UKEF backs £150,000 Nighthawk Export Finance loan for HydroSurv exports

UK Export Finance has guaranteed a £150,000 trade loan provided by Nighthawk Export Finance to HydroSurv, an Exeter-based manufacturer of autonomous marine vessels, enabling the company to finance export orders in Norway and Italy.

The transaction provides working capital to support production before the overseas customers make their final payments. It also illustrates how government export guarantees can support comparatively small transactions that may be difficult for growing manufacturers to finance from existing resources.

HydroSurv designs and manufactures unmanned surface vessels used for marine surveys, environmental monitoring and offshore infrastructure work. Its electric and battery-hybrid boats can operate with lower emissions than conventional crewed vessels.

The company has deployed more than 30 vessels worldwide since receiving its first export order in 2021 and says international customers now account for approximately 95% of its business.

That exposure to overseas markets creates a particular working-capital requirement. Exporters may need to purchase components, pay employees and complete production months before receiving the full value of an international order.

A trade loan can bridge this cash-flow gap, while an export credit guarantee provides protection to the lender against specified risks. Under the newly announced arrangement, Nighthawk Export Finance is the lending institution and UK Export Finance provides the government guarantee.

The distinction matters because the government is supporting a private-sector loan rather than directly lending the entire amount itself.

HydroSurv said the financing will help it deliver orders to customers in Norway and Italy and support the recruitment of seven additional skilled employees at its Exeter facilities. That would increase its workforce from 12 to 19.

The company also expects to triple revenue within three years, although that remains a forecast rather than an achieved result.

For specialist trade-finance providers, the transaction shows how export working-capital facilities can be structured around identifiable orders and manufacturing costs rather than relying solely on a borrower’s existing balance-sheet liquidity.

The announcement does not disclose the guarantee coverage percentage, interest rate, repayment period, security package or detailed disbursement arrangements.

Although modest in value, the facility demonstrates the financing challenge faced by export-oriented manufacturers whose production commitments can grow faster than the cash generated by completed deliveries.