On Tuesday, March 8, Altech Chemicals Limited, a speciality aluminium technology and production company stated that they have started working on its proposed US$144 million listed green bond offering. For this, they have joined hands with UK-based structuring agent Bedford Row Capital Plc and Australian business Bluemount Capital. The main aim of this collaboration is to support the development of its much anticipated high purity alumina (HPA) processing plant in Malaysia.
Careful examination of the financial, legal, environmental, social and governance (ESG) components of the project has been finished. Also, legal counsel from numerous nations has concluded their reviews of the content. After an initial bond offering "reach out" phase to potential subscribers, more than 80 businesses have shown interest in obtaining the offering documentation. Many of these organisations have been granted access to the project data room to do rigorous due diligence, and a possible subscriber examination is also underway.
Altech plans to raise US$144 million from the bond offering (Series 2021-F3 Notes), with US$100 million going toward secondary financing for the building of its Johor HPA plant and the remaining US$44 million going toward bond interest throughout the HPA plant's development phase. The bonds would be issued by Sustainable Capital Plc, a specialised green bond issuance platform based in the United Kingdom (www.sustainablecapitalplc.com). The bonds will be secured by a senior project finance commitment of US$190 million from KfW IPEX-Bank, which is controlled by the German government.
Altech is working on the extra equity component of its HPA project funding requirement in tandem with the bond issue. In mid-2021, Altech hired US-based global investment firm DelMorgan & Co. (Del Morgan) to oversee this process for possible North American investors. Del Morgan is a specialised investment bank that has completed more than $300 billion in transactions in 75 countries. Over the previous 30 years, the Bank has completed a different types of project finance transactions across the world.
DelMorgan finished its extensive project familiarisation and careful examination process in late 2021, and it has just begun a focused marketing and outreach strategy to potential equity investors. Altech is already distributing extensive business presentation packets and delivering lengthy briefings to potential subscribers, as asked. In addition, similar to the green bond offering, project data room access has been granted to many interested parties to help them with their due diligence. Altech is looking for a 49% equity partner to deliver US$100 million in project-level equity finance.
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