Financial details of Australian innovator Altech Chemicals Ltd.’s credit guarantee deal announced last week covering its high-purity alumina (HPA) project emerged yesterday when the firm disclosed to investors that the arrangement included a total debt package of US$190 million and an export credit cover of US$170 million.
The deal, brokered with German’s state-owned development bank KfW IPEX-Bank is in excess of the initial proposed amount by US$5 million, as the export credit cover initially requested amounted to US$165 million. Altech advises that the US$20 million balance will be offered at commercial terms.
Altech declined to release further financial details, asserting that such details are confidential at present. However, the firm describe the deal as being offered at “extremely attractive” terms.
The firm said that, as KfW IPEX-Bank is the lone lender for the deal, a loan-facility agreement will soon be executed between the parties to this deal.
Altech’s managing director Iggy Tan was pleased at the outcome, characterizing it as the German government’s optimism in the success of the firm’s HPA endeavor.
“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”
Altech Chemicals is based in Subiaco, Western Australia and is attempting to develop a marketable process for delivering 99.99% (4N) HPA. It plans to construct a 4,000 metric ton per annum HPA plant at Tanjung Langsat Industrial Complex, Johor, Malaysia. The firm is fast-tracking HPA production due to an agreement with Mitsubishi for 100% of its proposed HPA production for ten years. At present, Altech intends to commence project development in 2018.