Published on October 2014 – Under the Direct Lending Facility, UKEF will provide loans to overseas importers in order to finance the purchase of goods and services from UK exporters.
Loans are available to cover new international sales by any business exporting from the UK, to any country where UKEF medium term cover is available.
Direct Lending Facility loans are available in Sterling, US Dollars, Euro or Japanese Yen.
Overview
Under the Direct Lending Facility UKEF provides loans up to £3 billion in aggregate to overseas buyers to finance the purchase of capital goods and/or services, from exporters carrying on business in the UK. Loans can be made in Sterling, US Dollars, Euro or Japanese Yen.
Upper or Lower Loan Value Limit
Although the Direct Lending Facility has no upper or lower loan value limit, UKEF advices to look for an alternative product that may be more appropriate for loans below £5 million.
Direct Lending Facility Partner Banks
- Australia and New Zealand Banking Group
- Banco Santander
- Bank of China
- Barclays Bank Group
- Cargill Inc/Cargill Financial Services International
- Citibank NA
- Crown Agents Bank
- Deutsche Bank
- Ecobank Nigeria
- HSBC Bank Group
- Investec Bank
- JPMorgan Chase Bank Group
- Lloyds Banking Group
- Natixis
- NorthstarTrade Finance/Sovereign Star Trade Finance
- Societe Generale
- Standard Chartered Bank
- T. Garanti Bankasi
- The Bank of Tokyo-Mitsubishi UFJ
- The Royal Bank of Scotland Group
Direct Lending Facility Example
A US$110 million buyer credit loan under the Direct Lending Facility has helped Carillion to secure a significant contract with Dubai World Trade Centre LLC in Dubai.
The loan has been arranged by Deutsche Bank who are also providing 50% of the lending.
Deutsche Bank is a member of the Direct Lending Facility partner banks that will help UKEF deliver the £3 billion facility.
