Altech Chemicals Ltd (ASX:ATC) is continuing efforts to close project financing goals for its high-purity alumina project in Malaysia.
The company’s secondary project finance initiatives include the US$144 million green bond offer and the US$100 million project-level equity funding for the project.
In Europe, Altech has received continued support for the project and its commitment to the senior loan facility of US$190 million from German government-owned KfW IPEX-Bank.
Further, Euler Hermes, the German government export credit agency, has renewed the US$170 million export credit cover for the KfW IPEX-Bank senior loan facility.
Looking ahead, while headwinds in the current equity and financial markets are challenging, management remains committed to the project finance process, and a positive project finance outcome.
Project progress
Altech’s long-standing strategic engineering partner and metallurgical consultant SMS group GmbH are contracted to construct the Malaysian HPA plant.
The company continues to work with London-based structuring agent Bedford Row Capital Plc and Perth-based Bluemount Capital (WA) Pty Ltd to finalise a US$144 million green bond offering.
In parallel with the bond offering, Altech is continuing with its endeavours to secure commitments for a project equity investment of US$100 million.
US-based global investment bank DelMorgan & Co has advanced several leads and potential investors in relation to the funding, and presentations by Altech and detailed discussions with interested parties continue.
In Malaysia, the HPA plant site within the Tanjung Langsat Industrial Complex remains in sound condition.
The company has conducted regular site maintenance work and permanent site security is in place. The maintenance workshop, electrical substation and stormwater management infrastructure remain in as-constructed condition.