Early Project Services Guarantee

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,design, engineering or engineering or technical services from a UK supplier for early project work such as feasibility studies, conceptual designs, and surveys.surveys. 

How it worksworks 

StepStage 1: 1: An overseas buyer is considering starting a major projectproject.

StepStage 2: 2: A UK professional services firm wins a contract for the project’s early design work. This could include:include: 

• feasibility

  Feasibility and value for money studiesstudies 

• conceptual

  Conceptual designdesign 

• detailed

  Detailed designdesign 

• geophysical

  Geophysical surveyssurveys 

• habitat

  Habitat surveyssurveys 

• environmental

  Environmental surveyssurveys 

• human

  Human impact studiesstudies 

StepStage 3: 3:The loan Theis overseasdrawn buyerdown successfullyto appliespay the exporter for andthe obtainsservices as anthey EPSGare supplied. 

Stage 4: All the services are provided. The buyer now has two years to financerepay the earlyloan. Subject projectto services

Stepapproval from 4:UKEF Theand overseasthe lender, the buyer decidesmay tobe proceedallowed withto repay the projectprincipal, andin successfullywhole, at appliesthe forend andof obtainsthe atwo-year Buyerperiod. 

If Credit.the Theproject proceeds, and the buyer uses a UKEF Buyer Credit paysfacility to finance it and pay off the EPSG andearly, financesthe buyer will receive a pro rata premium refund on the project.EPSG premium reflecting the early repayment.  

BenefitsBenefits 

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.borrower. 

The buyer or borrower:borrower: 

• hasHas up to two years toto repay the payloan, forwith that period starting after the services andhave canbeen delivered 
• Can borrow at fixed or floating ratesrates 
• canCan make a single repaymentrepayment of onprincipal on the last day of the loan if this is allowed by the lenderlender and UKEF 
• canCan receive a partial premium refund if a a UKEF-backed Buyer Credit is is used to finance both the final project andand to anpay earlyoff the refinance the EPSGEPSG early  
• canCan receive a non-bindingnon-binding indication of indication of support for the final projectproject 

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

Eligibility criteriacriteria 

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

• the

  The supplier must be carrying on business in the UKUK 

• the

  The financial institution must be acceptable to usus 

• Once the loanservices repaymentare perioddelivered, the cannotloan must be longerrepaid thanwithin 2 2 yearsyears  

•  we

  We anticipate contract anticipate contract values of up to £30 million. However, in some cases, we may be able to support values above £30 millionmillion 

• the

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

All transactions supported by UKEF must satisfy: satisfy:  

• our 

  Our  foreign content policy  

• our 

  Our  anti-bribery and corruption and environmental, social and human rights due diligence processes  

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

TheThe maximum amount maximum amount 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. used.  

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

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

CostCost 

The premium payable for our cover isis determined on determined on a case-by-case basis.basis. 

How to applyapply 

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

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

Contact customer.service@ukexportfinance.gov.uk or call +44 (0)20 7271 8010.8010. 

Application form and product documentation documentation  

Check our  Check our  country cover position, and make an application. application.  

• Early Project Services Guarantee Application Form (PDF, (PDF, 574 574KB, 38 KB, 38 pages)pages) 

• EPSG Guarantee Letter Specimen (PDF, (PDF, 506 506KB, 45 KB, 45 pages)pages) 

• EPSG Guarantee Standard Terms and Conditions Specimen (PDF, (PDF, 570 570KB, 61 KB, 61 pages)pages) 

More information information  

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

• Read our position on Financial Crime Compliance . .