UK Export Finance (UKEF), the government’s export credit agency, has announced a new £50 billion Defence Export Fund.
It will be used to support large-scale UK defence exports and increases UKEF’s total capacity to £130 billion. The allocation will support British defence companies of all sizes, whether they already export or are looking to expand internationally.
This support will come through UKEF guaranteeing bank loans for British defence exporters fulfilling contracts, or financing provided to other countries purchasing British defence products.
Defence transactions handled by UKEF have grown significantly, with £5 billion-plus deals now commonplace and a total of £10 billion supported in financial year 2024/25.
Tim Reid, CEO of UKEF, said:
“Security is a strategic priority for governments worldwide, and the UK’s defence sector offers pioneering capabilities that allies are actively seeking. With billions of pounds available in new export financing, we are strengthening the sector’s global competitiveness while backing skilled British jobs and supporting long‑term economic growth.”
By 2029, UKEF aims to support UK firms to win more than £12.5 billion of new export contracts.
