General Electric (GE) has signed a memorandum of understanding (MoU) with UKEF, UK’s export credit agency (ECA), which will allow the US-based company to receive more than £7bn of export finance support.
According to the agreement, UKEF will pledge support for more than £7.7bn worth of projects under consideration, and an additional support facility of up to £500mn, subject to individual approval and due diligence. GE will also benefit from membership to the UKEF’s direct lending facility partnership panel, which arranges UK government loans to overseas buyers of UK exports. The company has committed ongoing support for its UK supply chain, promoting the UKEF’s exporter support schemes to its supply base.
The agreement comes a week after GE announced relocating 500 manufacturer jobs outside the US given the failure to access export support from American ECA US Exim, which has been unable to operate since Congress failed to renew its authorisation. The MoU is expected to lead to the creation of 1,000 GE jobs in the UK energy sector.
“Export finance is a critical tool we use to support our customers. In today’s competitive environment, countries that have a strong export credit agency (ECA) will attract investment,” says GE chairman and CEO Jeff Immelt.