New Standard Buyer Loan Guarantee (SBLG) helps overseas buyers access government financial support to boost demand for UK exports
UK Export Finance (UKEF) today launches a new guarantee scheme that will help importers of UK goods and services obtain the financing they need, unlocking trade and boosting exports.
The Standard Buyer Loan Guarantee (SBLG) allows UKEF to guarantee a loan of up to 85% of the contract value with a UK company - typically worth between £1 million to £30 million.
As part of an overhaul to make UKEF’s supplier credit support more accessible, this ensures UK businesses get paid upfront to fulfil an export contract while their overseas buyers can repay the loan from their lender over a longer period.
Coronavirus has hit global supply chains hard with overseas buyers struggling to access the capital they need to import goods and services, restricting trade. That’s why UKEF is working with a range of new lenders to issue loans backed by SBLG.
This means UKEF’s financial support can be accessed more easily, particularly to finance smaller contracts to benefit SMEs, which will help stimulate demand for UK trade and propel economic growth as the country builds back stronger from the pandemic.
Minister for Exports, Graham Stuart, said:
Northern Irish firm first to benefit
Northern Irish company, CDE Global, provide wet processing equipment for construction and recycling operations and is among the first to benefit from SBLG’s pilot programme.
CDE secured a multi-million-pound contract with a Tunisian customer to expand the production capabilities at a silica quarry in Oueslatia. In absence of a financial solution from the commercial market to support extended repayments in Tunisia, CDE contacted UKEF for support who offered a nine-year facility to finance the contract for their buyer. This significantly boosted CDE’s turnover and helped support jobs at the firm. You can find more details about the deal here.
The financing was arranged by AF Capital Partners, which is a new partner for UKEF as part of its initiative to support smaller deals.
CDE’s Chief Executive Officer, Marc Jennings, said:
Andrew Woolfson, Partner at AF Capital Partners, commented:
Background
About UK Export Finance
UK Export Finance is the UK’s export credit agency. It exists to ensure that no viable UK export lacks for finance or insurance from the private market, providing finance and insurance to help exporters win, fulfil and get paid for export contracts.