UK Export Finance (UKEF), the UK government’s export credit agency, has announced a landmark expansion of its financial support with the introduction of a new £50 billion Defence Export Fund.

This addition increases UKEF’s total capacity to £130 billion, marking the largest expansion in its 100-year history. The fund is designed to support large-scale UK defence exports and enhance Britain’s competitiveness in a rapidly growing global defence market.

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.”

Supporting British defence companies across the spectrum

The £50 billion Defence Export Fund aims to bolster British defence companies of all sizes, from established exporters to those seeking to expand their international footprint. By providing financial backing, UKEF enables these companies to compete effectively for major contracts on the global stage.

The fund also benefits the UK’s allies by offering a powerful package that combines the country’s world-leading defence sector with competitive, government-backed financing.

Support will be delivered through UKEF’s guarantee of bank loans for British defence exporters fulfilling contracts, as well as direct financing to countries purchasing British defence products.

This approach ensures that exporters have access to the necessary capital and risk mitigation to secure and deliver complex defence deals.

Building on a strong track record in defence exports

UKEF has proven its ability to support high-value transactions in the defence sector. Recent export deals include air defence systems for Poland and Ukraine, as well as submarine rescue vehicles for Indonesia.

These contracts have created significant jobs and economic benefits in the UK, highlighting the sector’s strategic importance.

The scale of defence transactions handled by UKEF has grown substantially, with deals exceeding £5 billion becoming routine. In the financial year 2024/25 alone, UKEF supported a total of £10 billion in defence-related exports. This upward trend is expected to continue, and the new Defence Export Fund positions UKEF to meet this growing demand with enhanced confidence and ambition.

UKEF is expanding its capacity to support UK businesses and boost economic growth.

By 2029, it aims to help UK firms secure over £12.5 billion in new export contracts with its top-tier export finance services.