The New Zealand Treasury's Export Credit Office (NZECO) and AIG Australia Ltd have entered into an arrangement to assist New Zealand exporters secure surety bonds into American Samoa and other US Pacific territories.
Surety bonds are a form of performance guarantees provided to a buyer and often range between 50 – 100% of the contract value. They are typically required in construction contracts and normally if the project is receiving US federal or local government funding.
The NZECO arrangement is designed to assist New Zealand exporters overcome difficulties they may experience in securing a bonding line from a surety bond provider because of insufficient tangible security and the lack of familiarity with New Zealand companies.
"We are very pleased with this new arrangement with AIG, and look forward to assisting New Zealand companies to access US Government funded projects in American Samoa," says Chris Chapman, Manager of the NZECO.
"AIG has a strong presence in the New Zealand insurance market and has committed through this arrangement with NZECO to provide support to New Zealand companies when conducting business abroad. I look forward to working closely with NZECO and their clients," said Liam Berry, Surety Manager, AIG Australia.
This arrangement is based on a similar and successful arrangement that NZECO has had with other surety bond providers in North America. To date NZECO has underwritten surety bonds ranging from USD 1 million to USD 21 million in support of New Zealand companies delivering airport baggage handling, construction, public safety and ICT projects, with total exports supported of approximately $120m.
NZECO (www.nzeco.govt.nz) is New Zealand's export credit agency which provides a range of government-backed trade credit insurance and financial guarantees to New Zealand exporters. NZECO's products can cover repayment and performance risks which may enable exporters to secure and fund export sales.
American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.
AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at www.aig.com. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is subject to actual policy language.