UK Export Finance. Jo Archer Export Finance Manager

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2 UK Export Finance WIN, FULFIL AND GET PAID FOR EXPORT CONTRACTS Jo Archer Export Finance Manager 2 Presentation title - edit in the Master slide

3 About UK Export Finance We: Are the UK s export credit agency (ECA) Were established in 1919 as the Export Credits Guarantee Department the world s first ECA Support the export of goods, services and intangibles Provide award-winning support for UK exporters: We received the TXF News Exporters Choice Award in 2015 and 2016 Providing on the ground support through network of EFMs Complement rather than compete with the private sector 3

4 Our Mission UKEF s mission is to ensure that no viable UK export fails for lack of finance or insurance from the private sector We help UK exporters: Win export contracts by providing attractive financing terms Fulfil orders by supporting working capital loans Get paid by insuring against buyer default We work with colleagues in DIT, HMT and other departments in the UK and overseas to support HM Government s export aspirations 4

5 5 Key Statistics

6 How Does UKEF Support Exporters? UKEF s support falls into two broad categories Short Term Products and services that support the exporter Reducing or removing the risk of non payment from the overseas buyer through insurance products Helping to support the bonding requirements of the contract Assisting with working capital needs Mid/Long Term Products and services that support the overseas buyer Providing guarantees to banks on the loans they give to overseas buyers to purchase goods and services from UK based companies Providing lending directly Support in the Capital Markets 6

7 Helping UK Exporters Fulfil Contracts UKEF can help companies access the working capital they need to fulfil a contract, giving them the ability to take on more contracts and increase their turnover. We are now able support exporters of all sizes and sectors, including exporters of services We can offer: Export finance guidance Guarantees to UK companies banks who lend working capital for export orders We can also support contract bonds, freeing up working capital for exporters 7

8 Role Of Export Finance Managers Guidance to Exporters Export Finance Can provide advice or information alongside our own financial or insurance products Can help companies make the right choices and help them to make exports happen Act as local points of contact to introduce exporters and businesses with export potential to finance providers, credit insurers, insurance brokers, trade support bodies and sources of government support 8

9 UKEF Bond Support Scheme We provide government guarantees to participating banks who issue bonds on behalf of UK exporters Support extends to all bonds related to an export contract (e.g. performance, warranty, advance payment, bid bonds) Cover up to 80% of the bond value; no minimum or maximum contract values or duration Eligibility UK based exporter 20% Minimum UK content Benefits The bank is able to issue the bond Sharing the risk with your bank enables it to issue more bonds on your behalf or to issue a bond without requiring as much of your cash or collateral - 9 improves your working capital

10 Case study: Greenray Energy Solutions Greenray Energy Solutions provides servicing solutions to the oil and gas sector. When Greenray won a number of export contracts in the Middle East and Asia, UKEF provided HSBC with a 1.25m guarantee to issue the required bonds without restricting the funding available to Greenray. Without UKEF s support, we could not have fulfilled these contracts, and we would have had to turn away customers. Working with HSBC and UKEF meant that we were able to access the finance we needed to sell to new markets and increase our revenue. 10 Anita Paulie, Commercial Director at Greenray

11 Export Working Capital Scheme We provide government guarantees to participating banks providing trade finance loan facilities to UK exporters to fund export contracts Specific contract Covering up to 80% of the loan value Eligibility UK based exporter 20% Minimum UK content Benefits The principal benefit for the UK exporter is that it is able to obtain the necessary working capital finance from its lender to support an export transaction in circumstances where its lenders may not have had sufficient risk appetite for the full facility amount. 11

12 Case study: IMPS UK Based in Lincoln, IMPS specialises in engine servicing: they manufacture bespoke replacements for machines no longer in production highly attractive in countries with aging transport Won a 140,000 contract with Sri Lankan Railways to provide engine parts Due to the custom-made nature of its products, and the requirement to pay suppliers up-front, undertaking the contract required significant investment by the company. UKEF gave HSBC a guarantee, giving it the security it needed to offer IMPS an export working capital loan We re a small company, but expanding into new markets is an important part of our growth strategy. Winning the contract with Sri Lankan Railways was a huge boost to our business, and working with UKEF meant that we were able to realise this success. 12 Chris Woolley, Managing Director at IMPS (UK) Ltd

13 Making Sure Exporters Get Paid We can help exporters manage risks in challenging markets, ensuring that they get paid even where the private market is not able to offer insurance. We can offer: Insurance against non-payment If the buyer does not pay or the contract is cancelled, the exporter is covered under our policy 13

14 Jo Archer Export Finance Manager Tel: +44 (0) General enquiries: For further information please visit: