By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-United Kingdom Export Finance (UKEF), has named Ecobank Nigeria, JPMorgan Chase and 18 other global lenders as its partnering financial institutions to help deliver £3 billion Direct Lending Facility (DLF) support to UK exporters, Ecobank said in a statement on Friday.
UKEF is an arm of the UK Government that works as an export credit agency, and would under the DLF, UKEF provide loans to overseas buyers in order to finance the purchase of goods and services from UK exporters.
It said loans are available to cover new international sales by any business exporting from the UK, to any country where UKEF medium term cover is available, and can be made in Sterling, US Dollars, Euro or Japanese Yen.
The statement quoted David Godfrey, chief executive officer at UKEF, as saying “This is a key milestone in the delivery of the £3 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.
Godfrey said the reach will increase UKEF’s capacity to lend to overseas buyers of UK products and services and will also provide a springboard to help the export credit agency cater for the needs of a broad range of companies, in a variety of sectors, requiring loans of different sizes.
On his part, Jibril Aku, managing director, Ecobank Nigeria, described the appointment as a great feat, adding that it was an eloquent testimony of the bank’s strides in international trade.
“This international recognition is a great feat. It is a great privilege to have been selected alongside other global brands. This will help to enlist more local companies importing British goods,” he said.
On the appointment of 16 British Bankers Association (BBA) members to the 20 strong DLF panel, Irene Graham, executive director, BBA said international trade plays a vital role in supporting the UK’s economy and the DLF means that export finance will be cheaper and easier for businesses to access.
‘’The banking industry has worked with UKEF to revise the facility and it’s very pleasing to see the range of BBA members that will partner the department. This is invaluable support for businesses selling overseas,” Graham affirmed.
UKEF 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.
In exchange for working with UKEF to provide loans under the DLF, partnering institutions can negotiate fees from borrowers in the normal way and will have the opportunity to develop new business.
In the last five years, UKEF has provided over 1,500 guarantees and insurance policies with an exposure value in excess of £14 billion.
Some of the other selected 20 financial institutions include Citibank, Bank of China, Barclays Bank Group, Deutsche Bank; The Royal Bank of Scotland Group; and Lloyds Banking Group, among others. Ecobank is the only selected Nigerian financial institution.
