AWB Limited has announced its 2008 season Nominated Estimated Pool Returns (NEPRs), for those growers who will utilise AWB’s Pool Payment and Finance products for the current wheat harvest.

AWB’s General Manager Australian Commodities, Stuart Richardson, also announced product lending percentages and first advance levels as part of AWB’s declaration of its NEPRs, which form the basis for AWB’s underwritten loans and payments.

“Our pool payment and finance products are fully underwritten and we offer a range of options, so we continue to offer growers great value with security and flexibility, all of which are important,” Mr Richardson said.

“Due to the volatile and changing nature of the wheat market we have made some changes to our harvest finance offering for the 2008 season, including combining AWB Harvest Loan and AWB Flexible Drawdown Loan into one simple product called AWB Loan and adjusting our underwriting fee to $1.90 per tonne.

“It is important to remember that the payments we are offering though our finance products will be topped up as the season progresses. Our intention is to progressively raise the levels and “top-up” earlier payments as sales prices and hedging benchmarks for AWB Pools are achieved.

“Growers who have taken advantage of AWB’s Pool Incentive Contract will receive an even higher harvest cashflow as the $10 premium will be incorporated when calculating loans and payments.

“Clients have the flexibility to select from AWB’s payment options as they progress through harvest load by load, with the ability to use a single option or combine payment options to suit their needs,” Mr Richardson said.

The nature and timing of payment will vary according to the options the client selects;

• Deferred Payment - Up to  90% of the NEPR less 90% of costs, less GST, paid in the July following delivery
• AWB Loan - establishes a credit limit based on a minimum of 70% of the NEPR, less estimated costs. Growers may nominate an amount to be automatically drawn down at harvest or they can drawdown up to the remainder of their total credit limit when it suits them. The total credit limit will be reduced as AWB National Pool distributions are paid. If growers have used AWB Harvest Loan in the past and want to continue to do so no action is required just deliver to AWB Loan.
• Advanced Payment - majority of cash at harvest in the form of a payment, rather than a loan.  Initial payment based on 60% of the NEPR, less 80% of estimated costs.

The AWB Loan, Deferred Payment and Advanced Payment are fully underwritten. This means that in the event that the total AWB Pool Distributions are lower than the grower’s total loan or payment amount (including top-ups), growers won’t be asked to repay any amount lent or paid to them.

For further information on AWB Harvest Finance solutions growers should contact their local Grain Marketer or contact the AWB Grower Service Centre on 1800 054 433.

Media enquiries: Paul Ryan on 08 9318 8290 or 0429 856 883

EASTERN POOL – Nominated Estimated Pool Return 2008/09 AWB Pool ($/t FOB, GST exclusive): 

WESTERN POOL – Nominated Estimated Pool Return 2008/09 AWB Pool ($/t FOB, GST exclusive): 

 Top of page
 

View all Company Announcements