EFIC supports Tescorp Hydraulics with UK expansion
Export Finance and Insurance Corporation (EFIC) will help Cairns-based hydraulics manufacturer, Tescorp Hydraulics finance their largest ever export contract.
Tescorp has secured a A$1.5m contract to supply a purpose built system for the laying and feeding of cable through underground systems to a UK based customer responsible for the delivery of the UK Woodhead Tunnel Project.
EFIC’s providing an EFIC Headway working capital guarantee to Tescorp’s bank, the Commonwealth Bank.
“EFIC is delighted to support Tescorp’s participation in this exciting international opportunity” said EFIC’s managing director, Angus Armour. “At EFIC we are continually developing flexible and innovative financial solutions to help support Australian small-to-medium-sized exporters in achieving international success.”
Tescorp’s customer is part of the UK’s National Grid’s ‘Electricity Alliance’. As part of their infrastructure upgrading works, new 400,000 volt transmission electricity cables are to be installed in the closed Woodhead Tunnel which runs between National Grid’s substations at Stalybridge, east of Manchester and Thorpe Marsh, near Doncaster. Work began in February 2008 and will take approximately two years to complete.
“Having provided similar machines for projects in Auckland and Sydney we were confident we could meet our customer’s requirements; however, financing the initial production for a project of this size presented a new challenge” said Tescorp’s Managing Director Terry Steen. “We were impressed with EFIC’s ability to work with our bank and put together a financing package with only a few days’ notice”
EFIC Headway working capital guarantee is designed to help a small to medium-sized exporters who need to access additional working capital when growing their export business. Provided the exporter banks with one of EFIC’s participating panel of lenders, EFIC may be able to provide a financial guarantee, enabling the bank to lend additional funds without requiring added security.
EFIC offers a range of financial and insurance services, which also include guarantees, direct loans, export payments insurance and political risk insurance.