Competitive financefor your purchasesf rom UK exporters

gov.uk/uk-export-finance

Helping you buyfrom the UK

In today’s globalised market, more and more overseas buyers are sourcing their goods and services from the UK, drawing upon the high levels of experience and expertise available across a wide range of industries.

If you are planning to import capital or semi-capital goods or services from the UK, then it is possible that you will need to arrange attractive terms of finance for your purchases.

This is where UK Export Finance can help.

UK Export Finance has nearly 100 years’ experience in helping overseas borrowers 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 per cent of the value of your UK export contract.

The UK has always had a strong tradition of innovation and excellence. In today’s globalised market, more and more overseas buyers are sourcing their goods and services from the UK, drawing upon the high levels of experience and expertise we have to offer. UK Export Finance can help overseas buyers access these opportunities through the competitive financing we offer.

David Godfrey CEO UK Export Finance

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)

competitive fixed or floating interest rates, including the use of capital markets

competitive foreign content rules, where up to 80 per cent of the supported contract value can originate from a non-UK country

the possibility of deferring interest payments until project completion

the choice of major world currencies for your financing, including US Dollars, Euros, RMB and Rupee. We can also consider other currencies depending on your requirements

the possibility of Islamic financing (Shariah compliant, or Sukuk)

the possibility of accessing financing retrospectively, even after contract performance has commenced

ability to diversify your sources of funding.

Why useUK Export Finance

UK Export Finance can help a range of overseas borrowers, from corporate entities through to public bodies and sovereign governments, to purchase from a UK supplier.

T o benefit from UK Export Finance’s support, the UK based supplier has to be actively engaged in the production of goods/within, and/or delivering services originating from, the UK.

With a UK Export Finance guarantee in place, your borrowing can benefit from being based on the UK’s rating, resulting in a more competitive rate of interest from your lender.

UK Export Finance can also support Public Private Partnerships, which are increasingly becoming the finance structure of choice with which governments and public-sector organisations fund their construction and infrastructure projects. It can also support limited recourse Project Finance Proposals.

UK Export Finance charges a premium for its services on a case by case basis. You can also finance the premium payment as part of your bank loan to streamline your overall borrowing.

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 –

Renewable energy projects Up to 18 years

Nuclear power-plant projects Up to 18 years

Water projects Up to 18 years

Rail infrastructure projects Up to 14 years

Non-nuclear power plant projects Up to 12 years

UK Export Financein India

Refinery contracts

When Reliance Industries Limited of India was expanding its Petrochemicals facilities and setting up the new Petcoke Gasification and Refinery Off-Gas Cracker, it sought the support of UK Export Finance (UKEF) for a US$300 million facility to enable it to finance the purchase of goods and services from the UK. 

UKEF was able to support the transaction by providing a 100% guarantee cover for an export credit loan facility on the basis among other things, that UK suppliers including Bechtel (UK), Jacobs and Foster Wheeler are providing services for the above expansion/new facilities at Jamnagar and Dahej in the state of Gujarat, India.

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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$3.6bn of export contracts across a wide range of sectors, including engineering, oil and gas, construction, infrastructure, water and healthcare.

Guaranteeing credit

A guarantee for a line of credit from UK Export Finance for the Brazilian energy company Petrobras ensured that the company could source up to US$600m of equipment and services from the UK. This also meant that Petrobras could continue to benefit from the UK’s established expertise in this area.

Solutions provider

When Swift Transport Ltd – an Infratil group company and parent company of bus operator NZ Bus Ltd – was considering a new fleet of vehicles for its transport service programme, it was keen to look at the solutions UK based companies could offer.

UK Export Finance helped Swift Transport Ltd purchase over 300 buses from UK bus and coach manufacturer, Alexander Dennis Ltd, by structuring and providing loan guarantees totalling NZ$107.9m on Swift Transport’s borrowing. Swift Transport Ltd were guaranteed by parent company Infratil Ltd – an infrastructure investment company based in New Zealand.

Building bridges

By working with the Ministry of Highways, Ports & Shipping in Sri Lanka, UK Export Finance was able to provide a loan guarantee of US$60m to help the country’s government pay Welsh company Mabey Bridge for the supply and installation of essential bridges.

Because UK Export Finance is a UK Government Department and therefore represents UK sovereign risk, banks can reflect this in reduced pricing as well as provide longer terms than might otherwise be available. A guarantee also opens up an additional source of liquidity for borrowers, allowing them to preserve existing bank limits for other financing requirements.

Carillion Construction a UK exporter which has benefited from a UK Export Finance loan to their overseas buyers

About UK Export Finance

UK Export Finance is the operating name of the Export Credits Guarantee Department and is the UK’s official export credit agency. It was founded in 1919 and is the world’s oldest export credit agency.

UK Export Finance provides support within the terms of the OECD Arrangement on Officially Supported Export Credits.

Next stepsContact UK Export Finance to find out how we can help you as an overseas buyer.

Information on our products and services can also be found on our website gov.uk/uk-export-finance

Or contact us: +44 (0)20 7271 8010 internationalenquiries@ukef.gsi.gov.uk

UK Export Finance We are the UK’s export credit agency. gov.uk/uk-export-finance

How to identify UK suppliersUK Export Finance works closely around the world with the Foreign & Commonwealth Office and UK Trade & Investment (UKTI) to promote exports from the UK.

UKTI is the Government department that champions British business. UKTI’s worldwide network of experts can put you directly in touch with UK exporters – acknowledged as some of the world’s most highly skilled and innovative businesses.

To find how, go to gov.uk/ukti or contact the Commercial Section of your local British Embassy or High Commission.

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© Crown copyright October 2014

Image credits cover: © iStock/Marcel Clemens/Nasa; p4: © Crown Copyright, © Alexander Dennis Ltd, © Mabey Bridge; p6: © Crown Copyright

This document has been prepared for information purposes only and does not constitute legal, financial or investment advice; nor does it constitute an offer or commitment of any kind on the part of the Export Credits Guarantee Department to provide any form of support or assistance; and it is not intended to create any legally binding obligations.