Altech - Debt Package Increased to US$190 million
Perth, Dec 20, 2017 AEST (ABN Newswire) - Altech Chemicals Limited (Altech/the Company) (
ASX:ATC) (A3Y:FRA) 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.
Highlights
- 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 Batteries Ltd
Altech Batteries Limited (ASX:ATC) (FRA:A3Y) is a specialty battery technology company that has a joint venture agreement with world leading German battery institute Fraunhofer IKTS ("Fraunhofer") to commercialise the revolutionary CERENERGY(R) Sodium Alumina Solid State (SAS) Battery. CERENERGY(R) batteries are the game-changing alternative to lithium-ion batteries. CERENERGY(R) batteries are fire and explosion-proof; have a life span of more than 15 years and operate in extreme cold and desert climates. The battery technology uses table salt and is lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure to critical metal price rises and supply chain concerns.
The joint venture is commercialising its CERENERGY(R) battery, with plans to construct a 100MWh production facility on Altech's land in Saxony, Germany. The facility intends to produce CERENERGY(R) battery modules to provide grid storage solutions to the market.
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