In the year to 30 June 2007, Export Finance and Insurance Corporation (EFIC) supported Australian exports and overseas investments worth $1.4 billion, more than double the previous year.
This result, tabled out of session in Federal Parliament this week, reflects EFIC’s mandate to support the international growth of Australian companies.
In its 50th year of operations, EFIC provided finance and insurance facilities worth $554.4 million, again more than double the previous year.
EFIC continues to help Australian businesses grow internationally, particularly where it can complement the capacity of private financial markets.
EFIC’s facilities supported exports and investments into diverse markets such as Zambia, Vietnam, China, Russia, Fiji and Jordan.
The mining and construction sectors accounted for the majority of EFIC’s new facilities by value in 2006–07.
In its large transaction for the year, EFIC provided political risk insurance, as well as debt finance, to support Equinox Minerals Limited’s US$715 million Lumwana copper mine development in Zambia.
EFIC is also supporting large construction projects, including Baulderstone Hornibrook’s participation in a consortium to construct a US$104 million bridge in Vietnam, and NPM Group’s construction of a FJ$120 million five-star hotel in Fiji.
EFIC continued to provide strong support to Australian manufacturers, signing a number of smaller facilities with exporters in this sector.
In its first year, the EFIC Headway product enabled a wide range of small to medium-sized exporters to take advantage of new export opportunities.
EFIC Headway – a guarantee from EFIC to a participating bank gives smaller exporters access to additional working capital from their banks, without the need to provide extra security.
EFIC continues to seek new ways to work with other financiers including private banks and insurers to supplement the capacity of commercial markets to assist Australian companies exporting and investing overseas.