The is targeted at project sponsors in emerging markets who need long-term loans to finance investment-related capital goods and services for high value opportunities such as large-scale construction or infrastructure development projects.
It allows overseas buyers to access the highly competitive funding of the debt capital markets to refinance export finance loans after their initial funding by the banks.
The ERF will support UK bids for these projects which typically involve lengthy contract negotiations. It is the first time this financing approach is being used for civil project finance by an export credit agency.
The trade minister, Lord Livingston, said: “Increasing UK exports and giving UK exporters the support they need is key to our long-term economic plan to promote sustainable growth.
“The Export Refinancing Facility will help British firms succeed overseas by lowering the cost of finance for buyers who choose UK companies for their major projects.”
Richard Adam, Group Finance Director at construction company Carillion Plc, said: “In an increasingly competitive market, we are pleased to see UKEF launching this new innovative product that complements their current toolkit and enables us to offer it to potential overseas project sponsors in the future.”
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