EFIC supplied an export finance guarantee and advance payment bond to support Bronx International's export transactions
Bronx International Pty Ltd has developed a global reputation for its specialised galvanising and paint lines, used to coat metal sheeting destined mainly for building products.
The Sydney-based engineering company, which also supervises the installation and commissioning of its lines, has carved out an export niche in a range of emerging markets and developing countries across Central and Eastern Europe, Latin America, Africa and Asia.
Export Finance and Insurance Corporation (EFIC), Australia's export credit agency, is a long-time supporter of Bronx International, providing a number of export finance guarantees (EFGs) and contract bonds to support the company’s export transactions in Ukraine, Russia, Slovakia, Argentina and Mexico.
EFIC’s EFG facility is a form of buyer finance: it is a guarantee to a bank to encourage the bank to lend to overseas buyers of Australian exports. An Australian exporter’s ability to support a contract bid with buyer finance from EFIC can make them more competitive in global markets.
Most recently, EFIC assisted Bronx International with a comprehensive financial package for a US$17.2 million contract to design and supply a galvanising line for a Ukrainian customer.
“EFIC’s support in the financing of our latest project in Ukraine was crucial,” said Rod Sawyers, managing director of Bronx International. “In light of the tightening credit conditions and a lower risk tolerance in the global financial markets, we might not otherwise have been able to get the funding we required.”
EFIC provided an EFG to support a loan from HSBC Bank plc, based in London, to the Ukrainian buyer’s bank, Alfa Bank (Ukraine), which is funding the purchase of the galvanising line.
EFIC also issued an advance payment bond in favour of the buyer as security for advance payments made by the buyer to enable Bronx International to start work on the contract.
Download print friendly PDF*:
Bronx International Ukraine case study (Size 157Kb)
*Use Adobe Acrobat Reader.