EFIC helped JML Engineered Facades provide a bond to its customer
JML Engineered Facades Pty Ltd (JML), a New South Wales-based specialist in glass façade engineering, secured a QAR 33,587,480 (approximately A$10.6 million) contract at the New Doha International Airport in Qatar.
The contract, performed by a JML Group company, was to supply and install a range of building facades and associated works at several areas of the airport.
The company’s customer in Qatar, the head contractor for the new airport project, required that JML arrange a performance bond for approximately A$1 million, issued by a bank with a local presence.
JML approached Export Finance and Insurance Corporation (EFIC), the Australian government’s export credit agency, when the company’s bank requested full cash cover for the bond. This would have tied up working capital that JML preferred to utilise for development of other new business in the region. JML also needed assistance to find a bank in Qatar that would issue the bond.
To help JML meet its customer’s requirements, EFIC drew on its relationship with Citigroup, which has an established network in the Middle East. EFIC issued a guarantee to Citigroup, which in turn issued a bond to the customer through the bank’s Qatar branch.
JML secured the contract in Qatar following its recent work on the expansion of the Dubai International Airport. The company has completed a number of contracts in the Middle East, including work on the Dubai Rail Metro.
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