Altech Chemicals Ltd. said Feb. 2 that it executed the commitment and terms documentation for the previously announced US$190 million debt package from German state-owned KfW IPEX-Bank.
The funding comprises a US$170 million project finance package covered by the German export credit agency. This project finance package's specific details are confidential, while the US$20 million balance will be a seven-year loan, including a two-year construction period, implying a five-year repayment period at customary lending terms.
KfW IPEX-Bank approved the funding package in December 2017. It is earmarked for Altech's proposed Johor Bahru high-purity alumina plant in Malaysia.
Altech started a project equity funding process, which is a condition to draw down the loan, though the final amount of the equity component will be determined as the company works through the balance of funding options and financing costs. This may include a subordinated mezzanine finance and/or project-level equity participation.
Furthermore, the company is exploring possible project-level joint venture options with several major industrial groups.
