SMCG: Financing a $12m Machinery Rebuild in Peru
Introduction San Martín Contratistas Generales S.A. (SMCG) is a Peruvian private company and one of the region's most significant mining construction contractors, with international operations spanning Colombia and Spain. To support Peruvian infrastructure growth and mining projects, SMCG signed two contracts with Dints International in 2021 and 2023, valued at $2m and $10m respectively. These agreements focused on supplying heavy machinery and spare parts to facilitate a comprehensive fleet rebuild.
The Challenge Securing local financing for spare parts dedicated to machinery rebuilds is notoriously difficult in the region. SMCG needed a solution that would relieve immediate cash flow restraints and allow them to finance the rebuilds over a medium-term timeframe of five years.
Our Strategy Dints acted as the project integrator, giving SMCG access to international suppliers. We brought together commercial parties, logistics partners, and the financing ecosystem into a coordinated, ECA-backed structure—managing everything from quotation to order delivery.
This strategy made UK and international supply highly accessible to SMCG. Crucially, it enabled suppliers to be paid as if they were selling into their domestic markets, reducing friction and unlocking the critical supply of parts.
Measurable Outcomes & Sustainable Impact The transaction successfully unlocked the necessary medium-term financing, marking Dints' first UK Export Finance Standby Letter of Guarantee (UKEF SBLG). Operationally, we managed the shipment of $8m worth of spare parts over the peak season, overcoming significant logistical hurdles to ensure delivery.
Beyond the operational success, the project delivered a strong environmental impact. By securing finance for spare parts, SMCG was able to reuse and rebuild their existing machinery rather than purchasing new equipment, directly supporting sustainable resource management.
Financial Structure
- Contract Value: $12m total across two contracts ($2m and $10m).
- Finance Support: A UK Export Finance (UKEF) loan guarantee.
- Financing Ecosystem: The transaction was supported by UKEF, Santander, and LFC.
- Commercial Model: A tailored structure that paid suppliers directly, making export supply accessible while supporting SMCG’s five-year fleet rebuild program.
