Altech Batteries Ltd Stock Market Press Releases and Company Profile
Receives Letter of Interest for German ECA Cover
Receives Letter of Interest for German ECA Cover

Perth, Dec 10, 2015 AEST (ABN Newswire) - Altech Chemicals Limited (Altech/the Company) (googlechartASX:ATC) is pleased to report that following a recent presentation to Euler Hermes Aktiengesellschaft ("Hermes") in Hamburg, Germany and its preliminary evaluation of the Company's proposed high purity alumina (HPA) project, Hermes has issued a Letter of Interest (LOI) confirming in principle support under the export credit insurance guarantee scheme of the Federal Republic of Germany (ECA cover).

Highlights

- Letter of Interest (LOI) received from Euler Hermes for German export credit cover (ECA)

- Approximately US$40.0 million of project capital estimated to qualify for ECA cover

- Debt supported by ECA cover is typically at attractive conditions, including long tenure

The LOI is based on the information provided and subject to further in-depth due diligence. In addition, the LOI is not legally binding and has been issued without prejudice to any decision of authorities to provide cover for this project.

The Company has estimated that approximately US$40.0 million of project capital expenditure (from total project capital expenditure of ~US$77.0 million) should qualify for ECA cover and additional senior debt in the region of US$ 15 million, for total project debt financing of around US$ 55 million. Interest rates charged by lenders on debt that is supported by ECA cover is typically at attractive conditions, as the repayment of the debt is insured, also long tenure is usually available in accordance with OECD guidelines.

The initial assessment by Hermes of the availability of ECA cover for Altech's HPA project is a significant financing milestone and closely follows the Company's 2 December 2015 announcement that is has executed a mandate with German bank KfW IPEX-Bank in relation to senior debt project financing.

The next step in securing ECA cover is the submission of a formal application accompanied by a detailed project information memorandum and various supporting documents. Detailed project due diligence follows, and will be coordinated by the Company's mandated bank and its German based project financing consultants.

Altech's managing director, Mr Iggy Tan said that the Letter of Interest from Hermes is a very significant milestone in the Company's endeavours for funding its HPA project. "Obtaining this LOI from Hermes in such a short period of time has been a complete team effort involving our Perth based management, German based financing consultants, KfW IPEX-Bank and our general EPC contractor M+W Group. Feedback from our financing consultants is that only selected projects pass the very important initial assessment by Hermes and that cover is awarded to the vast majority of the projects that succeed at the initial evaluation. ECA cover and subsequent senior debt project financing is still subject to detailed due diligence and there is no guarantee that ECA cover or final debt funding for the project will eventuate, however the Hermes LOI is a significant milestone.

Hermes and ECA cover

Hermes is the appointed export credit agency that administers the ECA scheme for the German government. 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. 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.


About Altech Batteries Ltd

Altech Chemical Ltd ASX:ATCAltech Batteries Limited (ASX:ATC) (FRA:A3Y) is a specialty battery technology company that has a joint venture agreement with world leading German battery institute Fraunhofer IKTS ("Fraunhofer") to commercialise the revolutionary CERENERGY(R) Sodium Alumina Solid State (SAS) Battery. CERENERGY(R) batteries are the game-changing alternative to lithium-ion batteries. CERENERGY(R) batteries are fire and explosion-proof; have a life span of more than 15 years and operate in extreme cold and desert climates. The battery technology uses table salt and is lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure to critical metal price rises and supply chain concerns. 

The joint venture is commercialising its CERENERGY(R) battery, with plans to construct a 100MWh production facility on Altech's land in Saxony, Germany. The facility intends to produce CERENERGY(R) battery modules to provide grid storage solutions to the market.

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Contact

Corporate
Iggy Tan
Managing Director
Altech Batteries Limited
Tel: +61-8-6168-1555
Email: info@altechgroup.com

Martin Stein
Chief Financial Officer
Altech Batteries Limited
Tel: +61-8-6168-1555
Email: info@altechgroup.com



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