Australia’s leading independent law firm, Corrs Chambers Westgarth, has advised CSBP Limited (CSBP), a subsidiary of Wesfarmers Limited, on a Fertiliser Security Facility Agreement with Export Finance Australia (EFA) to ensure the continuity of fertiliser supply to Australian primary producers during market disruptions related to the current Middle East conflict.
CSBP is a leading Western Australian fertiliser producer and distributor and a key participant in Australia's domestic fertiliser supply chain. Under the agreement, CSBP and EFA will enter into an over-the-counter contract for difference transactions relating to the import of urea.
EFA is a Corporate Commonwealth Entity whose mandate was recently expanded under the Strategic Reserve Bill. It engages in, encourages and facilitates eligible activities that secure, or are intended to secure, a supply of strategic materials (including fertiliser) in support of Australia’s national and economic security interests. This key federal government backed program transaction represents one of the first exercises of EFA’s expanded mandate.
The transaction was led by banking and finance partner Clare Corke and special counsel Brian Kirkup.
Commenting on the matter, Clare Corke said: “We are pleased to have advised CSBP and Wesfarmers in navigating this novel transaction, which supports the continued operation and competitiveness of Wesfarmers’ chemicals, energy and fertilisers division and reinforces CSBP’s critical role in ensuring continuity of fertiliser supply to Australian primary producers.
“As one of the first exercises of EFA's expanded mandate under the Strategic Reserve Bill, it required a nuanced understanding of both the regulatory framework and the commercial imperatives driving the arrangement, reinforcing the expertise of Corrs’ banking and finance practice in high-profile, time-sensitive matters.”