Target Alpha Fine Chemicals
Deal Type Debt & Equity Financing
Buyer KfW IPEX - Bank
Transaction Description

Alpha Fine Chemicals Limited (“AFC” or “the Company”), an innovative player in the lithium-ion battery supply chain based in Australia, today announced that a consortium of investors including the Traxys Group (“Traxys”), a Tier 1 miner, and CIGP together with current shareholders and management have made an investment into AFC through the purchase of convertible notes to fund working capital and due-diligence costs associated with the financing of AFC’s 40,000 tpa nickel sulphate plant to be located in Thailand.

In addition to the new capital, the Company has entered into exclusive negotiations with the Tier 1 miner and Traxys with regards to raw material feedstock supply and battery grade finished product marketing arrangements, as well as the provision of a US$15 million cost overrun support facility and a US$15 million working capital facility.
With a record number of new battery mega-factories being announced, AFC’s 40,000 tpa Thailand plant will be well positioned to capture a share of this growing market opportunity by providing sustainably produced nickel sulphate together with by-products in cobalt carbonate and magnesium sulphate using its proprietary CMN Process technology.

The CMN Process will allow AFC’s Thailand plant to produce high-purity nickel sulphate with the lowest environmental impact to serve the growing EV market. The environmental credentials of the CMN Process are illustrated by the fact that the Industrial Estate Authority of Thailand has confirmed that the project does not require any environmental impact assessment. However, to serve the highest environmental and social standards, AFC has nevertheless elected to conduct an environmental impact assessment and will ensure that the project will be in line with the IFC Performance Standards. AFC has also received promotion from the Thailand Board of Investment, granting AFC significant benefits including zero tax on nickel sulphate and cobalt carbonate for the first eight years of production.

The plant will be located in Amata City Rayong, a world-class industrial estate in the eastern economic corridor and is expected to generate in excess of 110 highly skilled jobs.

Industry Sector
ICFG Office

ICFG Hong-Kong, China successfully advised Alpha Fine Chemicals on its latest funding round

Transaction Details

ICFG China, based in Hong-Kong, CIGP, recently entered into exclusive negotiations with regards to a US$70 million project finance facility with KfW IPEX – Bank and is expecting to reach financial close in the course of this year, subject to customary confirmatory due-diligence.