UK Export Finance: Leading with Finance · 8 Our offer for buyers and sponsors Our long-term financing, in the form of direct loans and 100% unconditional guarantees, allows buyers

2 Presentation title - edit in the Master slide

UK Export Finance:

Leading with FinanceRichard Michael

Country Head - Indonesia

3

How can we help you trade with the UK?

► We are the UK’s export credit agency, and a Government department, with over 100 years’ experience in

helping buyers globally to purchase goods and services from the UK.

► The UK Government has an ambition that no viable trade with the UK should fail for lack of finance or

insurance. We work with colleagues across the UK government to realise this ambition.

► We can help you ensure that purchases of capital goods and services from the UK

are supported with attractive financing terms.

► We can support exports for any size of company and across all sectors, from capital goods to services and

intangibles such as intellectual property.

► We have a range of flexible support on offer and are actively looking for ways to help.

► In FY 2018/19, we provided £6.8 billion in support for trade with 181 countries.

4

Our range of support helps…

WIN CONTRACTS:

► We offer long-term financing to overseas buyers that makes UK companies’ offerings more

competitive, allowing buyers to spread their capital costs whilst exporters receive payment on delivery.

FULFIL CONTRACTS:

► We can help you and your supply chain access working capital to fulfil export contracts, or reduce

cash deposits required for contract bonds, enabling you to take more contracts and increase turnover.

GET PAID:

► We can help you and your supply chain manage risks in challenging markets with our

insurance products, where the private market is not able to offer insurance.

5

A growing role and growing reputation

The British Exporters’ Association gives us a 9/10 for our product range and rates us as the #1 European export credit agency.

Recently awarded Best ECA 2018 by Global Trade Review and Trade Finance.

We were named a Top Ten Deal of the Year by Trade Finance.


What we do and how we do it

Leading with finance to help UK exporters capture opportunities

8

Our offer for buyers and sponsors

► Our long-term financing, in the form of direct loans and 100% unconditional guarantees, allows

buyers to spread the cost of purchases of capital goods and services from the UK

► Repayment terms of 2-10 years (extending to 14 for project finance and 18 for renewables)

► Support for up to 85% of total contract value, provided there is a minimum of 20% UK content

► Financing in a range of 60+ currencies

► Flexibility to meet your requirements, including innovative products such as capital markets refinancing and

Islamic financing

► UKEF charges a premium for its support based on OECD rates and calculated on a case by

case basis, taking into account factors such as credit risk and loan tenor

► Premium is paid upfront, and can be funded from the loan to spread the cost

► Premium is a one-off charge, and is separate from the interest charged on the loan

9

Local Currency Financing

► UKEF is able to guarantee a buyer credit loan to an overseas borrower in a local currency, financing

the purchase of goods and / or services from a UK exporter.

► Guarantees can be issued for loans in over 60 different currencies.

► Local currency financing is particularly useful for projects which do not usually generate foreign

currency revenue. For the overseas borrower, it reduces foreign currency risk and avoids a variable

debt service cost.

Not shown:

Mauritian rupee

Trinidad and Tobago

Dollar

Key

LCF

available

LCF

available

on a case

by case

basis


UKEF in action

11

Sector spotlight: Infrastructure

UKEF is able to support major infrastructure projects, for example:

► Transport infrastructure:

► Airport terminals

► Rail – with repayment terms up to 14 years

► Roads

► Ports

► Urban:

► Buildings

► Stadiums

► Education – universities, equipment, expertise

► Healthcare – hospitals, equipment & expertise

► Smart cities technology

UK Export Finance supported Kier, a leading

UK construction company, in a contract to

design and develop the 17,000-seater Dubai

Arena. UKEF provided Meraas Holding, the

project sponsors, with US$220m in finance

through a mix of buyer credit and direct

lending

12

► UKEF provided a €270 million loan to

the Ugandan government for a new

international airport in Kabaale

► UKEF’s finance will help support work on

the construction of the runway, taxiway,

cargo terminal by the UK arm of

infrastructure firm Colas, based in

Sussex

► “Our ability to include government-

backed finance from UKEF is a real

asset to our international offer.”

Carl Fergusson, Executive Director,

Colas UK

Case study: Uganda airport

13

► GE Oil and Gas UK Limited is providing subsea equipment under a $850m contract to the Offshore Cape Three Points project (“OCTP”), a Ghanaian offshore oil and gas project.

► UKEF support was for Vitol as non-operator sponsor of the project – which showed our flexibility in accepting some limits to control in relation to the concession since a number of the key project contracts were entered into with ENI as operator.

► UKEF worked with the World Bank Group and commercial banks on this overall $1.35bn debt financing

Case study: Innovative finance in Ghana

Unique Financing Structure

Combines aspects of:

► Standard project finance

► Reserve based lending

$400m facility

► $90m UKEF covered Commercial Bank

► $310m UKEF Direct Lending

Awards

First O&G development finance

transaction with European ECA

14

Case study: aviation financing

► UKEF provided Korean Airlines with financing

to support the sale of eight Airbus A220 aircraft

► A-series wings and parts of the fuselage – a

significant proportion of the complete aircraft –

are made at Bombardier’s site in Belfast

► Emirates wanted to use Islamic finance to

fund its purchase of four new Airbus A380s

for its fleet

► UKEF developed a guarantee for a sharia-

compliant sukuk in the debt capital markets

► First ECA-guaranteed sukuk and at around

$1bn this was the largest ever debt capital

markets offering in the aviation space with an

ECA guarantee


Support in connecting with

the UK supply chain

16

UKEF supplier fairs

Overseas buyer and their

international projects

UKEF provides financial

support, and connects project

sponsors with UK suppliers

UK supply chain

Supplier fair hosted by UKEF

and one-to-one procurement

meetings

17

Matching overseas demand with UK supply

187 suppliers

235 delegates

114 1-1 meetings

140 suppliers

187 delegates

104 1-1 meetings

Nov 2016

Tahrir Petrochemical Plant

Egypt

137 suppliers

97 1-1 meetings

146 suppliers

156 delegates

88 on roundtables

57 suppliers

73 delegates

86 1-1 meetings

85 suppliers

106 delegates

159 1-1 meetings

85 suppliers

122 delegates

140 1-1 meetings

83 suppliers

93 attendees

85 1-1 meetings

Mar 2017

GE & ENKA

Turkey

Sep 2017

Bechtel

Several (inc. Kenya)

Nov 2017

DRPIC

Duqm Oman Refinery

Jan 2018

GE Healthcare

Africa and India

Jun 2018

Bapco Modernisation

Bahrain

Oct 2018

VAMED Healthcare

Africa

Jan 2019

EACOP

Uganda - Tanzania

Jul 2019

Bechtel

Ohio

89 suppliers

108 delegates

104 1-1 meetings

18

UKEF supplier fairs case study

The event placed UK

suppliers in front of the

procurement teams from

ENKA and GE

1 2 3

c$500m worth of potential

UK content identified

Opportunity EventRecruitment

51% of delegates

gained additional

business leads

104 meetings set up

with the procurement

teams

Companies

represented

4 out of 5 SMEs

187 British

suppliers in

attendance

General Electric and ENKA

seeking suppliers for the

construction of the Dhi Qar &

Samawa Combined Cycle Power

Plant in Iraq.

UKEF generate interest from 412

Oil and Gas companies, based on

the requirements of the two EPCs

GE/ENKA Exporter Fair –

The impact on the supplier and the buyer


Conclusion

20

Track record in supplying range of transaction structures

We can provide finance to both public and private sector buyers of UK exports

We can support Project or Structure Finance deals as well as Public Private

Partnership structures

UKEF can also structure a facility on a line of credit basis to enable multiple purchases

from different suppliers

In addition to standard bank financing, our repayment guarantees can also be

provided to non-bank financial institutions or cover bonds issued to refinance the loan

UKEF was the first ECA to provide guarantee support for a Sukuk issuance, allowing

the borrower to access the Islamic financing market alongside traditional investors

Corporate/

Sovereign

Loans

PF & PPP

Lines of

Credit

Debt Capital

Markets

Islamic

Finance

The ability to deliver on complex transactions and offer a variety of

financing options ensures UKEF is able to provide the most effective form

of support for projects


Thank you

[email protected]

Documents

UK Export Finance: Leading with Finance · 8 Our offer for buyers and sponsors Our long-term financing, in the form of direct loans and 100% unconditional guarantees, allows buyers