UKEF £7.4bn Support and New Missions Statement

UK Export Finance provided £7.4 billion in financial support for British exporters in 2021-22 in several sectors, but significantly with no support for overseas fossil fuel projects. In its annual results for 2021-22, UKEF also unveiled a new mission statement.

The financial input to UK exporters supported up to 72,000 UK jobs, UKEF claimed, adding £4.3 billion to the economy. It helped businesses export to 61 countries around the world. The £7.4bn was the highest amount for 14 years, bringing the total over the last five years to £33.4 bn. In one example, electric power manufacturer Megger got a £138 million UKEF loan guarantee, helping it build a new factory in Dover, boost exports and support 350 new jobs.

83% of the supported companies were located outside of London and a record 81% were small and medium-sized enterprises. The number of SMEs benefiting UKEF support increased by 25% year on year, with over 560 insurance and guarantee schemes issued. Many of these came under the General Export Facility, a product designed to give SME exporters more flexibility in accessing trade finance, which unlocked almost £250 million of working capital loans. UKEF also provided £27 million to support importers buying from UK SMEs using its Standard Buyer Loans Guarantee Scheme, ensuring UK companies get paid upfront while overseas buyers benefit from more flexible repayment terms.

£300 million was also awarded to 263 UK companies supplying to infrastructure projects that UKEF has financed across the globe. These include doors made in Birmingham sold to an airport in Ghana, fridges made in Norfolk sold to a hotel in Dubai and critical medical supplies shipped from South Wales to hospitals in Zambia.

UKEF's new mission statement puts sustainability at its heart. In its report, UKEF set ambitious new emission targets to reduce absolute emissions (tCO2e) of oil and gas sector exposure by 75% by 2030 and reduce economic emissions intensity (tCO2e/£AAR) of power sector exposure by 58% by 2030. It seeks to reach net-zero basis by 2050. £3.6 bn of UKEF support in 2021-22 went to the clean energy, healthcare and critical infrastructure sectors.

Since the start of the pandemic, UKEF's products have evolved and it has provided a total of £8.2 billion of support through its Temporary COVID-19 Risk Framework. A £500,000 UKEF-backed loan support helped Rochdale-based food distributors Forrest Fresh Foods overcome COVID-19 supply chain challenges.

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