HSBC has extended an ECA-backed US$47.5mn loan to Vnesheconombank to finance exports of Australian breeding cattle to Russia.
The loan will help Vnesheconombank fund cattle imports for Russian agribusiness Bryansk Meat Company. Guaranteed by Australia’s Export Finance and Insurance Corporation (Efic), it will increase business for Australian cattle exporters, including Elders International Australia and Landmark Global Exports, and support Russia’s cattle stock rebuilding project.
This is the second time Efic has guaranteed an export finance loan to Bryansk – part of Miratorg Agribusiness Holding – after last year’s initial provision of US$42.34mn.
Andrea Govaert, Efic’s executive director of SME and mid market, says: “This deal underlines our support for the agribusiness industry and further supports Bryansk Meat Company’s purchase of breeding cattle from Australian suppliers.
“As with our original export finance guarantee, it also helps the competitiveness of Australian cattle suppliers. Miratorg Agribusiness Holding has indicated it is happy to continue to purchase Australian stock and there is the possibility for further shipments in 2012-13.”