£3 billion of export credit loans
UKEF Seeks Partners for £3 Billion Lending
UK Export Finance (UKEF), the UK’s export credit agency, is inviting partners to apply to help it deliver £3 billion of export credit loans as part of its enhanced direct lending facility (DLF). The government department, which during the last five years has provided over 1,500 guarantees and insurance policies with an exposure value in excess of £14bn, is setting up a panel of suitably qualified partner banks and/or financial organisations to help arrange and administer the DLF export credit loans.
How the Direct Lending Facility Works
Under the DLF, UKEF will provide loans to overseas buyers in order to finance the purchase of goods and services from UK exporters. Loans are available to cover new international sales by any business exporting from the UK, to any country where UKEF medium term cover is available, and can be made in Sterling, US Dollars, Euro or Japanese Yen.
David Godfrey, Chief Executive of UKEF said:
“As the UK’s export credit agency, UKEF has a key role in providing an attractive financing platform for UK exporters. Our direct lending facility is one of the most competitive loan products from any ECA. It supplements the financial support for exporters from the commercial sector and enables banks to help more customers take advantage of international sales.”
Benefits for Partnering Financial Institutions
In exchange for working with UKEF to provide loans under the DLF, partnering institutions can negotiate fees from borrowers in the normal way and will have the opportunity to develop new business.
Application Process and Deadlines
Financial organisations wishing to apply to join the DLF panel should visit https://www.gov.uk/dlf-partners for more information. Applications should be submitted on or before 19 September 2014.
Exporters can find more information about the DLF at: https://www.gov.uk/direct-lending-scheme#how-to-apply
Alternative Export Finance Options Available
For loans of less than £5m, UKEF may offer alternative export finance options. For those over £50m, UKEF expects funding to be a combination of DLF and commercial financing such as a buyer credit/export refinancing facility.
