Carillon share price up as it becomes first UK company to be supported by Direct Lending Facility

Shares in Carillion went up by 0.6 per cent to £3.14 in trading this morning, after the construction giant became the first firm to be supported by UK Export Finance’s Direct Lending Facility (DLF).

 

Yesterday, the Wolverhampton-based company agreed to a major contract with Dubai World Trade Centre after securing government-backed loans worth £75m. 

 

Chancellor George Osborne announced the deal during his visit to Birmingham, confirming that Deutsche Bank have acted as partners in arranging a further loan of £34 million, guaranteed by UK Export Finance.

 

The contract involves the construction of a 146,000 square metre development in the heart of the Dubai's central business district that will include an eight storey office building and a large business and tourism hotel.

 

Carillion's chief executive, Richard Howson, said: "The new Direct Lending Facility is an exciting development, which will further enhance our ability to use Carillion's world-class skills to compete and win contracts in our international markets."     

 

It is the contract is the first of its kind to be supported by Export Finance's DLF –  a plan introduced by Osborne to boost exports from the UK by funding small and medium size transactions where loan funds cannot be obtained from commercial banks.

 

Under the facility, HM Treasury has made £3bn available to support export finance on a first come, first served, basis. Funds will be available to companies until the end of the financial year 2015-2016. 

 

"It is great to see successful companies like Carillion winning contracts around the world. This deal, the first in a pipeline of many will help us reverse the age old trend of not exporting enough, boosting growth and creating jobs,” chancellor George Osborne commented.