EFIC supported Aircraft Support Industries with a performance bond
Aircraft Support Industries Pty Ltd (ASI), a Sydney-based company which provides specialised aircraft hangars and maintenance equipment, is building on its considerable experience in Asia.
The Sydney-based exporter won a US$13.7 million contract for the design and construction of a wide-body aircraft maintenance hangar at Tan Son Nhat Airport in Ho Chi Minh City, Vietnam, one of Vietnamese Airlines’ main aircraft maintenance bases.
ASI’s contract is with Vietnam Machinery Installation Corporation (LILAMA), a state-owned company contracted for the project by Vietnam Airlines.
Export Finance and Insurance Corporation (EFIC), Australia’s export credit agency, supported ASI’s contract by helping with the provision of a performance bond to LILAMA.
EFIC issued a guarantee to ASI’s bank, National Australia Bank (NAB), to enable the bank to issue a standby letter of credit to the Bank for Investment and Development of Vietnam, which in turn issued the performance bond to LILAMA.
‘We have strong experience in designing and constructing large hangars both in Australia and overseas, but contract bonds can place a strain on our cash flow,’ said ASI’s chief executive officer, Mark Langbein. ‘The financial guarantees from EFIC and NAB have freed up our working capital so we can focus on delivering this new contract.’
EFIC has assisted ASI with export finance since 2001. In addition to the Vietnam contract, EFIC has provided bonds to support the company’s projects in the United Arab Emirates, Jordan and Singapore in recent years.
Over the past 15 years, ASI has completed 10 major hangar projects and over 12 aircraft maintenance docking systems in Australia and in overseas markets such as Singapore, China, Taiwan, Malaysia and Brunei.
Download print friendly PDF*:
Aircraft Support Industries Vietnam case study (Size 153Kb)
*Use Adobe Acrobat Reader.