Tyneside manufacturer wins £2.7m funding for Cyprus exports

A Tyneside manufacturer has settled a £2.7m asset finance deal as they set their sights on exports to Cyprus.

Soil Machine Dynamics (SMD) have secured the asset finance facility to help fulfil and export order to Cyprus.

SMD are selling one of their Remotely Operated Vehicles (ROV) to Senaxell Shipping for its oil & gas exploration work.

The unmanned vehicles are operated by a pilot based on the ship’s deck and are used in subsea operations to a depth of 4,000 metres.

Demand for ROVs is expanding and Senaxell plans to deploy the Quasar MK II Work-Class system ROV they are buying from SMD offshore in the Mediterranean Sea.

Andrew Hodgson, CEO of SMD, said: “This latest deal sees us continue to expand our overseas sales and open up a new market in the Eastern Mediterranean, which is an emerging destination in the search for new offshore oil deposits

“As we look to boost sales in new territories the support of Lloyds Bank and UKEF has been absolutely critical. In addition, their understanding of both the oil & gas sector and our business has enabled them to quickly tailor a package that allowed the deal to complete smoothly.”

The £2.7m funding was arranged by Lloyds Bank Commercial Banking’s Corporate Asset Finance team.

Patrick Sherrington, head of Corporate Asset Finance at Lloyds Bank Commercial Banking said: “This deal has allowed us to support a first class mid-sized UK manufacturer with its export ambitions and is a clear example of Lloyds Bank Commercial Banking working closely with UK clients to help drive the UK economy.

“Supplier credit finance facilities cover bills of payment purchased by the bank from an exporter like SMD, which it receives from selling to an overseas buyer.

“Their use allows the UK-business to receive payment instantly while allowing the purchaser to repay over a longer period of time.”

The funding is underwritten by the Government’s Export Credit Agency, UK Export Finance.

Joe Shephard, Underwriter from UK Export Finance, said: “We are pleased to have confirmed cover to Lloyds Bank Commercial Banking which has assisted the raising of finance for this contract and look forward to working with Lloyds on future projects.

“We are delighted to have assisted SMD within their required timetable on this project and look forward to being able to support them in the future.

“It was particularly satisfying that in this case the export consisted of 100% UK produced content.”

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