Tag: UK Export Finance

The press release issued by UK Export Finance on 9 June 2023.

UK Export Finance announces support for the world’s first hydrogen-powered bus company.

• Wrightbus receives £50 million to boost exports of electric and hydrogen-powered buses supported by a loan guarantee from the UK’s export credit agency.
• The company plans to double its workforce in the next three years, creating 1,000 new local green jobs.
• Government backing will enable Wrightbus to sell its electric and hydrogen-powered, zero-emission buses to new markets in Europe and North America.

A guarantee from UK Export Finance (UKEF) has provided Northern Ireland-based bus manufacturer Wrightbus with £50 million in financing to support its ambitious exporting strategy. This Export Development Guarantee sees the UK’s export credit agency guarantee 80 percent of the loan from Barclays Bank.

This financing builds on previous government support announced last year, helping deliver on the Prime Minister’s priority of keeping the economy growing. The development gives Wrightbus critical working capital support as well as a more flexible way to deploy the funds to support its business needs.

This will enable Wrightbus to deliver orders to new markets, such as Germany and North America, as well as additional orders in existing markets like Singapore and Hong Kong.

The announcement comes a week after Minister for Investment Lord Johnson visited Wrightbus’ site in Ballymena, County Antrim as part of a wider visit to Northern Ireland. There, he met investors and leading businesses ahead of the Northern Ireland Investment Summit taking place later in the year.

Minister for Investment Lord Johnson said:

Wrightbus is a fantastic example of a British business seizing the vast exporting opportunities around the world and embracing clean growth. UK Export Finance support for Wrightbus will be a great boost to its exporting journey, helping the company to create more local growth and jobs.

This is the type of success we will build on at this autumn’s Northern Ireland Investment Summit, which will be a catalyst for securing more investment, creating more jobs and empowering more businesses to seize exporting opportunities.

The company generated 27% of its revenues from exports in 2022 and seeks to grow this by nearly a fifth by the end of 2023 thanks in part to the UK government’s support. To facilitate this growth, Wrightbus plans to double its workforce by 2026, creating 1,000 new green jobs with most of the roles based at the company’s Ballymena hub.

The company’s hydrogen-powered, zero-carbon buses are in strong demand globally with over 600 buses of all types expected to be delivered by the end of 2023, up from 450 last year. Wrightbus now has the largest hydrogen fleet in the UK, with 100 buses in operation.

Jean-Marc Gales, Wrightbus CEO, said:

UKEF and Barclays’ support has been fundamental to the development of Wrightbus. The flexible products suit the needs of our business, which is growing exponentially and requires financial headroom.

We are excited about our next phase and working within the Ballymena and wider Northern Ireland community to deliver innovative British technology to the global market.

James Binns, Global Head of Trade and Working Capital, Barclays said:

Barclays are proud to work alongside UKEF to enable British companies to get the competitive edge when it comes to exporting.

This new funding builds on our previous support to Wrightbus, providing crucial flexibility which will enable further growth in exports and domestically, continuing the vital pivot towards zero-emission sales.

Based in County Antrim, Northern Ireland, Wrightbus introduced the world’s first hydrogen-powered double-decker bus in 2020, and also produces and exports electric-powered single and double-decker buses. The business is aiming to manufacture 3,000 zero-emissions buses by 2024, comprising 10% of the UK’s total fleet. Wrightbus last month received a further £12 million in joint government and industry-backed funding.

The press release issued by UK Export Finance on 29 March 2023.

UKEF, the British Business Bank, UK Research and Innovation, and the UK Infrastructure Bank welcome the launch of the Government’s 2023 Green Finance Strategy.

The press release issued by UK Export Finance on 15 December 2022.

UKEF’s guarantee has given a boost to exporting ambitions of a Stockport-based technology company.

• Vesper Technologies (Vespertec) will benefit from £900,000 UKEF support to an African cloud services company through its Standard Buyer Loan Guarantee
• Nairobi-located Atlancis Technologies has received UKEF support allowing it to purchase Vespertec’s IT hardware and software solutions, boosting the UK company’s exporting footprint
• The partnership between the two firms will contribute to the digitalisation of key industries across Africa

UK Export Finance (UKEF) has provided £900,000 of support to Atlancis, a Kenyan cloud services company, enabling it to forge a new relationship with UK exporter Vespertec to unlock growth opportunities in Africa.

A Standard Buyer Loan Guarantee was offered by UKEF to guarantee an export credit loan from Apple Bank, supported by its UK servicer and arranger of the deal AF Capital. Both AF Capital and Apple Bank specialise in export credit debt.

Launched in February 2021, the Standard Buyer Loan Guarantee allows UKEF to guarantee a loan of up to 85% of a contract value, ensuring UK exporters get paid upfront and their buyers benefit from flexible repayment terms. The deal was brokered through UKEF’s international export finance executive who supports deals across East Africa.

Based in Stockport, Cheshire, Vespertec is a leading provider of server, network, and storage solutions for the data centre and technology industries. With its in-house logistics capabilities, it deploys the full spectrum of IT hardware solutions around the world and, with a turnover in excess of £20 million, nearly half its business is driven by exports. With a number of deals in the pipeline, its partnership with Atlancis is expected to see Vespertec’s cloud hardware and software deployed across several sectors, including telecommunications, health and fintech.

UK businesses, like Vespertec, are helping to accelerate the digitalisation of industries, creating more opportunities and fuelling growth across African economies.

Samir Parkash, interim CEO of UK Export Finance, said:

UKEF’s support will help Vespertec strengthen its exporting business and expand into new markets. It shows the huge trading opportunities open to British businesses. You don’t need to be a big company to access UKEF support, in fact, 81% of the companies UKEF supported last year were small and medium-sized enterprises, the highest annual figure on record.

Vespertec is a great success story of a UK business exporting next-generation technologies around the world.

Steve Evans, Finance Director at Vespertec, said:

With UKEF’s support, we are tapping into a fantastic opportunity in Africa as part of our new partnership with Atlancis. We are excited for the future and the opportunity to increase sales in new geographies and sectors.

Philip Kaye, Director at Vespertec, added:

This deal is amongst a number of our recent successes that will create new roles in the business, strengthening our technical expertise and enabling Vespertec to meet the rise in demand for our products and services.

Dan Njuguna, founder and CEO of Atlancis, said:

We’re pleased to be partnering with Vespertec to support Kenya’s technology ambitions. Through the collaboration, our customers will benefit from cutting-edge IT solutions that delivers real benefits for their business.

Andrew Woolfson, Partner at AF Capital, adds:

The SBLG product has been a substantial success for UK exporters. AF Capital and Apple Bank remain a leading funder of these transactions and will continue to expand with this product. With Vespertec and Atlancis as our partners on this particular project, it is a shining example of how these transactions can expand opportunities for UK exporters.