UK Export Finance (UKEF) guaranteed 80% of the new loan provided by HSBC and Commerzbank, under the government’s Export Development Guarantee (EDG) program designed to drive major investments into a wide range of UK exporters.
This support will enable Megger to expand its UK exporting capacity and invest £15 million to enhance a major factory in Dover, a big boost to high skill green jobs in the region. The loan will also enable Megger to invest further in smart grid technology, such as sensors and cable analytics, and provide additional working capital to help the company fulfil overseas export contracts.
Secretary of State for International Trade, Anne-Marie Trevelyan said: “The UK is leading the world backing firms like Megger that protect the planet and power home-grown energy. Megger is headquartered in the UK with over 130 years’ experience in the electric supply industry.
Investment through UK Export Finance will grow Megger's UK operations, helping to solidify the UK's energy security and creating high-skilled green jobs that pay well levelling up all areas of the country."
Backing investment in climate friendly technologies is a key part of the PM’s Ten Point Plan for a green industrial revolution and Megger’s export-led expansion comes at a critical time for the UK.
Megger is an essential part of the UK’s journey to net zero and future energy security. Its equipment, technology and expertise will ensure that the country’s national grid can cope with greater demand as fossil fuels are phased out. As the UK transitions to net-zero, the pressure on the grid will intensify and it will need to run more efficiently.
This support for Megger will help support the energy transition, as the additional working capital will enable them to invest further in smart grid technology, maintaining the grid as the UK moves away from fossil fuels.
Jeremy Simpson, Chief Financial Officer at Megger Group said: “UKEF, has recognised that Megger is a growing company based in the UK, that designs and makes high value-added products with strong global exports, and growth prospects in new markets. The UKEF EDG loan guarantee will help us to invest in more smart electricity technologies, to help grid operators with their aims to increase efficiency and save them and consumers money."
The UK was the first country in the world to legislate net zero in 2019 and UKEF is providing the finance to help internationally focused businesses to invest in clean energy. It has over £2 billion available of direct lending to finance clean growth projects and can offer more flexible financing terms to green exporters.
