{"id":48402,"date":"2014-10-06T16:17:00","date_gmt":"2014-10-06T16:17:00","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=661933dfafe89e3bc7daca2226c64db7"},"modified":"2014-10-06T16:17:00","modified_gmt":"2014-10-06T16:17:00","slug":"press-release-uk-export-finance-announces-first-direct-lending-facility-loan","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=48402","title":{"rendered":"Press release: UK Export Finance announces first Direct Lending Facility loan"},"content":{"rendered":"<div class=\"govspeak\">\n<p>UK Export Finance (<abbr title=\"UK Export Finance\">UKEF<\/abbr>), the UK\u2019s export credit agency, today announced the first contract to be supported by the <a href=\"https:\/\/www.gov.uk\/direct-lending-scheme\">Direct Lending Facility<\/a> (<abbr title=\"Direct Lending Facility\">DLF<\/abbr>). The enhanced <abbr title=\"Direct Lending Facility\">DLF<\/abbr> was announced by the Chancellor as part of the Budget in March and is designed to help overseas buyers purchase goods and services from UK exporters.<\/p>\n<p>A US$110 million buyer credit loan under the <abbr title=\"Direct Lending Facility\">DLF<\/abbr> 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 inaugural panel of partnering institutions that will help <abbr title=\"UK Export Finance\">UKEF<\/abbr> deliver the \u00a33 billion facility.<\/p>\n<p>Chancellor of the Exchequer, George Osborne said:<\/p>\n<blockquote>\n<p>Helping British companies access global markets is a key part of our long term economic plan. So today I\u2019m delighted to announce the first deal supported by UK Export Finance\u2019s Direct Lending Facility along with the twenty financial institutions that are going to help us deliver the loans.<\/p>\n<p class=\"last-child\">It is great to see successful companies like Carillion, winning contracts around the world. Today\u2019s deal, the first in a pipeline of many, will help us reverse the age old trend of not exporting enough.<\/p>\n<\/blockquote>\n<p><abbr title=\"UK Export Finance\">UKEF<\/abbr> has also announced the names of the 20 financial organisations appointed to its panel of partners to help deliver loans under the <abbr title=\"Direct Lending Facility\">DLF<\/abbr>. In August <abbr title=\"UK Export Finance\">UKEF<\/abbr>, which during the last five years has provided over 1,500 guarantees and insurance policies with an exposure value in excess of \u00a314 billion, invited suitably qualified banks and financial institutions to apply to partner it to administer <abbr title=\"Direct Lending Facility\">DLF<\/abbr> export credit loans, with a closing date for applications of 19 September. <\/p>\n<p>Applicants were asked to satisfy demanding criteria covering their competence, capabilities, and level of expertise and experience in performing the services that underpin the arrangement and administration of specialised export credit finance.<\/p>\n<p>Members of the inaugural <abbr title=\"Direct Lending Facility\">DLF<\/abbr> panel are:<\/p>\n<ul>\n<li>Australia and New Zealand Banking Group<\/li>\n<li>Banco Santander<\/li>\n<li>Bank of China<\/li>\n<li>Barclays Bank Group<\/li>\n<li>Cargill Inc\/Cargill Financial Services International<\/li>\n<li>Citibank NA<\/li>\n<li>Crown Agents Bank<\/li>\n<li>Deutsche Bank<\/li>\n<li>Ecobank Nigeria<\/li>\n<li>HSBC Bank Group<\/li>\n<li>Investec Bank<\/li>\n<li>JPMorgan Chase Bank Group<\/li>\n<li>Lloyds Banking Group<\/li>\n<li>Natixis<\/li>\n<li>NorthstarTrade Finance\/Sovereign Star Trade Finance<\/li>\n<li>Societe Generale<\/li>\n<li>Standard Chartered Bank<\/li>\n<li>T. Garanti Bankasi<\/li>\n<li>The Bank of Tokyo-Mitsubishi UFJ<\/li>\n<li>The Royal Bank of Scotland Group<\/li>\n<\/ul>\n<p>David Godfrey, Chief Executive of <abbr title=\"UK Export Finance\">UKEF<\/abbr>, said:<\/p>\n<blockquote>\n<p class=\"last-child\">This is a key milestone in the delivery of the \u00a33 billion Direct Lending Facility. Panel members cover a wide range of overseas markets, with complementary geographical strengths that will make it easier for UK companies to arrange competitive loans throughout a worldwide network. That reach will increase <abbr title=\"UK Export Finance\">UKEF<\/abbr>\u2019s capacity to lend to overseas buyers of UK products and services. It will also provide a springboard to help us cater for the needs of a broad range of companies, in a variety of sectors, requiring loans of different sizes.<\/p>\n<\/blockquote>\n<p>Commenting on the appointment of 16 British Bankers Association (<abbr title=\"British Bankers Association\">BBA<\/abbr>) members to the 20 strong <abbr title=\"Direct Lending Facility\">DLF<\/abbr> panel, Irene Graham, Executive Director of the <abbr title=\"British Bankers Association\">BBA<\/abbr> said:<\/p>\n<blockquote>\n<p class=\"last-child\">International trade plays a vital role in supporting our economy and the <abbr title=\"Direct Lending Facility\">DLF<\/abbr> means that export finance will be cheaper and easier for businesses to access. The banking industry has worked with <abbr title=\"UK Export Finance\">UKEF<\/abbr> to revise the facility and it\u2019s very pleasing to see the range of <abbr title=\"British Bankers Association\">BBA<\/abbr> members that will partner the department. This is invaluable support for businesses selling overseas.<\/p>\n<\/blockquote>\n<p><abbr title=\"UK Export Finance\">UKEF<\/abbr> supplements the financial support for exporters from the commercial sector and enables banks and other financial institutions to help more customers take advantage of international sales. Under the <abbr title=\"Direct Lending Facility\">DLF<\/abbr>, <abbr title=\"UK Export Finance\">UKEF<\/abbr> will provide loans to overseas buyers 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 <abbr title=\"UK Export Finance\">UKEF<\/abbr> medium term cover is available, and can be made in Sterling, US Dollars, Euro or Japanese Yen. <\/p>\n<p>In exchange for working with <abbr title=\"UK Export Finance\">UKEF<\/abbr> to provide loans under the <abbr title=\"Direct Lending Facility\">DLF<\/abbr>, partnering institutions can negotiate fees from borrowers in the normal way and will have the opportunity to develop new business. <\/p>\n<p>Simon Sayer, Head of Structured Trade and Export Finance, EMEA for Deutsche Bank commented:<\/p>\n<blockquote>\n<p class=\"last-child\">The competitive terms of the enhanced Direct Lending Facility, backed by expertise from <abbr title=\"UK Export Finance\">UKEF<\/abbr>, provides us with the opportunity to build on the strong know-how and financial support we already deliver to businesses trading in global markets.  We are delighted to be the first bank to partner <abbr title=\"UK Export Finance\">UKEF<\/abbr> under this exciting new scheme.<\/p>\n<\/blockquote>\n<p>Carillion Chief Executive, Richard Howson, which is the first UK exporter to be supported by a <abbr title=\"Direct Lending Facility\">DLF<\/abbr> loan to its client, Dubai World Trade Centre LLC, commented:<\/p>\n<blockquote>\n<p class=\"last-child\">This is a significant and very important contract for Carillion, which will help us to build on our success in the Middle East and make further progress with our strategic objective of growing our business in the region.  The Direct Lending Facility is a major new development that is providing us with the support we need to achieve our export goals.<\/p>\n<\/blockquote>\n<h3 id=\"notes-for-editors\">Notes for Editors<\/h3>\n<ol>\n<li>\n<a href=\"https:\/\/www.gov.uk\/government\/organisations\/uk-export-finance\">UK Export Finance<\/a> is the UK\u2019s export credit agency. It supports long term economic growth and competitiveness by complementing the private market with insurance for exporters, loan guarantees to banks, and support for and provision of loans to overseas buyers of UK goods and services.<\/li>\n<li>Sectors in which <abbr title=\"UK Export Finance\">UKEF<\/abbr> has supported exports include: aerospace, petrochemicals, construction, oil and gas, mining and metals, telecommunications, and transport.<\/li>\n<li>The enhanced <abbr title=\"Direct Lending Facility\">DLF<\/abbr> was announced by the Chancellor of the Exchequer in March 2014 and many transactions are under active consideration. These transactions range in value from \u00a35 million to over \u00a3500 million.<\/li>\n<li>Dubai World Trade Centre LLC is the largest events and conference provider and facility in the Middle East, North Africa and South Asia (<abbr title=\"Middle East, North Africa and South Asia\">MENASA<\/abbr>) region, attracting more than 2.2 million visitors and over 400 major events annually. The Carillion contract includes a hotel, an office block and associated infrastructure.<\/li>\n<li>The interest rate under the <abbr title=\"Direct Lending Facility\">DLF<\/abbr> will be charged at the lowest rate permitted in accordance with the <abbr title=\"Organisation for Economic Co-operation and Development\">OECD<\/abbr> Arrangement.<\/li>\n<li>\n<abbr title=\"UK Export Finance\">UKEF<\/abbr> has a regional network of <a href=\"https:\/\/www.gov.uk\/government\/publications\/uk-regional-export-finance-advisors\">Export Finance Advisers<\/a> supporting export businesses.<\/li>\n<li>Prior to the appointment of the <abbr title=\"Direct Lending Facility\">DLF<\/abbr> panel, direct lending was available directly through <abbr title=\"UK Export Finance\">UKEF<\/abbr>. The new arrangements are intended to make it easier for the buyers of UK exports to access the loans, extending the global reach of UK exporters.<\/li>\n<li>Deutsche Bank is a leading provider of export finance for the benefit of its clients around the world.  Under the <abbr title=\"Direct Lending Facility\">DLF<\/abbr>, Deutsche Bank is co-financing the loan in partnership with <abbr title=\"UK Export Finance\">UKEF<\/abbr>.<\/li>\n<\/ol>\n<div class=\"contact\" id=\"contact_1093\">\n<div class=\"content\">\n<h3>Media enquiries: Lynda Hardy Maskell, Media Relations Manager<\/h3>\n<div class=\"vcard contact-inner\">\n<div class=\"email-url-number\">\n<p class=\"email\">\n              <span class=\"type\">Email<\/span><br \/>\n              <a class=\"email\" href=\"mailto:Lynda.hardy-maskell@ukef.gsi.gov.uk\">Lynda.hardy-maskell@ukef.gsi.gov.uk<\/a>\n            <\/p>\n<p class=\"tel\">\n              <span class=\"type\">Telephone<\/span><br \/>\n              020 7271 8408 or out-of-hours: 020 7215 3505\n            <\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Inaugural panel announced of 20 partnering institutions to help deliver \u00a33 billion support to UK exporters.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/48402"}],"collection":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=48402"}],"version-history":[{"count":1,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/48402\/revisions"}],"predecessor-version":[{"id":48416,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/48402\/revisions\/48416"}],"wp:attachment":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48402"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48402"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48402"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}