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UK Export Finance supplied £8.8 billion in new financing final yr, serving to 650 UK corporations to export.
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As much as 41,000 jobs and £3.3 billion to nationwide GDP supported by UKEF’s provision of monetary assist for UK exporters.
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Detailed in UKEF’s new annual report for 2023 to 2024, assist for UK companies helps turbocharge the financial system and ship development alternatives throughout the nation.
Lots of of UK companies benefited from £8.8 billion in assist underwritten by UK Export Finance (UKEF) within the monetary yr 2023/24.
Because the UK authorities’s export credit score company, UKEF gives loans, ensures and insurance coverage to assist companies promote their merchandise around the globe.
UKEF’s assist within the final monetary yr enabled 650 UK corporations to win or ship export contracts final yr – a mean of just about two companies securing essential export financing each day of the yr.
It’s estimated that the UKEF-backed exercise of those companies and their suppliers contributes as much as £3.3 billion in the direction of UK GDP and helps as much as 41,000 FTE jobs.
Over half of the companies supported by UKEF have been small and medium-sized enterprises (SMEs), one thing enabled by the company’s work making its commerce finance merchandise extra accessible. Final yr, for instance, UKEF elevated the worth and tenor of financing which it might mechanically approve for lenders signed as much as choose assure schemes.
80% of these small companies which UKEF supported with a product have been primarily based exterior of London, demonstrating the division’s dedication to delivering development alternatives throughout the UK.
Two assure merchandise launched by UKEF lately have additionally continued to assist exporters safe financing which could in any other case be out of attain:
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The Export Improvement Assure helped corporations like SeAH Wind UK and UK-listed PLC Trifast to unlock massive mortgage amenities supporting funding and jobs. Thanks partly to UKEF assist, SeAH is now constructing one of many world’s largest factories to assist development of wind generators, while Trifast, a producer of business fastenings, will have the ability to construct a 75,000 sq. foot distribution centre within the Midlands.
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The Basic Export Facility (GEF) unlocked over £575 million in monetary assist for UK companies in 2023/24: a file for the product. Final yr, UKEF expanded the vary of lenders which might supply financing backed by a GEF assure.
UKEF’s worldwide impression was additionally supported by a dedication to sustainable financing. Final yr, UKEF turned the primary ECA to supply climate-resilient debt clauses, which assist small-island creating states and low-income international locations reply to local weather shocks by pausing sovereign debt repayments. In December 2023, UKEF additionally turned a founding member of the Internet Zero Export Credit score Alliance – a coalition of ECAs aiming to decarbonise export finance.
Tim Reid, CEO of UK Export Finance, stated:
UKEF has a vital function to play in serving to UK corporations bridge any financing gaps which could be a barrier to their exporting plans.
Our outcomes from 2023 to 2024 present that we’re stepping as much as this problem, with our highest degree of assist for UK companies for the reason that finish of the COVID pandemic and our largest ever quantity of financing assured by means of our GEF product – a cornerstone of our providing to small companies.
Successes like these are half and parcel of the federal government’s work to make sure a steady and rising financial system.
Whereas a lot of UKEF’s financing will not be particular to particular person export contracts, it did assist a excessive quantity of contract-specific enterprise with African patrons (£1.3 billion), adopted by the Center East (£419.5 million) and Indo-Pacific (£376 million), reflecting the sturdy commerce hyperlinks between these areas and the UK.
Marcus Dolman, Vice-President of the British Exporters Affiliation (BExA), stated:
Development in worldwide commerce is important in rising the UK financial system. UK exporters want a authorities targeted on commerce to assist them obtain this development. We’re delighted to see that UKEF continues to ship spectacular outcomes.
Their assist in offering monetary merchandise to exporters and their abroad prospects is essential to offering a low-risk setting for UK corporations to export in.
BExA is happy to see the continued sturdy assist for SMEs as entry to finance is commonly cited as a barrier to export. We and our members sit up for persevering with to work with UKEF to attain the goals of their marketing strategy and to nice tune and develop their product vary to drive UK export development.
Marco Forgione, Director Basic of the Chartered Institute for Export & Worldwide Commerce, stated:
UK companies have huge potential and are recognised around the globe for his or her high quality. That’s the reason the Chartered Institute of Export & Worldwide Commerce is devoted to empowering companies with the talents and data they want to make sure that they will commerce successfully, sustainably and competitively around the globe.
Making trusted worldwide commerce simpler and serving to extra UK companies increase their worldwide markets is central to getting development into the UK financial system. UKEF’s newest annual report is a welcome signal that supporting exporters of all sizes continues to be a precedence for the federal government.
In April, UKEF launched its new 2024-29 Enterprise Plan, which incorporates formidable targets for growing the scale, scope and impression of its assist by 2029. The division is aiming to assist over 1,000 small and medium enterprises a yr by the top of the last decade.
