
Direct Lending Facility
Provides a direct loan to an overseas buyer to support the purchase of goods, services or intangibles from the UK. Loans can be made for up to £200 million, for a period of two years or longer.
How it works
Under the Direct Lending Facility, UK Export Finance (UKEF) provides loans within an overall limit of £13 billion to overseas buyers, allowing them to finance the purchase of capital goods and/or services from UK exporters. Of that limit, £3 billion has been allocated to support the defence sector.
The loans we provide for each transaction can be made in up to 8 currencies, with a value limit of £200 million (although more flexibility may be offered in limited circumstances).
The funding provided is at a fixed rate of interest, based on the applicable Commercial Interest Reference Rate (CIRR) set by the OECD, or the cost of UK Government funds (National Loans Fund rates) if higher.
To qualify
The transaction must satisfy UKEF’s eligibility criteria, which includes the requirement that:
- the contract must demonstrate how it is conducive to supporting or developing exports from the UK
All transactions supported by UKEF must satisfy:
- our foreign content policy
- our anti-bribery and corruption and environmental, social and human rights due diligence processes
The transaction may not be supported if there are sanctions imposed on the country of the overseas buyer or borrower.
There is no fixed lower limit, although for loans below £5 million (or the foreign currency equivalent), we may offer alternative export finance options.
How to apply
Complete our contact form to discuss an application.