Permanent 拢5 billion boost to UKEF lending capacity
In the 2020 budget, UK Export Finance鈥檚 direct lending facility was significantly increased to 拢8 billion, with 拢2 billion allocated for clean growth projects.
Through its direct lending scheme, UK Export Finance (UKEF), provides overseas buyers of UK goods and services with financing support in the form of long-term, fixed-rate lending.
拢2 billion of direct lending 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 拢230 million of project finance guarantees for one of Asia鈥檚 largest offshore wind farms in Taiwan and a 拢47 million facility for two solar plants in Spain, securing export opportunities for the UK renewable sector.
UKEF also unveiled half a million pounds of 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.
UKEF鈥檚 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 拢1 billion of direct lending capacity within its 拢8 billion overall facility for defence and security projects and improved its buyer credit guarantee scheme to make the product more competitive for fixed-rate financing.
The one-off 拢2 billion direct lending increase announced in the 2018 autumn budget has now been made permanently available to make UKEF鈥檚 total permanent lending facility 拢8 billion.