Local Currency Financing

How Local Currency Financing works, its benefits, eligibility and how to apply.


With Local Currency Financing, UK Export Finance guarantees a buyer credit loan to an overseas borrower in local currency, financing the purchase of capital goods and/or services from a UK exporter. Loans can be made in one of around 40 eligible currencies, which are listed below.

A buyer credit in local currency essentially follows the same format as a conventional buyer credit in a standard currency such as sterling, euros or US dollars except that it is funded from a bank in the buyer’s country.

Local Currency Financing is particularly useful for projects which do not usually generate foreign currency revenue. For the overseas borrower (and buyer) it reduces foreign currency risk and avoids a variable debt service cost.

Eligible currencies

The following criteria must be met:

  • the exporter must be carrying on business in the UK
  • the contract value must be at least the equivalent of £5 million in an acceptable local currency
  • there must be an acceptable financial institution to act as the loan funder/arranger/agent

The following currencies are approved for Local Currency Financing:

Country Currency
Australia Australian dollar
Botswana Botswana pula
Brazil Brazilian real
Bulgaria Bulgarian lev
Canada Canadian dollar
Chile Chilean peso
China Chinese offshore yuan
Czech Republic Czech koruna
Denmark Danish krone
Egypt Egyptian pound
Hong Kong Hong Kong dollar
Hungary Hungarian forint
Iceland Icelandic krona
India Indian rupee
Indonesia Indonesian rupiah
Israel Israeli new shekel
Kenya Kenyan shilling
Kuwait Kuwaiti dinar
Malaysia Malaysian ringgit
Mauritius Mauritian rupee
Mexico Mexican peso
New Zealand New Zealand dollar
Nigeria Nigerian naira
Norway Norwegian krone
Oman Omani rial
Panama Panamanian balboa
Peru Peruvian sol
Philippines Philippine peso
Poland Polish zloty
Qatar Qatari riyal
Romania Romanian leu
Russia Russian ruble
Saudi Arabia Saudi riyal
Singapore Singapore dollar
South Africa South African rand
South Korea South Korean won
Sweden Swedish krona
Switzerland Swiss franc
Taiwan New Taiwan dollar
Thailand Thai baht
Trinidad and Tobago Trinidad and Tobago dollar
Turkey Turkish lira
United Arab Emirates (UAE) UAE dirham
Uganda Ugandan shilling
Uruguay Uruguayan peso
Vietnam Vietnamese dong

The following currencies are considered for local currency financing on a case-by-case basis:

Country Currency
Colombia Colombian peso
Croatia Croatian kuna
Dominican Republic Dominican peso
Ghana Ghanaian cedi
Jordan Jordanian dinar
Kazakhstan Kazakhstani tenge
Mongolia Mongolian togrog
Morocco Moroccan dirham
Pakistan Pakistani rupee
Serbia Serbian dinar
Sri Lanka Sri Lankan rupee
Zambia Zambian kwacha

We are willing to consider other currencies subject to satisfying eligibility standards.

For enquiries relating to currencies not listed above please contact

How it works

The diagram shows how UK Export Finance guarantees a loan to a buyer that is purchasing capital or semi-capital goods/services from a UK exporter, financed in a local currency.

How local currency financing works

How to apply

Read the guide to the Buyer Credit Facility for details of how to apply.

Contact our customer service team to get help with Local Currency Financing.

Customer service

Benefits of Local Currency Financing

The benefits of a buyer credit denominated in local currency are that:

  • the buyer/borrower has time to pay over a number of years at fixed or floating rates and repays in local currency
  • it is particularly suited to projects in sectors such as water/gas/electricity utilities, local transport and local municipalities which do not usually earn foreign currency revenue
  • it reduces foreign currency risk and eliminates a source of uncertainty over debt servicing cost of a loan for the overseas buyer/borrower
  • the bank in the buyer’s country receives a guarantee from us for full repayment of the loan plus interest

Maximum amount

The maximum amount of the loan is 85% of the contract value. A minimum of 15% of the contract value must be paid directly to the exporter by the buyer before the loan starts to be repaid. Of the 15%, a down payment of at least 5% should be received upon contract signature.

We can consider support for foreign content (that is, the cost to the exporter of purchasing goods or services from sub-contractors outside the UK) of up to 80% of the export contract’s value.


The period for repayment of the loan must be at least 2 years.


There is no fee for the application. Premium will be paid by the borrower through the loan agreement. The amount is determined on a case by case basis.


The above information is not intended to be a comprehensive description of Local Currency Financing and many details which are relevant to particular circumstances may have been omitted.

When considering applications, underwriters will look at each case on its merits.

This guide was last updated in November 2016.

Customer service

Published 24 November 2016
Last updated 11 January 2018 + show all updates
  1. The list of eligible currencies has been updated. This includes currencies approved for local currency financing and currencies which are considered for local currency financing on a case-by-case basis.
  2. Updated to add currencies - September 2017
  3. First published.