Deal details
Araguaia Nickel Mine - EKF/Finnvera Covered Loan
Description
Horizonte, a junior nickel company that is developing two 100% owned, tier one projects in Pará State, Brazil, is going to be churning out nickel to feed the stainless steel and battery technology industries for a long time to come. The project financing package arranged over the past year will fund the construction of the Araguaia Ferronickel Project, with first production scheduled for 2024.The Project Financing represents a significant milestone in the Company’s journey to become a major nickel producer and will enable Horizonte to capitalize on the significant projected growth in nickel demand. We believe the terms of the financing package and calibre of the lenders and strategic investors we have attracted is a testament to the strong project fundamentals offered by Araguaia, and the impressive management team they have assembled.The Project Financing included a US$197 million equity component closed in November 2021, with Orion and La Mancha providing US$121 million of equity, Glencore providing US$7 million of equity and the Canadian and UK public markets providing the balance. Orion and La Mancha also provided US$65 million of convertible loan notes, which closed in March 2022.Negotiating the senior debt package required a string of negotiations with close coordination between the sponsors’ technical teams and financial advisor to ensure that the Company could maximize their leverage with ECAs which might support the project. We developed and executed a procurement strategy that would meet both technical and financing objectives.
Assets involved
Companies involved
- Natixis, ING Bank, BNP Paribas, Societe Generale
- Hannes Snellman, Milbank LLP, Arcadis
- Freitas Ferraz Advogados, Norton Rose Fulbright
- Swedish Export Credit Corporation (SEK), La Mancha Resource Capital, Orion Resource Partners
- BNP Paribas
- Societe Generale
- Finnvera plc, Export and Investment Fund of Denmark (EIFO)
- AFRY, FLSmidth
- Societe Generale
- BNP Paribas
- Mazars
- Norton Rose Fulbright
- AFRY
- Natixis
- Roskill
- Horizonte Minerals
- Glencore
Key information
Araguaia Nickel Mine
411$m
23-11-2022
Metals and Mining / Base metals
Brazil
Project & Infrastructure Finance
Equipment for a project
Project finance
New finance
Tranche information
Finnvera Covered Loan
71$
ECA-backed buyer credit
71$m
US Dollar - USD
0
10.5 years
Finnvera plc
Libor
180.0
Participant | role | ticket size |
---|---|---|
BNP Paribas | MLA | 16$m |
ING Bank | MLA | 16$m |
Natixis | MLA | 16$m |
Societe Generale | MLA | 16$m |
Swedish Export Credit Corporation (SEK) | Lender | 7$m |
EKF Covered Loan
74$
ECA-backed buyer credit
74$m
US Dollar - USD
0
8.5 years
Export and Investment Fund of Denmark (EIFO)
Libor
180.0
Participant | role | ticket size |
---|---|---|
BNP Paribas | MLA | 16$m |
ING Bank | MLA | 16$m |
Natixis | MLA | 16$m |
Societe Generale | MLA | 16$m |
Swedish Export Credit Corporation (SEK) | Lender | 7$m |
Convertible Loan Notes
65$
Project Bond
65$m
US Dollar - USD
0
-
-
-
-
Participant | role | ticket size |
---|---|---|
La Mancha Resource Capital | Lender | 32$m |
Orion Resource Partners | Lender | 32$m |
Senior Debt Facility
200$
Term Loan
200$m
US Dollar - USD
0
8.5 years
-
Libor
425.0
Participant | role | ticket size |
---|---|---|
BNP Paribas | MLA | 40$m |
ING Bank | MLA | 40$m |
Natixis | MLA | 40$m |
Societe Generale | MLA | 40$m |
Swedish Export Credit Corporation (SEK) | Lender | 40$m |