Our solution - bonds
If you are part of an export supply chain, it is common for you to provide one or more bonds (or guarantees) as part of the contract.
Ellton Conveyors is a company that we supported with bonds to enable them to secure an export contract.
Ellton Conveyors provides bulk handling belt conveyors and associated equipment. Its services include design, project management and equipment upgrades.
The NSW-based company’s clients include Rio Tinto, BHP Billiton, Xstrata, Peabody, Centennial Coal and Downer EDI.
Ellton needed to provide several performance guarantees for a contract to build a materials handling system for Centennial Coal’s Lidsdale Coal Loader Project near Lithgow, NSW.
The Commonwealth Bank had previously issued cash-backed bank guarantees to Centennial on behalf of Ellton, however this tied up significant working capital.
We issued a replacement bond that allowed the Commonwealth Bank to release a large portion of the capital, which was used as working capital on this contract and other projects as well.