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- Vulcan Energy (VUL) receives in-principle support from several government-backed export credit agencies (ECAs) for the phase one financing of its Zero Carbon Lithium project in Germany
- VUL’s debt financial advisor, BNP Paribus, approached the ECAs, which include France’s Bpifrance Assurance Export, Italy’s SACE, and Export Development Canada
- Further, market sounding conducted by BNP Paribas with large international commercial and development banks has been completed with positive feedback
- VUL said the total CapEx for phase one of its zero-carbon lithium project was estimated at €1.496 billion (A$2.439 billion)
- The company and its advisors will target the completion of the debt and equity financing processes by the first quarter of 2024
- VUL shares are down 1.52 per cent and trading at $5.84 at 10:29 am AEST
Vulcan Energy (VUL) has received in-principle support from several government-backed export credit agencies (ECAs) for the phase one financing of its Zero Carbon Lithium project in Germany.
The company’s debt financial advisor, BNP Paribus, approached the ECAs, which include France’s Bpifrance Assurance Export, Italy’s SACE, and Export Development Canada.
Further, VUL said an initial market sounding conducted by BNP Paribas with large international commercial and development banks, including European and German banks, had recently been completed with positive feedback.
VUL said the total CAPEX for phase one of its zero-carbon lithium project was estimated at €1.496 billion (A$2.439 billion).
The VUL Zero Carbon Lithium project will be eligible for the French Government’s Garantie des Projets Stratégiques (Guarantee of Strategic Projects), established to support projects deemed of national interest to the French economy, both domestically and internationally.
SACE, Italy’s government ECA, has confirmed the project’s eligibility to its tied Export Credit Program, based on the expected presence of an Italian contractor among the construction contractors.
Meanwhile, Export Development Canada has also confirmed its interest in participating through direct lending in the financing of phase-one development, based on the expected presence of Canadian contractors, including the project’s purchase of Canadian goods and services.
Feedback from further government-funded ECA eligibility of the VUL project is expected in the coming month, with Vulcan and its advisors targeting completion of the debt and equity financing process in the first quarter of 2024.
The company’s unique zero-carbon lithium project aims to decarbonise lithium production by developing the world’s first net carbon-neutral business, with the co-production of renewable geothermal energy on a mass scale.
VUL shares are down 1.52 per cent and trading at $5.84 at 10:29 am AEST.
