During this last Quarter, we were very pleased to reach a milestone of supporting a total $1 billion of export contracts under our General Contract Bond Guarantee.
A bank guarantee (or “contract bond”) is often required by an overseas buyer, to protect themselves from financials losses in the event their NZ contractor fails to properly deliver their contract. The bonds are typically issued by a bank on behalf of the exporter, and the bank requires collateral to secure these bonds. This can be challenging for NZ exporters that may not have a lot of plant and equipment to secure against (eg, ICT / services firms), or for growing firms that are already at their bank credit limits.
NZECO's General Contract Bond Guarantee helps ensure that capable and growing New Zealand companies do not miss out on overseas contracts because they lack sufficient collateral to secure the bonds. To date, this solution has covered over 100 projects into 31 countries, as summarised in the infographics above.