Nyrstar has today signed a binding agreement for the redevelopment of the Port Pirie smelter, with the support of the South Australian Government and Australia’s export credit agency, Export Finance and Insurance Corporation (Efic).
Given Efic’s knowledge of the transaction and expertise in supporting export projects, the South Australian Government requested Efic’s assistance.
Efic and the South Australian Government worked together to structure a seven-year A$291.25m financing package to facilitate this transaction. The South Australian Government has chosen to underwrite the risk of the financing, with Efic supporting the management of this risk.
“We’re pleased to have provided support to the South Australian Government and Nyrstar to complete this transaction,” said Peter Field, Efic Executive Director, Structured Trade and Project Finance.
“Without this upgrade, the plant would have closed. This project secures over 747 jobs directly, and a further 2,500 jobs indirectly, helping to create significant growth for the local economy. It also makes the plant more efficient and significantly improves its environmental performance,” Mr Field said.