£5bn boost for export finance
Inspiration
UK Export Finance’s (UKEF) direct lending facility has been more than doubled to £8bn, with £2bn allocated for clean growth projects.
The March 2020 package – the highest level of export lending the Government has ever made available – will provide support to industries and regions across the country.
UKEF is the UK’s export credit agency, working alongside the Department for International Trade. UKEF has supported exports in the aerospace, construction, oil and gas, mining and metals, petrochemicals, telecommunications and transport sectors. Through a direct lending scheme, UKEF provides overseas buyers of UK goods and services with financing support in the form of long term, fixed rate lending.
£2bn has been allocated to support clean growth projects as global economies shift away from fossil fuels to renewable and low carbon solutions. This measure will help finance such projects overseas and ensure UK exporters are well placed to supply to this fast-evolving area.
UKEF recently provided £230m of project finance guarantees for one of Asia’s largest offshore wind farms in Taiwan and a £47m facility for two solar plants in Spain, securing export opportunities for the UK renewable sector.
UKEF also unveiled £500,000 in local support for businesses based in Scotland and the North of England. Export finance will be used to support clean growth exports as companies transition away from fossil fuels.
Chancellor of the Exchequer, Rishi Sunak, said: “This decade will provide even more opportunities for British businesses to export and trade with new partners across the world. The Government will support businesses to seize these opportunities and thrive on the world stage.”
UKEF’s Chief Executive Officer Louis Taylor said: “Enhancing direct lending and other world leading support available from UK Export Finance will encourage overseas companies to source from the UK and help exporters across the country succeed abroad. This is a huge increase to our capacity to support UK exports.”
UKEF has also been allocated £1bn of direct lending capacity within its £8bn overall facility for defence and security projects and improved its buyer credit guarantee scheme to make the product more competitive for fixed rate financing.