ALTECH BATTERIES LIMITED 
It addresses the funding & engineering update on HPA project.
Funding overview
- Altech expects to fund the development of the HPA project using a simple, sole lender, non-dilutive funding structure with one of Europe's leading international project and export finance banks
- An indicative term sheet has been received for a US$70m debt funding package with German KfW IPEX-Bank
-- The combined project finance package is expected to include US$60m of export credit finance at highly competitive terms (LIBOR +2% to 3%)
--- Export credit is a scheme that provides cover to bank lenders to insure against an export loan, and was identified as being applicable to Altech's HPA project because the majority of the project's plant and equipment will be sources from German / European manufacturers and the EPC contractor (M+W Group) is a German company
-- The remaining US$10m is expected to be provided with standard commercial terms
- Thorough due diligence is currently being conducted by consultants on behalf of KfW IPX-Bank
- Definitive (EPC) project capital expenditure estimates are required in order to finalise the project financing agreements
Engineering: Detailed Design
- Detailed design and engineering work is currently being undertaken by German firm M+W Group in Stuttgart, Germany
- M+W Group was appointed as Engineering, Procurement and Construction (EPC) contractor in March 2016
- Leading global engineering and construction firm with extensive Asian experience
- Established Singapore and Malaysian offices, with extensive Malaysian construction experience
- Detailed design is progressing well and on track
To view the full presentation, please visit:
http://abnnewswire.net/lnk/D2IZZ688
About Altech Chemicals Ltd:
Altech Chemicals Limited (ASX:ATC) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3). HPA is a high-value product because it is the major source material for scratch-resistant artificial sapphire glass. Sapphire glass is used to produce a range of high-performance electronic applications such as LEDs, semi-conductors, phosphor display screens, as well as new emerging products such as smartphones and tablet devices. The global HPA market is approximately 19,040tpa (2014) and is expected to at least double over the coming decade.
Source:
Altech Chemicals Ltd
Contact:
Iggy Tan Managing Director Altech Chemicals Limited Tel: +61-8-6168-1555 Email: info@altechchemicals.com Shane Volk Company Secretary Altech Chemicals Limited Tel: +61-8-6168-1555 Email: info@altechchemicals.com
