GE reached an agreement with UK Export Finance to access export financing for up to $12 billion.
The agreement will initially support both confirmed and potential orders in a number of international markets including Brazil, Ghana, India and Mozambique. GE said that such orders could create up to 1,000 new jobs in the UK’s energy sector. Since 2003, GE has invested over $21 billion in the UK.
“We are doing everything we can to make Britain the best place in Europe to start, finance or grow a business and GE’s substantial commitment through this agreement is fantastic news,” said UK Prime Minister David Cameron. “It will provide jobs and security for people working in the energy sector and elsewhere. It is a vote of confidence in our long term economic plan.”
In addition to providing export finance support, UKEF has agreed to add GE as a member of its direct lending facility partnership panel. UKEF is also offering GE a new ‘top-up’ support facility of up to $750 million, subject to individual project approval and due diligence.
“I warmly welcome this exciting series of partnership opportunities with GE. UKEF is proud to be viewed as one of the most responsive and innovative export credit agencies in the world, as this new GE framework demonstrates,” said David Godfrey, chief executive of UK Export Finance. “It is a good example of the many new opportunities for multinational companies operating out of the UK to work with us.”
Since the U.S. Export Import Bank (Ex-Im) authorization expired July 1, GE has commenced talks with several foreign ECAs to secure financing for its customers. Last week, GE announced an agreement with the French export credit agency (COFACE) to provide a line of credit for global power projects that could ultimately create 400 jobs at GE’s facility in Belfort, France.
“In today’s competitive environment, countries that have a functional Export Credit Agency (ECA) will attract investment. Export finance is a critical tool we use to support our customers. Without it, we can’t compete against foreign competitors who enjoy ECA financing from their governments,” said Jeff Immelt, chairman and CEO of GE. “We are fortunate to have the support of UK Export Finance (UKEF), one of the most flexible ECAs in the world. The UK is pro-export and pro-manufacturing.”
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