A financing structure that incorporates guarantees from the Export-Import Bank of the United States (Ex-Im Bank) and standby letters of credit (L/Cs) has helped The Robbins Company win this year's Small Business Environmental Project Exporter of the Year award.

The Ohio-based company received its award from Ex-Im Bank at its annual conference held this month in Washington.

Drought alleviation

Robbins - which designs and services tunnel boring, hydroelectric, sewer rehabilitation and irrigation machinery - won a US$131 million contract to supply equipment and services to build an irrigation tunnel in India, backed by a US Ex-Im Bank US$25 million working capital guarantee facility.

The tunnel, which will supply water to a drought-stricken area of India's Andhra Pradesh region, is run under the Rajiv Gandhi Wildlife Sanctuary rather than by over-ground pipeline, thus protecting the environment.

Financing structure

Robbins' chief financial officer Jim Virost explains how the company used a US Ex-Im Bank facility with standby L/Cs to finance the project.

"We needed a loan guarantee fairly quickly. Through the Wells Fargo HSBC Trade Bank, which has a fast track programme with Ex-Im Bank, we received Ex-Im Bank's working capital guarantee, and the Trade Bank provided standby L/Cs securing advance payments made by our Indian customer," says Virost, who maintains the tunnel project would not have been possible without US Ex-Im Bank.

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