[vc_row type=”vc_default” full_width=”stretch_row_content_no_spaces” css=”.vc_custom_1500547593342{padding-right: 100px !important;}” el_class=”noPaddinRow”][vc_column width=”1/6″ el_class=”noPaddingLeft” offset=”vc_hidden-md vc_hidden-sm vc_hidden-xs”][vc_raw_html]JTNDZGl2JTIwY2xhc3MlM0QlMjJtYWluLXN0cmlwJTIyJTNFJTBBJTNDZGl2JTIwY2xhc3MlM0QlMjJibHVlLXN0cmlwMCUyMiUzRSUzQyUyRmRpdiUzRSUwQSUzQ2RpdiUyMGNsYXNzJTNEJTIyYmx1ZS1zdHJpcDElMjIlM0UlM0MlMkZkaXYlM0UlMEElM0NkaXYlMjBjbGFzcyUzRCUyMmJsdWUtc3RyaXAyJTIyJTNFJTNDJTJGZGl2JTNFJTBBJTNDJTJGZGl2JTNF[/vc_raw_html][/vc_column][vc_column width=”5/6″ el_class=”justifyText” css=”.vc_custom_1530208362594{padding-right: 310px !important;}” offset=”vc_hidden-md vc_hidden-sm vc_hidden-xs”][vc_empty_space height=”50px”][vc_row_inner el_id=”newsletters”][vc_column_inner width=”1/6″][/vc_column_inner][vc_column_inner width=”2/3″][vc_custom_heading text=”DETAIL Hosts Presentation by UK Export Finance on Financing Support Available to Buyers of UK Goods” font_container=”tag:h1|font_size:22|text_align:justify|color:%236699cc|line_height:1.8″ use_theme_fonts=”yes”][/vc_column_inner][vc_column_inner width=”1/6″][/vc_column_inner][/vc_row_inner][vc_empty_space height=”25px”][vc_column_text]On Thursday, 15th October, 2015, Detail Commercial Solicitors (DETAIL), in collaboration with UK Trade and Investment, Nigeria, hosted a presentation by the UK’s export credit agency, UK Export Finance (UKEF). The presentation was delivered by UKEF’s Director of the International Business Development Division, David Ludlow and provided an overview of financial support UKEF offers to businesses that purchase UK goods and services.
Ayuli Jemide, Lead Partner of DETAIL welcomed attendees in his opening remarks and highlighted the importance of the forum for information gathering on financing options available to Nigerian businesses and for fostering trade relations between Nigeria and the UK.
Ludlow briefed attendees about the financial support UKEF can offer UK exporters and overseas buyers of UK exported goods, which include:
providing insurance products;
supporting bonding requirements of contracts;
assisting with working capital needs;
providing guarantees to local banks on the loans they give buyers to purchase goods and services from UK based companies;
providing lending directly; and
support in the capital markets.
Products for Overseas Buyers
For buyers of UK exported goods and services, UKEF specifically offers direct lending, 100% unconditional guarantees when borrowing from local banks, and support for capital market re-financings. The direct lending is available for up to 85% of the contract value, but only for contracts with a minimum value of £5million. Financing can be provided in a range of currencies, including GBP, USD, Euro, and Yen. The funding repayment terms can run from 2 – 10 years.
Premiums range on a case-by-case basis, which is typically dependent on the credit risk, length of contract performance and repayment terms. Nevertheless, the Organisation for Economic Co-operation and Development (OECD) sets the bench mark rates. Premiums are separate from interest rates.
For bank guarantees, a floating rate applies, while for direct lending facilities, a fixed rate, known as the Commercial Interest Reference Rate (CIRR) applies, which is based on the Government bond yields for the currency of the facility.
Products for UK Exporters
UKEF offers UK exporters a range of trade finance and insurance products, which include export insurance, bond support, bond insurance, export working capital and Letter of Credit guarantees. The insurance policies insure the exporter against the risk of non-payment or the risk of not being able to recover the costs of performing the contract due to specified events. The insurance covers up to 95% of the contract value, with no minimum contract value.
For its bond support schemes, UKEF is able to risk share with the bank and provide a guarantee on up to 80% of the value of the bond, minimising the need for the bank to take cash security. This allows the exporter to free up working capital and take up contracts which it would normally be unable to pursue due to financial constraints. A bond insurance policy can be taken out to protect against unfair calling of the bond and fair calling of the bond due to capricious/political events.
UKEF’s export working capital scheme is intended for circumstances where the exporter needs additional funds to facilitate the completion of export business. Under the scheme, UKEF risk shares with the lending bank on the loan facility being provided to fund the working capital required for an export contract. Up to 75% of the export contract can be financed with a maximum 80/20 level of risk share between UKEF and the bank. The bank would pay UKEF a portion of its interest margin.
Eligibility Criteria for UKEF Services
Ludlow emphasized that to be eligible for UKEF products, the contract must be between a UK operating company as the exporter and a buyer outside the UK. Shell companies are not eligible. The goods or services must have a minimum of 20% UK content, while the remaining 80% can be constituted from other overseas market. Projects with significant environmental impact must meet the OECD and World Bank environmental standards. The exporters’ anti-bribery and corruption declarations and representations are also required.
Ludlow also noted recent changes in UKEF’s legal powers, which allows UKEF to consider providing its services to overseas main contractors where a UK subcontractor is involved; and also to parallel overseas company to overseas company (local to local contracts) where support for these contracts would indirectly support UK suppliers to the same project.
Upon concluding the presentation, attendees had the opportunity to ask follow up questions many of which dealt with the eligibility criteria in order to better understand the types of business activities that would be eligible for UKEF’s products.
To wrap up the session, Dolapo Kukoyi, Partner, DETAIL, gave the vote of thanks, highlighting the relevance and usefulness of the information presented.
Ayuli Jemide
Lead Partner, Detail Commercial Solicitors
David Ludlow
Director, UKEF International Business Development Division
Left to Right: Ayuli Jemide (Lead Partner, DETAIL), Carly Grainger (UKEF), Dolapo Kukoyi (Partner, DETAIL), David Ludlow (Director, UKEF International Business Development Division)
Click here to view more pictures of the presentation…[/vc_column_text][/vc_column][/vc_row][vc_row type=”vc_default” full_width=”stretch_row_content_no_spaces” css=”.vc_custom_1500547593342{padding-right: 100px !important;}” el_class=”noPaddinRow”][vc_column el_class=”noPaddingLeft” offset=”vc_hidden-lg vc_hidden-xs”][vc_raw_html]JTNDZGl2JTIwY2xhc3MlM0QlMjJ0YWItbWFpbi1zdHJpcCUyMiUzRSUwQSUzQ2RpdiUyMGNsYXNzJTNEJTIydGFiLWJsdWUtc3RyaXAwJTIyJTNFJTNDJTJGZGl2JTNFJTBBJTNDZGl2JTIwY2xhc3MlM0QlMjJ0YWItYmx1ZS1zdHJpcDElMjIlM0UlM0MlMkZkaXYlM0UlMEElM0NkaXYlMjBjbGFzcyUzRCUyMnRhYi1ibHVlLXN0cmlwMiUyMiUzRSUzQyUyRmRpdiUzRSUwQSUzQyUyRmRpdiUzRQ==[/vc_raw_html][vc_empty_space height=”25px”][vc_row_inner][vc_column_inner width=”1/6″][/vc_column_inner][vc_column_inner width=”2/3″][vc_custom_heading text=”DETAIL Hosts Presentation by UK Export Finance on Financing Support Available to Buyers of UK Goods” font_container=”tag:h1|font_size:22|text_align:justify|color:%236699cc|line_height:1.8″ use_theme_fonts=”yes”][vc_column_text]On Thursday, 15th October, 2015, Detail Commercial Solicitors (DETAIL), in collaboration with UK Trade and Investment, Nigeria, hosted a presentation by the UK’s export credit agency, UK Export Finance (UKEF). The presentation was delivered by UKEF’s Director of the International Business Development Division, David Ludlow and provided an overview of financial support UKEF offers to businesses that purchase UK goods and services.
Ayuli Jemide, Lead Partner of DETAIL welcomed attendees in his opening remarks and highlighted the importance of the forum for information gathering on financing options available to Nigerian businesses and for fostering trade relations between Nigeria and the UK.
Ludlow briefed attendees about the financial support UKEF can offer UK exporters and overseas buyers of UK exported goods, which include:
providing insurance products;
supporting bonding requirements of contracts;
assisting with working capital needs;
providing guarantees to local banks on the loans they give buyers to purchase goods and services from UK based companies;
providing lending directly; and
support in the capital markets.
Products for Overseas Buyers
For buyers of UK exported goods and services, UKEF specifically offers direct lending, 100% unconditional guarantees when borrowing from local banks, and support for capital market re-financings. The direct lending is available for up to 85% of the contract value, but only for contracts with a minimum value of £5million. Financing can be provided in a range of currencies, including GBP, USD, Euro, and Yen. The funding repayment terms can run from 2 – 10 years.
Premiums range on a case-by-case basis, which is typically dependent on the credit risk, length of contract performance and repayment terms. Nevertheless, the Organisation for Economic Co-operation and Development (OECD) sets the bench mark rates. Premiums are separate from interest rates.
For bank guarantees, a floating rate applies, while for direct lending facilities, a fixed rate, known as the Commercial Interest Reference Rate (CIRR) applies, which is based on the Government bond yields for the currency of the facility.
Products for UK Exporters
UKEF offers UK exporters a range of trade finance and insurance products, which include export insurance, bond support, bond insurance, export working capital and Letter of Credit guarantees. The insurance policies insure the exporter against the risk of non-payment or the risk of not being able to recover the costs of performing the contract due to specified events. The insurance covers up to 95% of the contract value, with no minimum contract value.
For its bond support schemes, UKEF is able to risk share with the bank and provide a guarantee on up to 80% of the value of the bond, minimising the need for the bank to take cash security. This allows the exporter to free up working capital and take up contracts which it would normally be unable to pursue due to financial constraints. A bond insurance policy can be taken out to protect against unfair calling of the bond and fair calling of the bond due to capricious/political events.
UKEF’s export working capital scheme is intended for circumstances where the exporter needs additional funds to facilitate the completion of export business. Under the scheme, UKEF risk shares with the lending bank on the loan facility being provided to fund the working capital required for an export contract. Up to 75% of the export contract can be financed with a maximum 80/20 level of risk share between UKEF and the bank. The bank would pay UKEF a portion of its interest margin.
Eligibility Criteria for UKEF Services
Ludlow emphasized that to be eligible for UKEF products, the contract must be between a UK operating company as the exporter and a buyer outside the UK. Shell companies are not eligible. The goods or services must have a minimum of 20% UK content, while the remaining 80% can be constituted from other overseas market. Projects with significant environmental impact must meet the OECD and World Bank environmental standards. The exporters’ anti-bribery and corruption declarations and representations are also required.
Ludlow also noted recent changes in UKEF’s legal powers, which allows UKEF to consider providing its services to overseas main contractors where a UK subcontractor is involved; and also to parallel overseas company to overseas company (local to local contracts) where support for these contracts would indirectly support UK suppliers to the same project.
Upon concluding the presentation, attendees had the opportunity to ask follow up questions many of which dealt with the eligibility criteria in order to better understand the types of business activities that would be eligible for UKEF’s products.
To wrap up the session, Dolapo Kukoyi, Partner, DETAIL, gave the vote of thanks, highlighting the relevance and usefulness of the information presented.
Ayuli Jemide
Lead Partner, Detail Commercial Solicitors
David Ludlow
Director, UKEF International Business Development Division
Left to Right: Ayuli Jemide (Lead Partner, DETAIL), Carly Grainger (UKEF), Dolapo Kukoyi (Partner, DETAIL), David Ludlow (Director, UKEF International Business Development Division)
Click here to view more pictures of the presentation…[/vc_column_text][/vc_column_inner][vc_column_inner width=”1/6″][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row type=”vc_default” full_width=”stretch_row_content_no_spaces” css=”.vc_custom_1500547593342{padding-right: 100px !important;}” el_class=”noPaddinRow”][vc_column el_class=”noPaddingLeft” offset=”vc_hidden-lg vc_hidden-md vc_hidden-sm” css=”.vc_custom_1530209181394{padding-right: 75px !important;padding-left: 60px !important;}”][vc_raw_html]JTNDZGl2JTIwY2xhc3MlM0QlMjJtb2ItbWFpbi1zdHJpcCUyMiUzRSUwQSUzQ2RpdiUyMGNsYXNzJTNEJTIybW9iLWJsdWUtc3RyaXAwJTIyJTNFJTNDJTJGZGl2JTNFJTBBJTNDZGl2JTIwY2xhc3MlM0QlMjJtb2ItYmx1ZS1zdHJpcDElMjIlM0UlM0MlMkZkaXYlM0UlMEElM0NkaXYlMjBjbGFzcyUzRCUyMm1vYi1ibHVlLXN0cmlwMiUyMiUzRSUzQyUyRmRpdiUzRSUwQSUzQyUyRmRpdiUzRQ==[/vc_raw_html][vc_empty_space height=”25px”][vc_row_inner][vc_column_inner width=”1/6″][/vc_column_inner][vc_column_inner width=”2/3″][vc_custom_heading text=”DETAIL Hosts Presentation by UK Export Finance on Financing Support Available to Buyers of UK Goods” font_container=”tag:h1|font_size:22|text_align:justify|color:%236699cc|line_height:1.8″ use_theme_fonts=”yes”][vc_column_text]On Thursday, 15th October, 2015, Detail Commercial Solicitors (DETAIL), in collaboration with UK Trade and Investment, Nigeria, hosted a presentation by the UK’s export credit agency, UK Export Finance (UKEF). The presentation was delivered by UKEF’s Director of the International Business Development Division, David Ludlow and provided an overview of financial support UKEF offers to businesses that purchase UK goods and services.
Ayuli Jemide, Lead Partner of DETAIL welcomed attendees in his opening remarks and highlighted the importance of the forum for information gathering on financing options available to Nigerian businesses and for fostering trade relations between Nigeria and the UK.
Ludlow briefed attendees about the financial support UKEF can offer UK exporters and overseas buyers of UK exported goods, which include:
providing insurance products;
supporting bonding requirements of contracts;
assisting with working capital needs;
providing guarantees to local banks on the loans they give buyers to purchase goods and services from UK based companies;
providing lending directly; and
support in the capital markets.
Products for Overseas Buyers
For buyers of UK exported goods and services, UKEF specifically offers direct lending, 100% unconditional guarantees when borrowing from local banks, and support for capital market re-financings. The direct lending is available for up to 85% of the contract value, but only for contracts with a minimum value of £5million. Financing can be provided in a range of currencies, including GBP, USD, Euro, and Yen. The funding repayment terms can run from 2 – 10 years.
Premiums range on a case-by-case basis, which is typically dependent on the credit risk, length of contract performance and repayment terms. Nevertheless, the Organisation for Economic Co-operation and Development (OECD) sets the bench mark rates. Premiums are separate from interest rates.
For bank guarantees, a floating rate applies, while for direct lending facilities, a fixed rate, known as the Commercial Interest Reference Rate (CIRR) applies, which is based on the Government bond yields for the currency of the facility.
Products for UK Exporters
UKEF offers UK exporters a range of trade finance and insurance products, which include export insurance, bond support, bond insurance, export working capital and Letter of Credit guarantees. The insurance policies insure the exporter against the risk of non-payment or the risk of not being able to recover the costs of performing the contract due to specified events. The insurance covers up to 95% of the contract value, with no minimum contract value.
For its bond support schemes, UKEF is able to risk share with the bank and provide a guarantee on up to 80% of the value of the bond, minimising the need for the bank to take cash security. This allows the exporter to free up working capital and take up contracts which it would normally be unable to pursue due to financial constraints. A bond insurance policy can be taken out to protect against unfair calling of the bond and fair calling of the bond due to capricious/political events.
UKEF’s export working capital scheme is intended for circumstances where the exporter needs additional funds to facilitate the completion of export business. Under the scheme, UKEF risk shares with the lending bank on the loan facility being provided to fund the working capital required for an export contract. Up to 75% of the export contract can be financed with a maximum 80/20 level of risk share between UKEF and the bank. The bank would pay UKEF a portion of its interest margin.
Eligibility Criteria for UKEF Services
Ludlow emphasized that to be eligible for UKEF products, the contract must be between a UK operating company as the exporter and a buyer outside the UK. Shell companies are not eligible. The goods or services must have a minimum of 20% UK content, while the remaining 80% can be constituted from other overseas market. Projects with significant environmental impact must meet the OECD and World Bank environmental standards. The exporters’ anti-bribery and corruption declarations and representations are also required.
Ludlow also noted recent changes in UKEF’s legal powers, which allows UKEF to consider providing its services to overseas main contractors where a UK subcontractor is involved; and also to parallel overseas company to overseas company (local to local contracts) where support for these contracts would indirectly support UK suppliers to the same project.
Upon concluding the presentation, attendees had the opportunity to ask follow up questions many of which dealt with the eligibility criteria in order to better understand the types of business activities that would be eligible for UKEF’s products.
To wrap up the session, Dolapo Kukoyi, Partner, DETAIL, gave the vote of thanks, highlighting the relevance and usefulness of the information presented.
Ayuli Jemide
Lead Partner, Detail Commercial Solicitors
David Ludlow
Director, UKEF International Business Development Division
Left to Right: Ayuli Jemide (Lead Partner, DETAIL), Carly Grainger (UKEF), Dolapo Kukoyi (Partner, DETAIL), David Ludlow (Director, UKEF International Business Development Division)
Click here to view more pictures of the presentation…[/vc_column_text][/vc_column_inner][vc_column_inner width=”1/6″][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row]