Manufacturing News

EFIC supports Bronx International with Turkey contract

Export Finance and Insurance Corporation (EFIC), the Australian Government’s export credit agency, has guaranteed two advance payment bonds to support a new contract secured by Sydney-based exporter Bronx International Pty Ltd.

Bronx International, a specialist in providing galvanising and paint lines, has won a contract for approximately A$6.5 million to supply and install a colour coating line for sheet metal for Alcoat Metal Boyana san.tic AS (the buyer), a subsidiary of Sistem Metal A.S., a Turkish manufacturer of advertising boards and signs.

St.George Bank has issued two advance payment bonds to the buyer as security for advance payments made to Bronx International under the export contract. EFIC has provided guarantees to St.George for 80 per cent of the face value of the two St.George bonds. The EFIC guarantees are for amounts of A$356,000 and £98,000 respectively and will expire in December 2011.

EFIC has guaranteed the St.George bonds under an existing bonding line with Bronx International, a facility that has also seen EFIC support Bronx International’s contracts in Ukraine and Argentina.

“EFIC’s bonding line allows us to bid for new overseas contracts with the confidence that we if we win, we can meet our customers’ bonding requirements,” said Rod Sawyers, managing director of Bronx International.

“EFIC’ s support means we don’t have to provide full cash security for the value of the bonds, so our working capital is freed up to deliver our overseas customers’ orders.

“With this latest bond support, EFIC continues our long-standing relationship with Bronx International,” said Andrea Govaert, EFIC’s executive director, SME.

“Demand for bonding facilities from SME exporters remains strong, particularly in the construction and manufacturing sectors. EFIC’s bond facilities help Australian companies like Bronx International compete more effectively in global markets,” said Govaert.

St.George Bank Senior Trade Finance Manager Darren Morris, said, “St.George worked closely with Bronx International and EFIC to assist with the company’s expansion in Turkey. It reflects our willingness to assist our customers with innovative funding solutions to suit their individual needs.’”

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