Question to the Ministry of Defence:

To ask the Secretary of State for Defence, pursuant to the Answer of 25 November 2022 to Question 89724 on Defence: Loans, what interest rate is being paid by Sheffield Forgemasters International Limited under the Working Capital Facility Agreement.

The Ministry of Defence (MOD) provides Sheffield Forgemasters International Limited (SFIL) with a revolving credit facility to provide liquidity for SFIL and its subsidiaries to meet its working capital needs. This working capital facility has been established since 19 August 2021, when SFIL became a public corporation wholly owned by MOD, and has an expiry date of 31 December 2024. It has a lending limit of £15 million and the rate of interest charged is equal to the Bank of England base rate plus 2.25%.