---
title: "UKEF Corporate Loss Given Default (LGD) Model for IFRS 9 - Expression of Interest (EOI)"
ocid: "ocds-b5fd17-26df2780-6457-4d4c-b0f1-a5167706f393"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-b5fd17-26df2780-6457-4d4c-b0f1-a5167706f393"
markdown_url: "https://d3tenders.com/contract/ocds-b5fd17-26df2780-6457-4d4c-b0f1-a5167706f393.md"
json_url: "https://d3tenders.com/contract/ocds-b5fd17-26df2780-6457-4d4c-b0f1-a5167706f393.json"
source: "Contracts Finder"
current_stage: "Planning"
buyer: "DEPARTMENT FOR INTERNATIONAL TRADE"
published: "2022-12-22"
---

# UKEF Corporate Loss Given Default (LGD) Model for IFRS 9 - Expression of Interest (EOI)

Buyer: DEPARTMENT FOR INTERNATIONAL TRADE  
Current stage: Planning  
OCID: ocds-b5fd17-26df2780-6457-4d4c-b0f1-a5167706f393

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## Summary

The Department for International Trade has initiated a procurement process titled "UKEF Corporate Loss Given Default (LGD) Model for IFRS 9 - Expression of Interest (EOI)" under the planning stage. This opportunity falls under the industry category of Research and development services and related consultancy services. The engagement end date for this procurement is set for 12th January 2023. The Department for International Trade in London, England, is the buying organisation seeking organisations to deliver an IFRS 9 compliant LGD model by 1st April 2023.

This tender offers opportunities for organisations capable of providing compliant LGD models under IFRS 9 by the specified operational date and integrating with UKEF's LGD modelling approach. Businesses with expertise in research and development services and consultancy would be well-suited to compete in this tender. Interested parties need to meet the eligibility criteria and submit their expressions of interest to commercialddat@trade.gov.uk before the deadline on 12th January 2023.

## Notice

UK Export Finance ("UKEF") is inviting expressions of interest from organisations that would be interested in delivering a loss given default ("LGD") model ("the Contract") in compliance with the International Financial Reporting Standards 9 ("IFRS 9") to the Contracting Authority. The LGD model will need to be operational from 1 April 2023. The Supplier will provide a model that allows UKEF to estimate LGDs for corporate obligors under different macroeconomic scenarios (the Supplier does not need to provide the macroeconomic forecasts that will underpin the scenarios - the scenarios will be procured separately) in order to make the measurement of Expected Credit Losses ("ECL"), compliant with the IFRS 9 standard. This is a new requirement. It is a key requirement for the procurement that the LGD model will be IFRS 9 compliant, so the supplier will be required to demonstrate that the LGD model is "tried and tested" (i.e. already in use by organisations who are IFRS 9 compliant and/or reviewed by auditors). UKEF uses an LGD methodology whereby estimates of Enterprise Values ("EV") are utilised in order to generate an estimate of a corporate obligor's LGD using a "liabilities waterfall" approach (under a base scenario). The IFRS 9 corporate LGD model is required to work within UKEF's current process and not require changes to UKEF's estimates of LGDs under the base scenario. Eligibility This process is open to any organisation that can meet our requirements, which are as follows: - The model is shown to be compliant with IFRS 9 (i.e. used by organisations that currently comply with IFRS 9 and/or tested by auditors). - The model can be delivered in a fully operational state by 1st April 2023. - The model integrates with existing UKEF LGD modelling approach, as outlined above. This Expression of Interest is not a commitment to buy and DIT reserves the right not to proceed with this procurement. For further information on the requirement, please see attached the document titled Requirements_DRAFT-UKEF_LGD_Model which is the draft high level requirements for this opportunity. Interested parties should email their expression of interest to commercialddat@trade.gov.uk by 17.00 hours Thursday 12th January 2023.

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Contracts Finder |
| Latest notice | https://www.contractsfinder.service.gov.uk/Notice/017af647-ff57-4de9-b847-f05e5e15d788 |
| Notice type | Market Engagement Notice |
| Procurement type | Standard |
| Procurement category | Not specified |
| Procurement method | Not Specified |
| Procurement method details | Not specified |
| Tender suitability | SME |
| Awardee scale | Not specified |
| All stages | Planning |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 22 Dec 2022 |
| Submission deadline | Not specified |
| Future notice date | 12 Jan 2023 |
| Award date | Not specified |
| Contract period | Not specified |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | Not specified |
| Lots value | Not specified |
| Awards value | Not specified |
| Contracts value | Not specified |

## Status

| Field | Value |
| --- | --- |
| Tender status | Planning |
| Lots status | Not specified |
| Awards status | Not specified |
| Contracts status | Not specified |

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | DEPARTMENT FOR INTERNATIONAL TRADE |
| Locality | LONDON |
| Post town | South West London |
| Postcode | SW1A 2DY |
| Country | England |
| ITL 1 | TLI London |
| ITL 2 | TLI3 Inner London - West |
| ITL 3 | TLI35 Westminster and City of London |
| Local authority | Westminster |
| Electoral ward | St James's |
| Westminster constituency | Cities of London and Westminster |
| Delivery location | Not specified |

## CPV Codes

### Divisions

- 73 - Research and development services and related consultancy services

### Codes

- 73000000 - Research and development services and related consultancy services

## Release History

- 22 Dec 2022 at 16:30 - Planning - Market Engagement Notice - https://www.contractsfinder.service.gov.uk/Notice/017af647-ff57-4de9-b847-f05e5e15d788
- 22 Dec 2022 at 14:24 - Planning - Market Engagement Notice - https://www.contractsfinder.service.gov.uk/Notice/a5dd94f1-cdf5-4504-9f6e-13ba8b808d0e

## Documents

- https://www.contractsfinder.service.gov.uk/Notice/017af647-ff57-4de9-b847-f05e5e15d788
  22nd December 2022 - Early engagement notice on Contracts Finder
- https://www.contractsfinder.service.gov.uk/Notice/a5dd94f1-cdf5-4504-9f6e-13ba8b808d0e
  22nd December 2022 - Early engagement notice on Contracts Finder
- https://www.contractsfinder.service.gov.uk/Notice/Attachment/22923cda-8efe-4e0b-8481-7457706a617d
  n/a

## Provenance

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