Export Finance and Insurance Corporation (EFIC) will provide a $100m export finance guarantee to help secure loan facilities worth $3bn, which will be used to fund the construction and operation of the Wiggins Island Coal Export Terminal (WICET) at the Port of Gladstone, Queensland, Australia.
The terminal is being developed by a group of coal companies to provide additional export infrastructure to meet coal demand in Asia.
WICET is owned by eight coal companies – Xstrata Coal, Bandanna Energy, Yancoal Australia, Caledon Resources, Cockatoo Coal, Aquila Resources, Northern Energy and Wesfarmers Curragh.
According to EFIC the terminal is expected to be further expanded in later stages.
There are 19 domestic and international financial institutions providing finance to the project under the senior secured loan facilities.
Sumitomo Mitsui Banking (SMBC) will provide additional funding with the benefit of a $100m export finance guarantee from EFIC, in addition to their participation in the financing.