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The Early Project Services Guarantee (EPSG) provides a guarantee to a bank making a loan to an overseas buyer to finance the purchase of design,ÌýengineeringÌýor technical services from a UK supplier for early project work such as feasibility studies, conceptual designs, and surveys.Ìý

How it worksÌý

StageÌý1: An overseas buyer is considering starting a major project.

StageÌý2: A UK professional services firm wins a contract for the project’s early design work. This could include:Ìý

• Feasibility and value for money studiesÌý

• Conceptual designÌý

• Detailed designÌý

• Geophysical surveysÌý

• Habitat surveysÌý

• Environmental surveysÌý

• Human impact studiesÌý

StageÌý3: TheÌýloan is drawn down to pay the exporter for the servicesÌýas they are supplied.Ìý

StageÌý4:ÌýAllÌýtheÌýservices are provided. The buyer now has two years to repay the loan.ÌýSubject to approvalÌýfrom UKEF and the lender, the buyer may be allowed toÌýrepay the principal, in whole,Ìýat the end of the two-year period.Ìý

If the project proceeds,ÌýandÌýthe buyer usesÌýaÌýUKEF Buyer Credit facilityÌýto finance it and pay off the EPSG early, the buyer will receive a pro rata premium refund on the EPSG premiumÌýreflecting the early repayment.ÌýÌý

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The exporting professional services firm is paid as soon as the services have been performed, subject to the terms and conditions of the loan agreement and that loan continuing to be made available to the borrower.Ìý

The buyer or borrower:Ìý

• Has up to two years toÌýrepayÌýthe loan, with that period starting after the services have been deliveredÌý
• Can borrow at fixed or floating ratesÌý
• Can make a single repaymentÌýof principalÌýon the last day of the loan if this is allowed by the lenderÌýand UKEFÌý
• Can receive a partial premium refund if aÌýUKEF-backed Buyer CreditÌýis used to finance both the final project andÌýto pay offÌýthe EPSGÌýearlyÌýÌý
• Can receive a non-bindingÌýindicationÌýof support for the final projectÌý

The financial institution receives a guarantee from us for the amounts due under the loan.Ìý

Eligibility criteriaÌý

The transaction must satisfy UKEF’s eligibility criteria, which includes the requirements that: Ìý

• The supplier must be carrying on business in the UKÌý

• The financial institution must be acceptable to usÌý

• Once the services are delivered,Ìýthe loanÌýmust be repaid withinÌý2 yearsÌýÌý

• WeÌýanticipateÌýcontract values of up to £30 million. However, in some cases, we may be able to support values above £30 millionÌý

• The financing must relate to project services and cannot involve any physical project work.Ìý

All transactions supported by UKEF must satisfy: Ìý

• °¿³Ü°ù â¶Ä¯foreign content policyÌý

• °¿³Ü°ù â¶Ä¯anti-bribery and corruption a²Ô»å environmental, social and human rights due diligence processesÌý

The transaction may not be supported if there are sanctions imposed on the country of the buyer or borrower. Ìý

TheÌýmaximumÌýamount that can be made available under the facility is 85% of the contract value. A minimum of 15% of the contract value must be paid directly to the exporter by the buyer before the facility starts to be used. Ìý

Any offer of Buyer Credit finance for theÌýsubsequentÌýproject work is dependent on the overseas buyer meeting UKEF’s standard credit risk and due diligence and the proposed project being acceptable to UKEF. An offer of finance for the EPSG does not mean that finance for theÌýsubsequentÌýproject is guaranteed.Ìý

CheckÌýourÌý country cover indicators to find out what cover is available for the country or territory you want to do business in.Ìý

CostÌý

The premium payable for our cover isÌýdeterminedÌýon a case-by-case basis.Ìý

How to applyÌý

UKEF works with a range of financial institutions to deliver this support.Ìý

To find out more about a UKEF Early Project Services Guarantee or to discuss eligibility for our support, contact our customer services team. Ìý

°ä´Ç²Ô³Ù²¹³¦³Ù customer.service@ukexportfinance.gov.uk or call +44 (0)20 7271 8010.Ìý

Application form and product documentation Ìý

CheckÌýourÌý country cover position, and make an application. Ìý

•  (PDF, 574 KB, 38 pages)Ìý

•  (PDF, 506 KB, 45 pages)Ìý

•  (PDF, 570 KB, 61 pages)Ìý

More information Ìý

• Read our guide for applicants on business processes and factors, to find out how we make decisions on applicationsÌý

• Read our position on Financial Crime Compliance .