Global Vantage – UKEF and international projects: getting the funding and contracts to work together

For UK contractors and consultants seeking access to international projects, securing an opportunity is only part of the overall picture. How a project is financed can be key. UK Export Finance (UKEF), the UK’s export credit agency, supports overseas buyers purchasing UK goods and services through financing and guarantee products. For contractors and consultants alike, this helps unlock international opportunities while potentially significantly derisking the payment and credit-risk profile of projects. However, UKEF-backed finance is not a bolt-on once initial commercial and funding terms are agreed. The financing arrangements and project contracts must be structured from the outset to work together.

How does UKEF support work?

Under UKEF’s Buyer Credit Facility structure, a commercial bank typically lends to an overseas buyer to finance eligible UK goods or services.[1] UKEF guarantees the lender against non-payment of amounts due under the guaranteed loan. The UK exporter (i.e. the contractor or consultant) is paid directly from the credit facility as amounts fall due under its export contract (i.e. the construction contract or consultant appointment).

Presently, the export contract must be worth at least £5 million and there are other eligibility criteria requirements. The loan can finance up to 85% of the contract value, with at least 15% to be paid directly to the exporter by the buyer. The loan repayment is over a minimum period of two years and loans can be made in major trading and over sixty local currencies. UKEF can support corporate, sovereign and public-sector buyers, including through project finance, Public-Private Partnerships and Islamic finance structures.

UKEF also has a Direct Lending Facility, under which UKEF provides a loan to an overseas buyer to fund purchases from the UK. The facility currently has an overall limit of £13 billion, with individual transactions generally limited to £200 million.[2]

For contractors and consultants, it is important to note that the financing structure can affect how and when they are paid and the commercial risks surrounding the project.

Early engagement matters

UKEF-supported transactions are subject to requirements including those relating to foreign content, anti-bribery and corruption, environmental, social and human rights due diligence and sanctions. UKEF support should therefore not be viewed as funding which can simply be retrofitted after project terms are agreed. The parties require clarity over who is contracting and need to consider right from the outset the identity of all stakeholders, the nature of the works or services being supplied, the location of all parties and goods, and how payments will flow.

Contractors and consultants considering UKEF-supported opportunities should engage with lenders, finance advisers or lawyers at an appropriately early stage. This may help identify where the financing structure and associated requirements impact the project contracts, so those contracts can be structured appropriately from the outset.

Getting contracts right

The project contracts must not be negotiated in isolation from the finance documents.

Clearly each case will need to be considered on a project-specific basis, but the following key areas deserve consideration:

1. Payments: When does payment become due and what needs to happen before an amount can be drawn under the financing? Under Buyer Credit, payments to the exporter are made directly from the credit facility as amounts become due under the export contract. Alignment between the contractual payment regime, legal requirements, and the financing mechanics is important.
2. Information and cooperation: Contractors, consultants and other project participants are often subject to ongoing requirements to provide information connected with the financing and compliance requirements. The contracts should contain appropriate information-sharing, cooperation and notification mechanisms.
3. Funding requirements: Parties should understand what must happen before finance is released and whether this is dependent on particular contractual obligations under the financing documents or the export contract. The consequences when those conditions are not satisfied should be clear.
4. Suspension and termination: What happens if the commercial or UKEF facilities cease to be available, drawdowns become suspended or other financing-related events occur? Rights relating to payment, suspension and termination should be considered and managed alongside the financing structure to provide protection.
5. Supply-chain arrangements: Requirements for information, compliance or key obligations must be considered across the contracting structure.

These issues matter for contractors and consultants since poorly drafted or aligned documentation can introduce uncertainty into payment and performance obligations. They may also be relevant when considering risk allocation, contractual dependencies and how funding might impact project delivery or prompt disputes.

Other opportunities

UKEF support is not confined to financing construction packages and includes support for working capital, contract bonds and export insurance. For example, the Early Project Services Guarantee, aimed at supporting overseas buyers procuring UK services for early-stage project work (including design and engineering services), may interest consultants.[3] It covers services such as feasibility studies, architectural planning, conceptual and detailed design, site surveys and environmental and social impact assessments.

Practical takeaways

UKEF support provides an important route for international opportunities. For contractors, key questions include payment security, compliance requirements and how relevant obligations flow through the supply chain. For consultants, there is an additional opportunity, alongside the need to understand how requirements interact with their design and advisory obligations.

The core lesson in our experience is that financing, contractual and project delivery documentation should be developed in parallel. Early engagement also helps identify potential issues before they become contractual or commercial problems.

If you wish to discuss the points covered above or require support on your UKEF projects, please contact Nadir Hasan, Partner in our Canada office.

[1] Buyer Credit Facility – GOV.UK, last updated 27 January 2026

[2] Direct Lending Facility – GOV.UK, last updated 25 July 2025

[3] Early Project Services Guarantee – GOV.UK, las updated 3 March 2026