19 November 2015
PROJECT FUNDING UPDATE
Highlights
• Letter of Interest (LOI) for project financing received from German bank
• ECA: Interest in senior-debt project financing utilising German export credit insurance cover
• Highly experienced international project and export finance specialist
Altech Chemicals Limited (Altech/the Company) (ASX: ATC) is pleased to provide an update on the progress of
financing activities for its proposed high purity alumina project (HPA Project).
Following a series of meetings, a major German bank has submitted a Letter of Interest (LOI), expressing its
interest to arrange senior-debt project financing for the Company’s HPA Project. The LOI contemplates senior-debt
project financing that will maximise the use of export credit insurance cover under the German federal government
backed project finance federal export guarantees.
The bank is a leading German export and project finance specialist with experience in the debt financing of mining
and chemical projects worldwide, also in the Asia-Pacific region and projects similar to Altech’s proposed HPA
Project.
ECA is an instrument for the promotion of German exports. It provides a cover to bank lenders to insure against the
risk of an export loan and is administered by Euler Hermes, the German Export Credit Agency (ECA). ECA was
identified as applicable to Altech’s HPA Project because the majority of the plant and equipment will be sourced
from German and other European Union manufacturers and German group M+W is the appointed engineering,
procurement and construction (EPC) contractor.
The first step in the ECA approvals process is for the Company, the bank and M+W to make a presentation to Euler
Hermes for its assessment of the HPA Project, from which an initial determination of the eligibility for ECA funding
will be made.
Altech’s managing director, Mr Iggy Tan said that the interest shown by the German bank to arrange the senior
debt financing of the HPA Project is an important preliminary step for debt financing. “There is still a way to go in
the due diligence process and there is no guarantee that ECA eligibility or final funding will eventuate, however the
interest of this highly experienced and well regarded bank in our project at this early stage is significant.”