UKEF backing helps UK pharma exporter unlock Saudi working capital

UK Export Finance has backed a Hertfordshire pharmaceutical exporter with insurance that helped unlock additional HSBC UK working capital for contracts in Saudi Arabia.

Masters Speciality Pharma secured two export contracts worth more than £2.3mn to supply specialist medicines to Saudi Arabia, including treatment for sickle cell disease and a specialised antibiotic.

The company needed insurance against non-payment and additional working capital to pay suppliers in advance. UKEF provided insurance cover, giving HSBC UK the confidence to raise credit thresholds and allow the company to fulfil the orders without disrupting its day-to-day operations.

The deal is small compared with large ECA-backed infrastructure transactions, but it is highly relevant for SME trade finance. It shows how export credit support can bridge the gap between winning an overseas contract and having enough liquidity to deliver it.

That gap is often where smaller exporters struggle. Larger orders can create cashflow pressure before payment is received, particularly when suppliers need to be paid upfront or production timelines are tight.

For banks, government-backed insurance can reduce non-payment risk and make it easier to increase facilities for viable exporters. For SMEs, it can turn a contract that would stretch working capital into one that is manageable.

The transaction also reinforces the Middle East’s importance as a growth market for UK exporters. UKEF said it aims to support UK firms to win more than £12.5bn of new export contracts by 2029.