Asia Pacific appoints HypoVereinsbank as adviser
Asia Pacific Resources Ltd APQ
Shares issued 54,387,277 2000-05-17 close $1.29
Thursday May 18 2000
Mr. Gerald Wright reports
Following extensive discussions with a number of major international project financing banks, Asia Pacific Potash Corp. (APPC) confirms the signing of a mandate letter appointing Bayerische Hypo-und Vereinsbank AG (HypoVereinsbank), as adviser and lead arranger for the Somboon potash project debt financing. The projected debt financing requirements, assuming a 70/30 debt/equity ratio, are estimated at approximately $450-million (U.S.), for the construction of the underground mine, a two mtpa processing facility and new export port and railroad maintenance facilities.
HypoVereinsbank, Germany's second largest bank is a sought after partner in the field of project finance. HypoVereinsbank has an impressive track record and is the number one commercial bank providing project finance in Europe and the No. 8 provider worldwide for mining projects. The bank is currently managing over 300 projects and as an experienced arranger and adviser has extensive know-how and expertise from which the Somboon project financing will benefit.
A dedicated team of HypoVereinsbank's project finance specialists, based in Munich and Singapore, will work closely with APPC management to conclude the bank's final project evaluation. This will lead to the development of the most appropriate financial structure for the limited -- recourse project financing. It is anticipated that Hypo Vereinsbank will form a small consortium of international banks to underwrite the project loan. Because of its close co-operation with large multilateral organizations, HypoVereinsbank will be able to assist in arranging multilateral loans. Major international financial institutions and export credit agencies have already expressed interest in participating in the project financing.
APPC believes that the appointment of HypoVereinsbank is a major step toward securing the financing necessary for the construction of the Somboon potash project, located near Udon Thani in northeast Thailand.
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