Altech Chemicals Ltd Closes Project Financing for High Purity Alumina Project in Malaysia
Altech Chemicals Ltd (ASX:ATC) continues its efforts to close funding targets for its high purity alumina project in Malaysia.
The Company’s secondary project financing initiatives include the US$144 million green bond offering and the project-level equity financing of US$100 million.
In Europe, Altech has received continued support for the project and its commitment to the US$190 million senior loan facility from German government-owned KfW IPEX-Bank.
In addition, Euler Hermes, the German government‘s export credit agency, renewed export credit coverage of US$170 million for the KfW IPEX-Bank senior loan facility.
Looking ahead, while the headwinds in the current equity and financial markets are challenging, management remains committed to the project finance process and a positive project finance outcome.
The progress of the project
Altech’s long-standing strategic engineering partner and metallurgical consultant SMS group GmbH are contracted to build the Malaysian HPA plant.
The firm continues to work with London-based structuring agent Bedford Row Capital Plc and Perth-based Bluemount Capital (WA) Pty Ltd to finalize a $144 million green bond offering.
Along with the bond issue, Altech continues its efforts to secure commitments for a capital investment of a US$100 million project.
US-based global investment bank DelMorgan & Co has advanced several avenues and potential investors in relation to the financing, and presentations from Altech and detailed discussions with interested parties continue.
In Malaysia, the HPA plant site at the Tanjung Langsat industrial complex remains in good condition.
The company has carried out regular site maintenance and permanent site security is in place. The maintenance workshop, the electrical substation and the storm water management infrastructure remain in the state of construction.