7:42 am, July 24, 2020
Ford has secured a £500m loan guarantee from the government to help develop its electrified powertrains as well as support engine exports and increase the training level for its workforce in the UK.
The guarantee relates to a forthcoming £625m loan from commercial banks and has been awarded by the UK’s export credit agency UK Export Finance (UKEF), which is a ministerial department.
The lead arrangers and lenders for the loan were Barclays, Citibank (London branch), NatWest, Lloyds, and Sumitomo Mitsui Banking Corporation (London branch).
Ford of Britain chairman Graham Hoare said: ‘Ford’s manufacturing operations are a UK export success story with around 85 per cent of engines and 100 per cent of transmissions built by Ford exported to more than 15 countries on six continents.
‘The value of these exports, including machined engine components, is around £2.5 billion annually.
‘This financing will help to maintain Ford as a key UK exporter, and I would like to thank UKEF for its confidence, and Citi who acted as co-ordinator and facility agent for the £625 million loan facility.’
International trade secretary Liz Truss said during a visit to Ford’s Dagenham engine plant: ‘This deal firmly puts the UK at the heart of Ford’s plans to grow its export business, reduce emissions and support skilled manufacturing jobs.
‘A thriving automotive industry is vital to the success of the UK economy. It brings prosperity and security to manufacturers across the country. That’s why we are putting its needs at the heart of our strategy to remove barriers to trade when negotiating free trade deals.’
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