, unless an order for the administration Services can be issued at the same time.

Benefits of partnering with UKEF on a direct loan

Panel members will have the opportunity to:

  • win mandate(s) from the exporter and/or the overseas buyer for the Services required
  • receive appropriate fees from the borrower(s). In addition UK Export Finance will provide a contribution towards the loan administration costs - subject to Terms and Conditions
  • provide other financial services to the exporter and/or the overseas buyer

Basic eligibility

The selection criteria are contained within the Application Form (XLSM, 344KB) . In general applicants should have:

  • a good credit rating; and/or
  • recognised and demonstrable agency expertise; and/or
  • experience of participating in an export credit agency programme; and/or
  • experience of working in a trade finance programme (for example a Multilateral Development Bank trade finance programme); and/or
  • experience of handling a wide range of trade finance transactions.

Timings

UKEF’s application process is now open. Applicants should reply no later than 5pm (BST) on Friday 19 September 2014.

Questions and clarifications

You may raise questions or seek clarification regarding any aspect of this selection process and related documentation at any time prior to the clarification closure date, 5pm on 12 September. Clarification questions must be submitted via the below contact details. To ensure all applicants have equal access to information, UKEF will publish responses to substantive questions (PDF, 117KB, 3 pages) .

Direct Lending Facility partnership enquiries

Disclaimer

This webpage has been prepared for information purposes only and does not constitute legal, financial or investment advice. Any party entering into a legal agreement should obtain comprehensive legal and financial advice. This document does not constitute an offer or commitment of any kind on the part of Her Britannic Majesty’s Secretary of State acting by the Export Credits Guarantee Department (“UK Export Finance”) to accept any DLF Partnership application. Any decision to accept an application will be subject to, among other things, all necessary internal approvals and consents, satisfactory due diligence and definitive final documentation.

Published 30 July 2014
Last updated 2 September 2014 + show all updates
  1. Answer to clarification questions updated
  2. PDF containing latest answers to clarification questions updated
  3. Full details added
  4. First published.