UK Export Finance

The UK Export Finance (UKEF) offers a buyer credit facility. Provided guarantees cover the full repayment of a loan plus interest to foreign banks that issue loans in local currencies to a buyer of British capital goods and/or services. The guarantee reduces foreign currency risks for overseas borrowers and buyers of British products/services and avoids fluctuating debt services costs. By this offering, UKEF intends to facilitate overseas business opportunities of British exporters, in particular for projects that usually generate revenues in local currencies, such as utilities, local transport and projects in local municipalities.

Requirement that British content is purchased through the loan guaranteed by UKEF. Up to 80 per cent of the export contract´s value can be goods or services purchased by the British exporter from sub-contractors outside the United Kingdom.

Eligible countries and product specific variations are posted at:  https://www.gov.uk/guidance/country-cover-policy-and-indicators

Countries excluded from all UKEF services are: Afghanistan, Burundi, Kosovo, Libya, North Korea, Palestinian Authority, Somalia, South Sudan, Sudan, Syria, Yemen and Zimbabwe.

• Size of coverage: The export contract must have a value of at least GBP 5 million or the equivalent in foreign currency.

  The maximum amount of a guaranteed loan is 85 per cent of the contract value. At least 15 per cent of the contract value must be paid by the foreign buyer to the British exporter before the loans starts to be repaid, while at least 5 per cent of the 15 per cent must be paid upon contract signature.

• Currencies: The guarantees are offered for a wide range of currencies: https://www.gov.uk/guidance/local-currency-financing
  UKEF´s buyer credit facility can also be offered in main trading currencies: https://www.gov.uk/guidance/buyer-credit-facility

https://www.gov.uk/guidance/buyer-credit-facility