Genex Power has announced that the Northern Australian Infrastructure Facility (NAIF) Board will support the Kidston Stage Two Project through the provision of an indicative term sheet for a long-term concessional NAIF debt facility for up to $516 million.
James Harding, CEO of Genex, was please with the development.
“Genex is very pleased to work with NAIF in the development of the Kidston Stage Two Project. The issuance of the Term Sheet and NAIF’s support to negotiate the detailed terms of a long tenor, concessional loan which would secure the bulk of the project debt funding, is a significant milestone in the development of the project.”
Laurie Walker, CEO of NAIF, said that it was a good investment for the organisation.
“NAIF sees the project as important for the transition of the market to lower emission renewable energy sources, and the Board’s preparedness to consider a capital commitment of the size referred to in this announcement reflects the alignment of this type of project with NAIF’s objective to contribute to the transformation of Northern Australia through infrastructure development,” Ms Walker said.
The NAIF Term Sheet provides for a secured, long tenor subordinated loan of up to $516 million to the project, and is subject to a number of conditions and customary terms for a project financing term sheet.
Provisions include:
- Negotiating offtake arrangements and grid connection for energy and dispatch rights for the project to the satisfaction of NAIF
- Concluding a cost benefit analysis in accordance with the provisions of the NAIF Investment Mandate which will be important in determining the level of concessionality that the NAIF can offer the project
- Finalising terms for senior debt funding
- Securing the balance of equity funding from an acceptable equity partner
- Due diligence on a range of project matters
- Negotiation and execution of project and facility documentation
- Final NAIF credit approval, and Board Investment Decision
Each of these conditions, including key project elements which need to be further developed, will need to be satisfied and due diligence completed prior to the NAIF Board making an investment decision.
