Developing Nations that have the Vision to Develop
“It is the knowledge of UKEF financing options; the technical know how of the construction and contract processes; the legalities surrounding export finance and the willingness to engage globally; whilst making a package to suit both the international market and the UKEF local requirements; that we pride ourselves on.”
Background
In the current economic climate the British Government, through its Export Credit Guarantees Department, is actively financing projects undertaken by British contractors on extremely competitive terms.
Working with our UK Contractor partners we can therefore offer concessional loans for projects using the UKEF Direct Lending Facility.
Every country is on cover with UKEF for up to a certain limit of monies. These limits are set by the UKEF and are very generous with flexible and easy to access, they are transparent and negotiated upfront, project by project. No hidden costs once negotiated as the project becomes a lump sum project with all risk transferred to the development partner.
Route Geographic Consultants Ltd has teamed up with Roughton International to access and facilitate these funds.
Terms of the Finance:-
As this is a Direct Lending Facility, the terms of this finance are clearly outlined and are as follows: –
- British Government loan for up to 85% of Contract Price (no middle bank);
- UKEF premiums added to the Loan amount;
- Grace period during a maximum 3 year construction phase;
- Interest may be capitalised during grace period depending on the project;
- Repayment term of 10 to 18 years commencing on commissioning of the Facilities;
- Fixed interest at Euro Commercial Interest Reference Rates;
- giving a possible excess of 33% NPV discounted value or better on the average project
OECD Official rates
CIRR rates, set by the Organisation for Economic Co-operation and Development, are the minimum interest rates applicable to official financing support for export credits. These rates are adjusted on the 15th of each month and become fixed on the date a Loan Agreement is signed.
Euro CIRR rates are unlikely to increase in the short to medium term and are equivalent to Triple-A Euro Govt Bonds (same rate as German Govt bonds).
Basic premise for any loan
- It is critical that the project fulfils three basic and primary criteria –
- The project is seen by the country as a Priority Project
- This project has the full, unequivocal support of the Ministry of Finance
- The project falls within the allocated budget
Please contact us should you wish more information to unlock your countries financial potential.
