Altech Batteries Ltd Stock Market Press Releases and Company Profile
Executes Commitment and Final Terms for US$190m Loan
Executes Commitment and Final Terms for US$190m Loan

Perth, Feb 2, 2018 AEST (ABN Newswire) - Altech Chemicals Limited (Altech/the Company) (googlechartASX:ATC) (googlechartA3Y:FRA) is pleased to announce that it has executed commitment together with agreed terms and conditions from German government-owned KfW IPEX-Bank formalising the total debt package of US$190 million for its proposed Malaysian high purity alumina (HPA) project.

Highlights

- Commitment and terms documentation executed with KfW IPEX-Bank

- Total debt package US$190 million

- Export credit cover US$170 million

- Long tenure and at attractive terms

US$170 million of the project finance package is covered by the German export credit agency (ECA) with the balance of US$20 million at normal commercial terms. The specific details of the KfW IPEX-Bank loan package including the ECA covered facility are confidential, however as previously announced the ECA covered loan (US$170 million) is at long tenure and highly attractive terms. The balance of US$20 million of borrowing will be a 7-year loan including a 2-year construction period, resulting in a 5-year repayment period and at customary lending terms. By comparison to typical project finance, the project finance agreed with KfW IPEX-Bank is extremely attractive. The final step to finance close is the execution of the facility agreement documentation and the satisfaction of various conditions precedent required before first debt draw-down.

Project Equity Funding

The Company has commenced the project equity funding process, which is a condition precedent to debt draw-down. The final required equity component of project funding will be determined as the Company works though the balance of funding options and financing costs. The final funding mix may include subordinated mezzanine finance and/or project level equity participation. Since the KfW IPEX-Bank debt funding was confirmed in late 2017, there is heightened interest in the Company and its HPA project and a number of project funding options have been presented. The Company is also exploring potential project-level joint venture options with several major industrial groups that could result in a major reduction of the equity amount required to fund the project and subordinated mezzanine finance with associated equity.

The objective is to achieve a robust project funding solution that maximises shareholder returns and minimises dilution.


About Altech Batteries Ltd

Altech Chemical Ltd ASX:ATCAltech 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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Contact

Corporate
Iggy Tan
Managing Director
Altech Batteries Limited
Tel: +61-8-6168-1555
Email: info@altechgroup.com

Martin Stein
Chief Financial Officer
Altech Batteries Limited
Tel: +61-8-6168-1555
Email: info@altechgroup.com



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