Australia’s Export Finance and Insurance Corporation (Efic) has put in place a US$30mn bonding line for Australian engineering and construction company, McConnell Dowell Corporation.

McConnell Dowell will use the bonding line to take advantage of future export opportunities. Its initial use will be to support existing export contracts in Thailand and Singapore.

“These contracts provide significant international growth opportunities for our business and are in keeping with the McConnell Dowell hallmark of using engineering excellence to complete innovative and challenging projects, says CEO of McConnell Dowell, David Robinson.

“Given the scope, complexity and location of our projects, access to bonding is not always commercially available. The ability to utilise Efic’s bonding line will streamline our process for securing future international contracts and free up existing finance and bonding facilities for local projects,” says Robinson.

Under the bonding line, Efic will issue or guarantee bonds to support approved export contracts undertaken by McConnell Dowell or its subsidiaries.

“It’s common practice for buyers to require bonds as security for export contracts. However, financing these bonds can at times limit a company’s capacity to win additional business,” said Efic’s executive director, origination and portfolio management, Peter Field.

Efic’s bonding facilities may assist in such situations, enabling exporters to compete more effectively in global markets. Bonds can be issued as performance, advance payment or warranty bonds, in a number of currencies, either directly or in conjunction with a commercial bond provider.

“We work with commercial providers to leverage the support they can provide Australian businesses operating internationally,” adds Field. “An area where there is an increasing need is in the provision of bonds to support those Australian companies who are growing their order books offshore.”