EFIC supports cattle breeding deal with Russia


Export Finance and Insurance Corporation (EFIC), Australia’s export credit agency, has provided a US$39.7 million export finance guarantee in support of contracts to purchase breeding cattle by the Bryansk Meat Company (Bryansk) from Australian suppliers.

Established with the support of the Russian government, Bryansk, part of the Miratorg group, is tasked with rebuilding the country’s breeding stock.

EFIC is providing the export finance guarantee to HSBC Bank plc (HSBC) in support of a loan from HSBC to Vnesheconombank, the Russian government-owned bank financing Bryansk’s purchase.

EFIC’s Executive Director, SME and Mid-Market, Andrea Govaert, said: “EFIC’s export finance guarantee facilitates Bryansk’s purchase of breeding cattle from Australian suppliers. “In doing so, this helps Australian suppliers compete with those from the United States as Bryansk considers breeding cattle from both countries to meet its quality standards.”

As part of EFIC’s support, the relevant Australian suppliers to Bryansk will be required to comply with Australian Quarantine, State, Territory, and Federal Government requirements including processes for the tracking of shipments by licensed exporters.

In assessing this transaction EFIC followed its normal due diligence processes, which included visiting Bryansk’s agricultural operations in Russia.

“In the past Russia has imported most of its breeding cattle,” said Victor Linnik, President of Agribusiness Holding Miratorg.

“Yet the climate and availability of open range land in the Bryansk area is perfect for raising cattle. With EFIC’s support Australia will make a significant contribution to our target of holding over 18,000 head of breeding cattle distributed across seven farms by the end of this year.”

Petr Fradkov, Deputy Chairman of Vnesheconombank, said that the bank had requested HSBC and EFIC to assist in the provision of finance because the commercial appetite for projects of this nature with tenors greater than five years is limited.

“We sought a longer tenor to reflect the term of the contract. EFIC’s export finance guarantee to HSBC enabled us to provide a loan to Bryansk for the term that it required,” said Mr Fradkov.

Export Finance and Insurance Corporation
Ph: 1800 887 588

Related news & editorials

  1. 09.03.2020
    by      In , In , In
    In May, Advanced Manufacturing Expo will be held for the first time to inspire future growth for the manufacturing industry and industrial sector. The expo’s conference and exhibition will showcase the latest advanced manufacturing production solutions and insights with dedicated solutions... Read More
  2. 23.08.2019
    by      In
    Swiss-based CNC specialist NUM has launched an innovative accelerometer-based active vibration control system for CNC machine tools. The system, primarily designed to improve machining by virtually eliminating tool head vibration, further helps increase productivity by maximising material removal... Read More
  3. 13.08.2019
    by      In
    Maintenance in the era of Industry 4.0 means a clear change of paradigm. ‘Predictive maintenance’ makes it possible to continuously monitor the status of a machine tool, which can reduce unscheduled shutdowns and the costs of failure. Instead of merely reacting to a failure or fault or carrying out... Read More
  4. 21.06.2019
    by      In
    Australian bicycle manufacturer Bastion Cycles produces high-performance road bikes that use filament-wound carbon fibre tubes and a modular design for titanium lugs. For the first three years of operation, Bastion outsourced production of the lugs to RAM3D, an additive manufacturing (AM) provider... Read More