UK Export Finance has invited banks and financial partners to apply to help deliver £3bn worth of medium and long-term export credit loans.

To help arrange and administer the enhanced direct lending facility (DLF) export credit loans, UKEF is setting up a panel of suitably qualified partner banks and/or financial organisations.

Commenting on the announcement, David Godfrey, CEO of UKEF, said in a statement: “As the UK’s export credit agency, UKEF has a key role in providing an attractive financing platform for UK exporters. Our direct lending facility is one of the most competitive loan products from any ECA. It supplements the financial support for exporters from the commercial sector and enables banks to help more customers take advantage of international sales.”

Under the DLF, which has not disbursed any loans to date, UKEF will provide loans to overseas buyers in order to finance the purchase of goods and services from UK exporters. 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.

UKEF has identified that typical loan sizes “are likely to range from around £5mn to well over £50mn”. For loans of less than £5mn, UKEF may offer alternative export finance options. For those over £50mn, UKEF expects funding to be a combination of DLF and commercial financing such as a buyer credit/export refinancing facility.

The enhanced DLF was announced by chancellor George Osborne in March 2014.

From September 8, 2014, UKEF will start listing the successful applicants who it will work with.