EFIC finance guarantee for coal export terminal

Export Finance and Insurance Corporation (EFIC) is providing a US$100 million export finance guarantee to help finance the construction and operation of a $3 billion coal export terminal in North Queensland.

The Wiggins Island Coal Export Terminal (WICET) in the Port of Gladstone, is being
developed by a consortium of coal companies to provide additional export port infrastructure to meet the demand for coal primarily from Asia.

Eight coal companies – Xstrata Coal (on behalf of the Rolleston Joint Venture), Bandanna Energy, Yancoal Australia, Caledon Resources, Cockatoo Coal, Aquila Resources, Northern Energy Corporation and Wesfarmers Curragh – will be the owners of WICET. The terminal is expected to be further expanded in later stages.

There are 19 domestic and international financial institutions providing finance to the project under the senior secured loan facilities.

In addition to their participation in the financing, Sumitomo Mitsui Banking Corporation (SMBC) will provide additional funding with the benefit of a US$100 million export finance guarantee from EFIC.

Peter Field, Executive Director, Origination and Portfolio Management, EFIC, said: “This is an opportunity for EFIC to fill a gap in the financing of an Australian based export infrastructure project that will support the development of the coal export industry in Queensland. Where previously EFIC has not been called upon to support domestic projects, continued constraints in the credit markets have led to EFIC being asked to work with a consortium of commercial financiers and other export credit agencies to support this transaction.”

Phil Breaden, Commercial Director, WICET, said: “This project will facilitate the timely development of important coal infrastructure. Given the large financing requirement and the current volatility in financial markets, we are very pleased to have the support of EFIC and SMBC to complete the financing package.”

Stage 1 of the terminal is expected to be complete by mid-2014.

Once completed, the Wiggins Island Coal Export Terminal is expected to provide more than 80Mtpa of additional coal export capacity through the Port of Gladstone.

Export Finance and Insurance Corporation (EFIC)
Ph: 1800 887 588