Trade finance specialist London Forfaiting Company (LFC) has joined the UK Export Finance (UKEF) bond support scheme, helping UK firms access government support for export-related bonds.
Under the scheme, UKEF – the UK’s export credit agency – provides a partial guarantee to a bank issuing a contract bond in support of UK exports, or indemnifying an overseas bank providing the bond. UKEF’s guarantee protects the bank against an exporter’s failure to reimburse it for a call on the bond. UKEF is able to guarantee up to 80% of the bond’s value.
LFC joins a group of 20 banks and financial institutions which act as partners to UKEF in delivering the bond support scheme.
UKEF chief executive David Godfrey said:
“I am delighted that this agreement with London Forfaiting will enable more exporters to access our support. UK Export Finance has an important role to play in backing British exporters, working alongside our private sector partners to help make exports happen.”