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Exports

UK Export Finance Boosts British Exports with PS13 Billion Direct Lending Facility

Strategic Insights

— 1 min read

The UK government's export credit agency, UK Export Finance (UKEF), is set to provide up to PS13 billion in direct lending to support British exports across key industrial sectors. This significant increase is part of the government's growth measures, outlined in the Industrial Strategy, aimed at boosting economic growth and creating highly skilled jobs. The PS13 billion marks a PS3 billion uplift in UKEF's facility, with at least PS3 billion allocated for defence exports, highlighting the sector's growing importance to economic and national security.

Key Takeaways:

  • UKEF's Direct Lending Facility will provide up to PS13 billion to support British exports across eight Industrial Strategy sectors, including clean industries, life sciences, and advanced manufacturing.
  • The facility will have a PS3 billion uplift, with at least PS3 billion allocated for defence exports, demonstrating the sector's growing importance.
  • Recent direct lending deals include a PS18.8 million equivalent loan for an Angolan clean water project and a PS23 million equivalent loan to Iraq's Ministry of Interior.
  • Business Secretary Jonathan Reynolds emphasized UKEF's role in delivering the Industrial Strategy, supporting innovation, and driving sustainable economic growth.
  • Following the Autumn Statement, UKEF is launching a new loan guarantee scheme for UK-based suppliers of critical minerals and expanding its network of local export finance managers.
  • UK Export Finance CEO Tim Reid emphasized the department's comprehensive five-year business plan, aiming to reach businesses of all sizes across every region and nation of the UK.

Statistics:

  • UKEF's Direct Lending Facility will provide up to PS13 billion to support British exports.
  • The facility has a PS3 billion uplift, with at least PS3 billion allocated for defence exports.
  • Recent direct lending deals include:

+ PS18.8 million equivalent loan for an Angolan clean water project

+ PS23 million equivalent loan to Iraq's Ministry of Interior

  • UKEF provided over PS8.8 billion of support to 650 businesses in 2023/24, supporting up to 41,000 jobs and contributing up to PS3.3 billion to the overall economy.

Sources:

  • Business Money Promotions Ltd
  • UK Government
  • UK Export Finance CEO Tim Reid
  • Business Secretary Jonathan Reynolds

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