UK Export Finance (UKEF), part of the UK Government, has earmarked £4 billion (₹40,000 crore) for lending to Indian companies that buy goods or services from the UK, Rahul Tabhane, UKEF Regional Head – South Asia, said. 

Speaking at the 2nd UK-India Offshore Wind Summit held in Chennai recently, Tabhane said that UKEF could also lend in Indian rupees

Later, in an emailed response to businessline’s queries, Tabhane said that UKEF would focus on “social, sustainable, and clean growth projects.” 

Also read: India, UK finance ministers agree to make further progress on FTA

UKEF does not provide equity but only debt, he said, adding that the debt is made available in any hard currency and Indian rupees. “Our debt repayment terms can be between 6 months and 18 years; we can work with government, public, or private institutions,” he said. 

The financier is willing to provide loans for equipment purchase, working capital, and trade—only the “UK content” has to be at least 20 per cent, and the minimum ticket size of ₹10 crore. 

Also read: Digital lenders disburse 1.8 crore loans worth Rs 18,537 crore in Q3FY23

He said that in 2021-22, UKEF provided loans of £7.4 billion to projects in over 70 countries. Apart from direct lending, UKEF would also guarantee loans. “100 per cent unconditional guarantee,” one of Tabhane’s slides in his presentation, says. 

“Some of our previous lending transactions were to Reliance Industries, Indigo Airlines, Jet Airways, and GAIL India Limited. We also support Indian businesses investing in the UK and overseas, and Indian contractors working on foreign infrastructure projects,” Tabhane said in his email to businessline

comment COMMENT NOW