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Wiggins Island Coal: EFIC domestic

13 October 2011

It took 33 lenders, five tranches and the first-ever domestic guarantee from the Export Finance and Insurance Corporation (EFIC) but the Wiggins Island Coal Export Terminal (WICET) has proven that large-scale project financings can still be inked in Australia; with a little effort.

The A$2.5 billion ($2.4 billion) project is sponsored by WICET Ltd (whose shareholders are Aquila Resources, Bandanna Energy, Caledon Resources, Cockatoo Coal, Northern Energy Corporation, Xstrata Coal, Yancoal Australia and Wesfarmers Curragh) and involves the construction of the first phase of a 27 million tonnes per year coal export terminal. The terminal will be operated by the Queensland Government-owned Gladstone Ports Corporation and the first exports are due in mid-2014.

From the start, the sponsors and their financial adviser Australia and New Zealand Banking Group (ANZ) knew that finding this debt amount was going to be a delicate process. Limited capital, tight tenors, high...


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