As the Australian Government’s export credit agency, we help successful businesses to win, finance and protect export trade or overseas investments by working directly with exporters or with their banks to provide loans, guarantees, bonds and insurance products which can be tailored to meet the needs of both large and small exporters.
EFIC does not compete with the private market. A key part of our charter is to work with the commercial finance sector.
EFIC is uniquely placed to do this: we use over 50 years of export finance and industry expertise, contacts at financial institutions around the globe, the strength of our AAA credit rating and an entrepreneurial business approach to make export deals happen.
EFIC Headway working capital guarantee
EFIC Headway working capital guarantee is a guarantee from EFIC to the exporter’s participating bank. It provides security for the bank to lend the extra funds the exporter needs, without requiring additional security from the exporter.
EFIC Headway is an extension to the exporter’s facilities with their participating bank and supports general export funding rather than a specific export transaction or contract. This means the exporter can take immediate advantage of new export opportunities, increase export capacity or build infrastructure and product lines.
The banks who participate in EFIC Headway are Westpac, HSBC, ANZ, NAB, BankWest, Commonwealth Bank, Bank of Queensland, Bendigo Bank and St.George.
Reinsurance agreements
These agreements enable Australian companies in the respective countries to take part in international contracts and benefit from the streamlined financing packages and administrative efficiencies created under these agreements.
Under reinsurance agreements, the lead export credit agency (ECA) provides export credit cover for the entire transaction on its usual terms, while the other ECA, whose exporter is a sub-contractor, provides reinsurance for its portion of the transaction to the lead ECA. Buyers and borrowers need only negotiate one set of documents with the lead ECA.
Reinsurance agreements have been established with:
- Germany - Euler Hermes Kreditversicherungs AG,
- Sweden - Exportkreditnämnden (EKN),
- Belgium - Office National du Ducroire (ONDD)
- Japan - Nippon Export and Investment Insurance (NEXI)
- Korea - Korean Export Insurance Corporation (KEIC)
- Israel - The Israel Export Insurance Corporation Ltd
- Netherlands - Atradius NV
- France – Compagnie Française d'Assurance pour le Commerce Extérieur (COFACE)
- USA – Export-Import Bank of the United States (US Ex-Im Bank)
Berne Union
Established in 1934, the Berne Union (International Union of Credit & Investment Insurers) is the leading international association for the export credit and investment insurance industry. It works for cooperation and stability in cross-border trade by supporting the international acceptance of sound principles in export credits and foreign investments and by providing a forum for professional exchange among its members.
Berne Union members are both private companies, offering worldwide risk management solutions, and export credit agencies, like EFIC, focusing upon the support of national exports and outward investments.
The Berne Union has well established links with other organisations that play important roles in world trade including the WTO, World Bank, IMF, OECD and regional development banks.
EFIC’s Managing Director & CEO, Mr Angus Armour, served as a vice president of the Berne Union from 2006 to 2007 and in October 2009, he was appointed President of the Berne Union.
Asian Exim Banks Forum
EFIC is a member of the Asian EXIM Banks Forum an organisation formed in 1996 to enhance co-operation and forge stronger relationships between member export-import banks in promoting global trade and investment. Members include institutions from China, India, Indonesia, Japan, South Korea, Malaysia, Philippines, Thailand and Australia.
Liberty Mutual
Competing for business in the United States market can present particular challenges for Australian companies, especially SME exporters. In the US, a supplier is typically required to provide a surety bond, from a registered US security bond issuer, for up to 100% of the export contract value as security for their performance obligations. An Australian exporter may be unable to raise this level of security or may be unwilling to tie up their working capital.
EFIC’s US bonding line with Liberty Mutual Insurance Company (Liberty Mutual) enables an exporter to deal directly with EFIC. EFIC in turn works with Liberty Mutual to help the exporter meet their US bonding requirements.
EFIC’s security requirements are based on an individual assessment of an exporter’s ability to perform the export contract, and may be less than the amount of the bond. As a result, EFIC’s bonding line can enable Australian exporters to compete more effectively in the US market without tying up their working capital.
Liberty Mutual is a leading global surety bond provider and is also a qualified surety for US Government public works contracts. It can provide surety bonds for all US states, Puerto Rico and Guam.
Northstar
EFIC’s relationship with Canada-based NORTHSTAR Trade Finance Inc. (Northstar) aims to help Australian SMEs boost their exports by providing an alternate source of buyer finance. Northstar is a Vancouver-based company established in 1994 and is supported by Canadian private sector banks.
Under the business alliance, Northstar can offer direct loans to creditworthy overseas buyers of eligible Australian capital goods, supported by an EFIC guarantee for a significant percentage of the exposure. Through this relationship, EFIC is able to consider supporting deals from A$100,000 to A$5 million involving Australian exporters, with payment terms of up to five years.