Green's Power benefits from our new supply chain financing model
Yorkshire-based green energy firm is the first company to benefit from UKEF's expansion of eligibility to include the UK supply chain.
© Green's Power
| About the transaction: Green’s Power | |
|---|---|
| Region | Yorkshire |
| Sector | Energy: waste heat recovery systems |
| Export destination | Africa |
| UKEF support | Bond Support Scheme |
Green’s Power won a supply contract with a UK energy company, which then exported the supplied component as part of a wider package to Africa. The Wakefield-based firm is the first company to benefit from UKEF’s expansion of eligibility for government-backed loan and bond support to include the UK supply chain – support previously only open to UK exporters.
Green’s Power needed to provide a performance guarantee for the benefit of its buyer to secure these contracts. However, their bank required them to provide cash security prior to issuing a bond, restricting the available cashflow.
Thanks to the extension of our export finance offer, we provided a guarantee for 80% of the bond’s value to Green’s Power’s bank, HSBC. This meant HSBC provided the bond without additional security, allowing Green’s Power to retain working capital to deliver the contract and finance other orders from the UK and overseas.
Matthew Crewe, Managing Director, Green’s Power said:
Having worked with UKEF on several export contracts, UKEF has played a significant role in our international growth by giving us the financial resource to seize those overseas opportunities.
Now this new avenue for support means we have greater capacity to grow our business in the UK too, while supporting UK exports – this is really great news for the UK supply chain.
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