EFIC helped provide a direct loan to Leighton Holdings
Export Finance and Insurance Corporation (EFIC), Australia’s export credit agency, is supporting Leighton Holdings Limited (Leighton) with financing to assist Australia’s largest construction and contract mining group in delivering a number of mining services contracts in Indonesia.
EFIC has entered into a direct loan agreement with ANZ to provide up to US$150m to finance 85% of a leasing facility for Leighton’s Indonesian subsidiaries, PT Leighton Contractors Indonesia and PT Thiess Contractors Indonesia. The facility supports the leasing of mobile mining fleet and equipment for use in their contract mining operations. ANZ will finance the remaining 15%. The loans are supported by a comprehensive Leighton indemnity and a guarantee from certain Leighton Group entities.
Growth in its Indonesian operations meant the Leighton Group needed to expand its existing mining fleet and equipment. Leighton has strong business fundamentals, but approached EFIC for assistance as it had reached its approved offshore leasing limits with its banks.
“EFIC’s financial support will ensure the Leighton Group is in a position to continue to expand its mining services business in Indonesia and consistently deliver on existing mining contracts,” said Scott Charlton, CFO of Leighton Holdings.
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