Advise on all major UK government corporate finance matters, including financial interventions into corporate structures and corporate finance negotiations.
UKGI’s corporate finance team has worked closely with HMG’s Vaccine Task Force (the VTF) since its inception in April 2020. A small number of UKGI employees worked intensively with the VTF over the year to secure access to a portfolio of vaccines, and are
credited with a strong contribution to its success.
UKGI employees, working together with BEIS as one team, led the negotiations for all seven of the initial vaccines purchased by HMG to tackle COVID-19 and also helped to secure vaccine and fill/finish manufacturing capacity, build capability and secure additional doses of vaccines.
UKGI influence has extended to the current VTF Director General being recruited from its ranks. UKGI continues to be involved in this area in particular in relation to expanding the UK’s vaccine manufacturing capability.
Thomas Cook Group
In this project, UKGI supported CAA, DfT Policy, Finance and Corporate Finance Teams and third-party advisors for over seven months to achieve a collective HMG outcome.
The UKGI team engaged in early April 2019 to understand the situation regarding Thomas Cook Group and provide information to the DfT Policy Team so they could formulate their response. After identifying the need to ensure proper governance for the combined response between HMG Stakeholders, DfT and CAA focused on the repatriation of 150,000+ passengers while UKGI and DfT Corporate Finance assisted with options analysis and contingency planning for repatriation over the peak holiday period and options to allow the business to trade until late September when passenger numbers began to tail off.
Attempts to “Keep the Fleet Flying” throughout the insolvency process were unworkable given the safety and operational challenges. In the days before insolvency, UKGI worked with the DfT finance team to fully cost and plan repatriation, liaising with advisers and Treasury.
Thomas Cook was placed into Compulsory Liquidation on 23 September 2019 with the Official Receiver who, working with CAA, leased up to 150 private sector aircraft and crew to repatriate UK passengers. The Head of CAA hailed the repatriation “a success” as the last 329 passengers returned from Orlando to Manchester on 24 October 2019.
UKGI’s central role in this project illustrates how we leverage our expertise in different scenarios to achieve the outcomes of our stakeholders.
Repayable Launch Investment
Commercial negotiations for aerospace contracts
UKGI takes a lead role for government in the commercial negotiations with industry for aerospace Repayable Launch Investment (RLI) contracts, to support the design and development of new aircraft programmes, such as the A350XWB aircraft with Airbus and GKN. This involves working with a wide range of officials from the Department for Business, Energy and Industrial Strategy (BEIS) and HM Treasury, as well as independent financial, technical and legal advisors. These are complex contracts to negotiate and construct – each being bespoke – and involve large sums of public funding. Securing agreement with applicant companies on RLI contracts involves intensive negotiations over key contract terms, including aspects such as target returns, levy rates, product definitions, security and contract duration.