UKEF is the UK's export credit agency that was established in 1919. It supports UK exporters through financial products that complement private sector options. UKEF provides guarantees to banks lending to overseas buyers of UK goods and services, works directly with exporters on trade loans, and insures exporters against payment default. Its products help exporters win contracts, fulfill orders, and ensure payment.

2. 2 Presentation title - edit in the Master slide
UK Export Finance
ExploreExport 2017
Reducing Risk, Unlocking Opportunity:
Liz McCrory
Export Finance Manager, Northern Ireland

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► Operate at no net cost to the
taxpayer – we charge a
premium that covers the risk
plus a contribution to our
running costs
► Provide award-winning
support for UK exporters:
► We received the TXF News
Exporters’ Choice Award in
2015 and 2016
About UK Export Finance
We:
► Are the UK’s export credit
agency (ECA)
► Were established in 1919 as
the Export Credits Guarantee
Department – the world’s first
ECA
► Support the export of goods,
services and intangibles
► Complement rather than
compete with the private
sector

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UKEF’s mission is to ensure that no viable UK export fails for lack
of finance or insurance from the private sector
We help UK exporters:
• Win export contracts by providing attractive financing terms
• Fulfil orders by supporting working capital loans
• Get paid by insuring against buyer default
We work with colleagues in DIT, HMT and other departments in
the UK and overseas to support HM Government’s export
aspirations
Our Mission

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Key Statistics – 2015-16

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• UKEF’s support falls into two broad categories
How Does UKEF Support Exporters?
Mid/Long
Term
Products and
services that
support the
overseas
buyer
•Providing guarantees to banks on the loans they give to overseas
buyers to purchase goods and services from UK based
companies
•Providing lending directly
•Support in the Capital Markets
Short Term
Products and
services that
support the
exporter
•Reducing or removing the risk of non – payment from the
overseas buyer through insurance products
•Helping to support the bonding requirements of the contract
•Assisting with working capital needs

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Helping UK Exporters Win Contracts
Overseas
Mid/Long term products and services that support overseas buyer:
UKEF can give overseas buyers attractive long-term financing that makes
UK exporters’ offering more competitive.
We provide support through:
► 100% unconditional guarantees to banks lending to overseas buyers to
source from the UK
► Lending directly to overseas buyers
Our international business development team works closely with DIT and
Posts overseas to identify appropriate opportunities.

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Helping UK Exporters Fulfil Contracts
UKEF can help companies access the working capital they need to fulfil a
contract, giving them the ability to take on more contracts and increase
their turnover. We are now able support exporters of all sizes and sectors,
including exporters of services
We can offer:
► Export finance guidance
► Guarantees to UK companies’ banks who lend working capital for
export orders
► We can also support contract bonds, freeing up working capital for
exporters

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Role Of Export Finance Managers
Guidance to
Exporters
Can provide advice
or information
alongside our own
financial or
insurance products
Can help companies
make the right
choices and help
them to make
exports happen
Export Finance
Act as local points
of contact to
introduce exporters
and businesses with
export potential to
finance providers,
credit insurers,
insurance brokers,
trade support
bodies and sources
of government
support

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• We provide government guarantees to participating banks who issue bonds
on behalf of UK exporters
• Support extends to all bonds related to an export contract
(e.g. performance, warranty, advance payment, bid bonds)
• Cover up to 80% of the bond value; no minimum or maximum contract values
or duration
Eligibility
• UK based exporter
• 20% Minimum UK content
Benefits
• The bank is able to issue the bond
• Sharing the risk with your bank enables it to issue more bonds on your behalf
or to issue a bond without requiring as much of your cash or collateral -
improves your working capital
UKEF Bond Support Scheme

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► Greenray Energy Solutions provides
servicing solutions to the oil and gas
sector.
► When Greenray won a number of export
contracts in the Middle East and Asia,
UKEF provided HSBC with a £1.25m
guarantee to issue the required bonds
without restricting the funding available to
Greenray.
“Without UKEF’s support, we could not have
fulfilled these contracts, and we would have
had to turn away customers. Working with
HSBC and UKEF meant that we were able to
access the finance we needed to sell to new
markets and increase our revenue.”
Anita Paulie, Commercial Director at
Greenray
Case study: Greenray Energy Solutions

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• We provide government guarantees to participating banks providing trade
finance loan facilities to UK exporters to fund export contracts
• Specific contract
• Covering up to 80% of the loan value
Eligibility
• UK based exporter
• 20% Minimum UK content
Benefits
• The principal benefit for the UK exporter is that it is able to obtain the
necessary working capital finance from its lender to support an export
transaction in circumstances where its lenders may not have had sufficient
risk appetite for the full facility amount.
Export Working Capital Scheme

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Terminator Breaker Company: breaking new ground
With help from UK Export Finance, Terminator Breaker Company Ltd was
able to access finance to support two significant export contracts.
Ian Dawson, Managing Director at Terminator Breaker Company Ltd,
said:
“Our strategy has always been to chase dynamic markets with high
demand,” says Ian Dawson, Managing Director of Terminator Breaker
Company Ltd. “For us, overseas sales have always been a core part of
our business plan.”
Export Working Capital Scheme – Case
study
1
3

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Making Sure Exporters Get Paid
We can help exporters manage risks in challenging markets, ensuring
that they get paid even where the private market is not able to offer
insurance. We can offer:
► Insurance against non-payment
► If the buyer does not pay or the contract is cancelled, the exporter is
covered under our policy

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► CIGA Healthcare, based in Ballymena, is a
family run healthcare products firm making
rapid self-diagnostic kits for pregnancy,
cholesterol, diabetes, temperature and
heart monitoring.
► In 2014, CIGA won a US$47,000 new
contract in South Africa.
► UKEF provided export insurance,
providing CIGA with assurance of being
paid as it entered a new market.
“UKEF are there to help and for the South
Africa contract, they were there at the right
time in our contract negotiations, which was
critical for us.”
Neill Armstrong, director, CIGA Healthcare
Case Study: Export Insurance to South
Africa

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Trade Finance Risk Management
Understanding Exporters’ Risk

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If the contract with your trading partner is in a currency other than your
local currency, there is an exchange risk.
There are a number lf alternatives when dealing with this risk.
• Do not cover the risk
• Cover the risk by using a forward contract
• Open a Foreign currency ‘Hold’ Account
• Use a combination of the above
Exchange Risk - How to Deal With it:

18. Liz McCrory
Export Finance Manager, Northern Ireland
Tel: +44 (0)7435 32 32 31
Email: elizabeth.mccrory@ukexportfinance.gov.uk
General enquiries:
internationalenquiries:@ukexportfinance.gov.uk
For further information please visit:
www.gov.uk/uk-export-finance