EFIC provided a bonding facility to GRM International
GRM International is one of Australia’s leading providers of project management services and technical assistance for international development projects.
The company, which focuses on social infrastructure projects across a wide range of sectors, needed assistance to finance its strong international growth.
Export Finance and Insurance Corporation (EFIC), Australia’s export credit agency, provided an A$10 million bonding facility to support the Brisbane-based company’s international contracts.
The one-year revolving facility enables GRM International to request that EFIC provide advance payment and performance bonds on its behalf or for certain group companies.
An advance payment bond gives a buyer comfort that if a supplier doesn’t fulfil their contract obligations, an upfront payment from the buyer will be returned. A performance bond gives the buyer assurance that if the supplier doesn’t perform the contract, funds will be available to reduce the buyer’s losses.
The first bond issued under the facility supports GRM’s contract with the Abu Dhabi Food Control Authority, worth approximately A$7 million, to establish and manage a farmers’ association in the emirate’s Western Region. EFIC’s facility supported the issue of a UAE Dhs 13.5 million (around A$4 million) advance payment bond required by the contract.
‘EFIC’s bonding facility gives us additional confidence to compete for large international contracts and is helping us pursue our growth strategy by freeing up our working capital’, said GRM’s managing director Kim Bredhauer. ‘The flexibility of the EFIC facility will allow us to access bonds for a variety of projects over the coming year.’
GRM’s clients include national aid agencies such as AusAID and UKaid, the European Commission, multilateral development banks and government authorities.
The company has almost 40 years of development experience and has managed over 700 projects in more than 120 countries.
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