UKIB Credit Risk Analytics Solution

Description

The UK Infrastructure Bank ("UKIB") is a government-owned policy bank, focused on increasing infrastructure investment across the United Kingdom. UKIB is providing £22bn of infrastructure finance to tackle climate change and support regional and local economic growth across the UK.<br/><br/>UKIB has grown at pace, resourcing key functions to enable it to undertake both local authority and private sector lending. <br/><br/>Given UKIB's growing portfolio of assets and relationships, UKIB wishes to further strengthen its existing financial risk framework and due diligence processes by procuring specific tools to assess, measure and manage credit risk, counterparty and environmental, social and governance (ESG) financial risk. Lot 1: The key objectives for the services are the provision of: <br/><br/>- an analytical tool / scorecards to generate independent and market calibrated credit scores and expected recovery rates on infrastructure, project finance and corporate exposures and provide the underlying credit ratings mapping to probability of default; and <br/><br/>- long-term historical credit data relevant to infrastructure, project finance and corporate exposures to support detailed analysis of probability of default, loss given default / recovery rates and correlations across different sub sections (including geography, sub-sector). <br/><br/>The service will need to include embedded environmental, social and governance ("ESG") factors to support an holistic approach to risk. Ideally the service will provide the ability to take into account ESG data, scores and screening in credit rating and assessment. <br/><br/>The scorecards / database must cover project finance, infrastructure finance and corporate borrowers and the credit database must include data relating to UKIB's strategic sectors (water, energy, transport, digital and waste). <br/><br/>The contract shall commence in November 2023 and the credit rating / scorecard service products shall have a 3 year subscription period. The other service products for which a subscription is provided as part of the solution will be taken out on a 1 year basis with an option to extend for two further 1 year periods. Lot 1: The key objectives for the services are the provision of: <br/><br/>- an analytical tool / scorecards to generate independent and market calibrated credit scores and expected recovery rates on infrastructure, project finance and corporate exposures and provide the underlying credit ratings mapping to probability of default; and <br/><br/>- long-term historical credit data relevant to infrastructure, project finance and corporate exposures to support detailed analysis of probability of default, loss given default / recovery rates and correlations across different sub sections (including geography, sub-sector). <br/><br/>The service will need to include embedded environmental, social and governance ("ESG") factors to support an holistic approach to risk. Ideally the service will provide the ability to take into account ESG data, scores and screening in credit rating and assessment. <br/><br/>The scorecards / database must cover project finance, infrastructure finance and corporate borrowers and the credit database must include data relating to UKIB's strategic sectors (water, energy, transport, digital and waste). <br/><br/>The contract shall commence in November 2023 and the credit rating / scorecard service products shall have a 3 year subscription period. The other service products for which a subscription is provided as part of the solution will be taken out on a 1 year basis with an option to extend for two further 1 year periods.