UKEF opens up export opportunity for Welsh manufacturer Hobbs Valve
Caerphilly-based firm offer a guaranteed 3-year warranty to a new buyer in Singapore with the support of UK Export Finance and HSBC.
| About the transaction: Hobbs Valve | |
|---|---|
| Region | Wales |
| Sector | Manufacturing: valves |
| Export destination | Singapore |
| UKEF support | Bond support scheme |
As part of a £2.2 million contract for the supply of valves to Sembcorp Industries, Welsh manufacturer Hobbs Valve wanted to offer a warranty bond for 30% of the contract value. This would cover the product’s warranty period of 3 years. Banks can issue bonds like this, but only within agreed credit limits. When companies win large orders, as Hobbs Valve did, these limits can be put under pressure.
We met Hobbs Valve along with their bank, HSBC. We agreed to guarantee 80% of the bond, sharing the risk with HSBC in the process. This partnership between bank and government enabled Hobbs Valve to take its first steps into a new market and start a valuable new customer relationship with Sembcorp.
Anthony Foley, Hobbs Valve Financial Controller, said:
UKEF’s support helped us overcome a barrier that could have limited our competitiveness and ambitions. Their ability to use the strength of the government’s balance sheet to support access to finance or financial guarantees boosts our confidence in our export growth potential.
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