Altech Chemicals Ltd (ASX:ATC) continues to work with London-based structuring agent Bedford Row Capital and Perth-based Bluemount Capital (WA) Ltd to finalise its green bond offering.
The US$144 million (A$196 million) listed green bond offering and additional project equity would provide the balance of funds required for the recommencement of construction of its Malaysian high purity alumina (HPA) project.
Green bond
An initial bond offering ‘reach out’ phase to potential subscribers was recently completed, with more than 80 groups registering interest to receive the offering documents.
Access to the project data room has been provided to a number of these groups for detailed due diligence with potential subscriber due diligence ongoing.
Detailed presentations and individual discussions are being scheduled on request, and are expected to continue for some time into the future.
Altech is aiming to raise US$144 million (A$196 million) with US$100 million to be used as a secondary debt for construction of its Johor HPA plant in Malaysia with the balance of US$44 million to service bond interest during the plant’s construction phase.
Project equity
Along with the bond offering, Altech is progressing the additional equity component of its HPA project funding requirement.
US-based global investment bank DelMorgan & Co. was appointed by Altech mid-last year to manage the process for potential North American investors.
In late 2021, DelMorgan completed its detailed project familiarisation and due diligence process and recently commenced a targeted marketing and reach out process to potential equity investors.
Altech is aiming to identify a 49% equity partner to provide US$100 million (A$136 million) of equity funding as a project-level investment.
- By Duncan Bailey