Nickel Industries executes new term loan facility  

Nickel Industries (ASX:NIC) has executed a new US$250 million term loan facility with PT Bank Negara Indonesia (Persero) Tbk (BNI) and DBS Bank.

Following the repayment of the US$245 million balance of its April 2024 notes, the facility will support the remaining funding requirements for the Nickel Industries’ acquisition of a 55% equity interest in the Excelsior Nickel Cobalt (ENC) HPAL Project, which is under construction within the Indonesia Morowali Industrial Park.

The interest rate applicable for the facility will be a margin above the Secured Overnight Financing Rate (SOFR) (currently about 5.3%).

Nickel Industries says the establishment of the facility follows the US$400 million multi-tranche facility that was secured in October 2023 from BNI and syndicated to a mix of Asian, European, and global banking institutions.

Commenting on the new term loan facility, Managing Director Justin Werner says the company remains fully funded for the investment in the ENC Project – a low-carbon, ‘next-generation’ HPAL project that will allow it to continue significantly diversifying its business into a suite of class one nickel products being mixed hydroxide precipitate (MHP), nickel sulphate and nickel cathode.

“The ENC Project will be the first nickel project globally to have this operating flexibility and will allow us to significantly diversify our customer base and seek to capture maximum value across different sectors of the class one nickel market,” Werner says.

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Written By Adam Orlando Editor-in-Chief Adam Orlando has more than 20 years’ experience in the media having held senior roles at various publications, including as Asia-Pacific Sector Head (Mining) at global newswire Acuris (formerly Mergermarket). Orlando has worked in newsrooms around the world including Hong Kong, Singapore, London, and Sydney.