The Export Finance and Insurance Corporation (EFIC) has increased its support for Russia’s cattle stock rebuilding project, with the provision of a $US47.5 million export finance guarantee to the Bryansk Meat Company (part of Miratorg Agribusiness Holding).
The guarantee will be used to help the export of Australian breeding beef cattle to Bryansk for the establishment of a fully integrated cattle breeding and beef production facility in Russia. The aim of the project is to provide Russian consumers with beef including Black Angus, and to develop national meat production.
It follows the successful delivery of Australian cattle last year, helped by EFIC’s initial provision of a US$42.34 million export finance guarantee to Bryansk in August 2011.
Bryansk Meat Company is part of Russian agribusiness group, Miratorg Agribusiness Holding, and is responsible for rebuilding the country’s breeding stock. Australian exporters involved in the project include Elders International Australia Pty Ltd and Landmark Global Exports Pty Ltd.
“This deal underlines our support for the agribusiness industry and further supports Bryansk Meat Company’s purchase of breeding cattle from Australian suppliers,” said EFIC’s Executive Director, SME & Mid Market, Andrea Govaert.
“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.”
EFIC is providing the guarantee to HSBC Bank plc (HSBC) in support of a loan from HSBC to Vnesheconombank, the Russian government-owned bank financing Bryansk Meat Company’s purchase.
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.
About Export Finance and Insurance Corporation
Export Finance and Insurance Corporation (EFIC) provides tailored finance solutions to help Australian businesses overcome the financial barriers they face when expanding their export activities.
As the Australian Government’s export credit agency, we help Australian-based businesses to win and finance export, offshore investment and onshore export-related opportunities when their bank is unable to provide all the support they need.
We work directly with businesses and their banks to provide loans, guarantees, bonds and insurance products which can be tailored to meet the needs of both large and small enterprises.
EFIC is uniquely placed to do this: we have over 50 years of export finance and industry expertise, contacts at financial institutions around the globe, the strength of our AAA credit rating and an entrepreneurial business approach to make export and eligible export-related deals happen.
We practise responsible lending and uphold social and environmental best practice in the transactions we support.
‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)' was set up in line with the Russian Federal Law "On the Bank for Development" through the reorganisation of Vnesheconombank of the USSR in 2007.
Vnesheconombank is a key instrument for pursuing the Russian government’s economic policies aimed at increasing natural resources utilisation efficiency, developing high technology industries, unlocking innovative and industrial potential of small and medium-sized enterprises and providing support for export of industrial products and services.
Vnesheconombank participates in implementing investment projects that are significant for the development of the country's economy but that do not receive sufficient resources from private sector, because of their considerable magnitude, complexity or long repayment periods.
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 7,200 offices in 85 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of US$2,556bn at 31 December 2011, HSBC is one of the world’s largest banking and financial services organizations.
HSBC Group operates in Russia through OOO HSBC Bank (RR). HSBC Russia provides a wide range of corporate banking, investment banking and financial markets products and services to corporate and institutional customers
About Bryansk Meat Company (part of Miratorg Agribusiness Holding)
In 2009 Bryansk Meat Company launched a major project in Russia for the production of highly productive cattle breeds. The project based in the Bryansk region involves the building of a cattle-breeding complex, including 33 farms, to manage 250,000 head of cattle. The aim of the project is to provide Russian consumers with beef including Black Angus, and to develop national meat production. The project covers 200 000 hectares of land (currently more than 106 000 hectares are being cultivated) and requires more than 3000 employees. The project investment amount will be 24 billion roubles.
25 May 2012