Export Finance and Insurance Corporation (EFIC) has provided a performance bond to support the participation of JML Engineered Facades Pty Ltd (JML) in a $10.6 million contract at the New Doha International Airport in Qatar.
JML’s customer in Qatar required that they arrange a performance bond for about $1 million, issued by a bank with a local presence.
EFIC drew on its relationship with Citigroup, which has an established network in the Middle East, providing a guarantee to Citigroup, which in turn issued a bond to the customer through the bank’s Qatar branch.
JML approached EFIC when the company’s bank requested full cash cover for the bond, which would have tied up working capital JML preferred to utilise for development of other new business in the region.
JML secured the contract in Qatar following its recent work on the expansion of the Dubai International Airport. The company has completed a number of contracts in the Middle East, including work on the Dubai Rail Metro.
“Winning the contract in Qatar is welcome recognition of the high quality of our work,”
says JML’s Managing Director Michael Lavis.
“However, providing the security for performance bonds can put our cash flow under strain, and in this case, finding a local bank to assist was also a significant challenge. With the support of EFIC and Citigroup, both issues have been resolved and we can focus on performing the contract.”
“We find that Australian companies operating in the Middle East often face the same\ problems when trying to arrange bonds,” says EFIC’s Executive Director, SME, Andrea Govaert. “We’re delighted to work with Citigroup to help JML overcome these obstacles.”
EFIC and JML have had a relationship since 2000, with EFIC previously having provided a performance bond for a contract undertaken by JML in Hong Kong and a working capital guarantee.
JML Group was established in 1990 as a property development and construction group based in Broadmeadow, NSW. It has undertaken projects throughout the Newcastle and Hunter regions. The group has also diversified into specialised glass façade engineering and has been awarded contracts throughout Australia, Hong Kong, Singapore, NZ, UK and the United Arab Emirates. In the Middle East, the group has worked on the Dubai International Airport Expansion (Phase II), the Palm Jumeirah Mono Rail in Dubai and Dubai Metro Rail projects.
For more information on how EFIC can help Australian export businesses visit: www.efic.gov.au.
Export Finance and Insurance Corporation
Ph: 02 9201 2199