Altech increases debt and ECA cover targets for HPA project

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Altech Chemicals has received a summary of senior facility agreement terms and conditions from KfW IPEX Bank for its proposed Malaysia-based high-purity alumina (HPA) project.

The company is targeting total project debt of $70 million, to be provided by sole lender KfW IPEX Bank. The amount has been increased from the previously-announced target of $60 million. The agreement also includes increased export credit cover from Euler Hermes - up from $40 million to $60 million. The ECA-backed tranche is linked to an EPC and equipment export contract awarded to Germany’s M+W Group. 

Indicative terms proposed by KfW IPEX, which are now under discussion, include description of credit facilities; interest rates and fees; debt payment terms and maturity dates.  Also being discussed are collateral security; affirmative and negative covenants; details of guarantors; closing conditions; financial covenants; representations and warranties; events of default and material adverse changes.

Once completed, Altech’s project will produce 4,000 tonnes per annum of high purity alumina, produced directly from kaolin clay sourced from the company’s deposit in Western Australia.