The Government’s export credit agency will be given broader powers to finance transactions that serve Australia’s national interests and priorities.
Minister for Trade, Tourism and Investment Dan Tehan said the Morrison Government would introduce legislation to enable Export Finance Australia (EFA) to provide equity finance in certain circumstances.
Equity power would enable EFA to better support overseas infrastructure development and export-linked Australian businesses in sectors of economic significance.
An equity financing power will complement EFA’s existing suite of financing powers, comprised of loans, guarantees, bonds and insurance.
“Currently EFA can only provide debt instruments to support Australia’s investment aims,” Mr Tehan said.
“While used sparingly, this power will give EFA more flexibility to support important infrastructure investments in the Indo-Pacific or export-linked projects in Australia.
“This reform will align Australia with other countries, like the USA, China, Japan, Canada and South Korea, which are already making equity investments in our region to support their development and commercial objectives.”
Export Finance Australia is the government’s export credit agency. It provides financial expertise and solutions to drive sustainable growth that benefits Australia and our partners.