Altech - Debt Package Increased to US$190 million
Altech - Debt Package Increased to US$190 million
Perth, Dec 20, 2017 AEST (ABN Newswire) - Altech Chemicals Limited (Altech/the Company) (ASX:ATC) (FRA:A3Y) is pleased to announce that German government owned KfW IPEX-Bank has advised the Company of credit approval for a total project finance debt package of US$190 million for its high purity alumina (HPA) project.


- Total debt package increased to US$190 million

- Export credit cover increased to US$170 million

- Credit approval received from KfW IPEX-Bank

- Long tenor and at attractive terms

The approved finance package is higher than the US$185 million of project finance initially proposed, reflecting the robust nature of the project. The export credit cover (ECA) component of project finance is increased to US$170 million (was US$165 million) and the Company has also been advised that this amount was approved by the German government inter-ministerial committee (IMC). The balance of US$20 million will be at commercial terms.

The specific terms of the KfW IPEX-Bank loan package including the ECA covered facility are confidential, however as previously stated the ECA covered loan (US$170 million) is targeted as long tenure and at highly attractive terms. The balance of US$20 million of borrowing will be at customary lending terms. By comparison to typical project finance the proposed debt package is extremely attractive.

As the sole lender, KfW IPEX-Bank and the Company will move to execute a loan facility agreement.

Commenting on the increase in the total debt package, Altech managing director Mr Iggy Tan said "the Company is delighted with the increased total debt package offered by KfW IPEX-Bank for the project and especially the additional loan cover made available by the German government (ECA cover).

In our opinion the additional project finance is another significant vote of confidence for the project and follows an extensive detailed independent due diligence process", Mr Tan concluded.

About Altech Chemicals Ltd

Altech Chemical Ltd ASX:ATCAltech Chemicals Limited (ASX:ATC) (FRA:A3Y) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3).

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire. Synthetic sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. There is no substitute for HPA in the manufacture of synthetic sapphire.

Global HPA demand is approximately 25,315tpa (2016) and demand is growing at a compound annual growth rate (CAGR) of 16.7% (2016-2024), primarily driven by the growth in worldwide adoption of LEDs. As an energy efficient, longer lasting and lower operating cost form of lighting, LED lighting is replacing the traditional incandescent bulbs.



Iggy Tan
Managing Director
Altech Chemicals Limited
Tel: +61-8-6168-1555

Shane Volk
Company Secretary
Altech Chemicals Limited
Tel: +61-8-6168-1555

Investor Relations (Europe)
Kai Hoffmann
Soar Financial Partners
Tel: +49-69-175-548320

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