The KfW IPEX-Bank Debt Facilities are subject to securing a positive decision from the German Government Inter-Ministerial Committee for the export credit agency Euler Hermes, which is expected in July 2019, and the execution of formal documentation. Other customary conditions precedent will apply to the debt facilities including, completion of the residual equity requirement and a Final Investment Decision by the Kalium Lakes’ Board.
These facilities form part of the overall funding package for the BSOPP, which includes the previously announced AUS$74M funding package provided by the Northern Australia Infrastructure Facility (NAIF) (see ASX announcement 20 February 2019).
The KfW IPEX-Bank Debt Facilities will comprise of two parts:
- Part A - €33 million (or US$ equivalent) facility guaranteed by the German Government export credit agency Euler Hermes, with a final maturity of approximately 10 years after completion of construction (the Hermes-Guaranteed Facility); and
- Part B - US$37 million facility, secured against the BSOPP, with a final maturity of approximately 10 years after completion of construction.
Kalium Lakes Managing Director, Brett Hazelden, commented: “We are very pleased to have been offered these KfW IPEX-Bank Debt Facilities, which represent the culmination of many months of diligent work by the Kalium Lakes and KfW IPEX-Bank teams. Final facility documentation is well underway and we anticipate receiving German Government export credit agency Euler Hermes approval in July.
“Kalium Lakes is the only SOP developer to have defined an Ore Reserve, completed a BFS and FEED, obtained a Binding Offtake Agreement with K+S, received both Federal and State Government environmental approval, have been granted two mining leases, successfully negotiated two native title agreements and now have two credit approved debt facilities totalling approximately AUS$176 million.
“These major milestones continue to propel Kalium Lakes towards its goal of becoming Australia’s first Sulphate of Potash producer,” he said.
The facilities were arranged with the assistance of BurnVoir Corporate Finance, Kalium Lakes’ financial adviser.
Read the article online at: https://www.worldfertilizer.com/project-news/03072019/kalium-lakes-receives-kfw-ipex-bank-credit-approval/