Project Finance

A$74 Million Loan Package from NAIF

Highlights

  • The Board of the Northern Australia Infrastructure Facility (NAIF) has approved an Investment Decision for A$74 million Beyondie SOP Project funding.
  • The NAIF funding is a major milestone, allowing Kalium Lakes to bring forward the construction of a 78 kilometre gas pipeline and a gas fired power station, reducing operating costs by approximately A$62-65 per tonne.
  • The NAIF funding will also facilitate the construction of infrastructure supporting the Beyondie SOP Project including road and communication infrastructure, an airstrip and an accommodation village.

About NAIF

NAIF was established on 1 July 2016 by the Northern Australia Infrastructure Facility Act 2016 (NAIF Act) and is a corporate Commonwealth entity.  The objective of the NAIF Act is to provide financial assistance to the States of Queensland, Western Australia and the Northern Territory for the construction of infrastructure to benefit northern Australia.  NAIF may approve loans to 30 June 2021 which total A$5 billion in aggregate (with loan tenors of up to the longest term of Commonwealth borrowings).

Learn more about NAIF at: https://naif.gov.au/

A$102 Million debt funding with KfW IPEX-Bank

Highlights

  • Kalium Lakes Limited has agreed non-binding terms with German KfW IPEX-Bank for A$102 million of senior project debt funding.
  • The KfW IPEX-Bank debt facilities are in addition to the A$74 million debt funding package recently approved by the Northern Australia Infrastructure Facility (NAIF).
  • Significant parts of the KfW IPEX-Bank funding is expected to be covered by a German export credit guarantee from German Government export credit agency, Euler Hermes.

About KfW IPEX-Bank GmbH

 Within KfW Group, KfW IPEX-Bank is responsible for international project and export finance.  It offers medium and long-term financing to support key export industries, to develop economic and social infrastructure, to fund environmental and climate protection projects and to secure the supply of raw materials.

KfW IPEX-Bank operates as a legally independent group subsidiary and is represented in the most important economic and financial centres across the globe.

Learn more about KfW IPEX at: https://www.kfw-ipex-bank.de/International-financing/KfW-IPEX-Bank/

Euler Hermes is located in more than 50 countries and five continents across the world.

It works exclusively with businesses and their customers to assess trade and credit risk accurately. The Company also ensures measures are in place to collect payments due.

Euler Hermes offers a number of insurance and collection services including protection, fraud, surety (also known as bonding) and more.

For its larger clients, it also runs an entity called World Agency, which is specifically designed for multinational companies.

Learn more about Euler Hermes at: https://www.eulerhermes.com/en_global.html

Product Offtake

Historic Binding Offtake Agreement with Global Potash Producer K+S


Binding Offtake Agreement – Key Elements


The Agreement includes the following key elements:

• An initial 10-year term to provide K+S with 90,000tpa of SOP products, representing 100% of the anticipated production from Phase 1 of the Beyondie Sulphate of Potash Project.

• Pricing is linked to the sales price realised by K+S, which will also receive a marketing fee for selling and distributing the SOP product.

• K+S offers Kalium Lakes unparalleled expertise and technical support in relation to design, construction and commissioning.

About K+S

K+S is a customer-focused, independent minerals company for the Agriculture, Industry, Consumers, and Communities segments and wants to grow the EBITDA to €3 billion by 2030. The Company has approximately 15,000 employees working to enable farmers to provide nutrition for the world, develop solutions that sustain different industries and improves daily life for consumers.

K+S continually meets the growing demand for mineral products from production sites in Europe, North and South America, as well as through its worldwide sales network. In striving for sustainability K+S is deeply committed to its responsibilities to people, the environment, the communities and the economy in the regions in which it operates.

Learn more about K+S at: http://www.k-plus-s.com