Allkem Limited
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Why Did Allkem Seek Additional Financing for the Sal de Vida Project?
Sal de Vida Project Secures Additional Financing: Allkem Limited Boosts Funding to $180M
In a significant development for the energy and mining sector, Allkem Limited (ASX|TSX: AKE), a prominent player in the industry, has announced an increase in project financing for its Sal de Vida Project (SDV) located in Catamarca Province, Argentina. The company has secured an additional $50 million in funding from IDB Invest, bolstering its existing International Financing Corporation (IFC) project financing. This latest funding round underscores the company's commitment to responsible and sustainable development, further solidifying its presence in the lithium sector for a greener future.
Key Highlights
In July 2023, IFC project financing for the development of Sal de Vida Stage 1 was initially signed for up to $130 million.
IDB Invest has now agreed to provide an additional $50 million in long-term financing, with terms that align closely with the IFC's, emphasizing sustainable development in accordance with internationally recognized environmental and social standards.
The combined project financing now totals $180 million, and it remains structured as green and sustainability-linked loans.
Both IFC and IDB Invest have recognized the high environmental, social, and governance (ESG) standards already in place at Sal de Vida by Allkem.
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The funding will support responsible lithium development, local employment, the development of local supply chains, and community development programs.
Martin Perez de Solay, CEO of Allkem Limited, Comments
Allkem's Managing Director and CEO, Martin Perez de Solay, expressed his satisfaction with the increased project financing, particularly the sustainability-linked green loans. He highlighted that these loans align with ambitious environmental and social targets and are essential for the responsible and sustainable development of lithium resources.
This development not only contributes to a greener future but also fuels regional economic growth in the province of Catamarca. Mr. Perez de Solay emphasized the company's pride in partnering with IFC and IDB Invest to ensure the long-term safety and sustainability of operations while fostering local employment, supply chains, and community development programs.
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank Group, is a multilateral development bank with a dedicated focus on promoting economic development in Latin America and the Caribbean through private sector participation. The organization provides financing for sustainable companies and projects, aiming to achieve financial results while maximizing economic, social, and environmental development in the region.
With a substantial portfolio of $16. 3 billion in assets under management and 394 clients spanning 25 countries, IDB Invest plays a pivotal role in offering innovative financial solutions and advisory services to meet the diverse needs of its clients across various industries.
About IFC
IFC, a member of the World Bank Group, stands as the largest global development institution dedicated to the private sector in emerging markets. Operating in over 100 countries, IFC utilizes its capital, expertise, and influence to create markets and opportunities in developing countries.
In fiscal year 2022, IFC committed a record-breaking $32. 8 billion to private companies and financial institutions in developing nations. This substantial commitment underscores IFC's dedication to leveraging the power of the private sector to alleviate extreme poverty and promote shared prosperity amidst global challenges.
In a rapidly changing world, Allkem Limited's latest financing boost reaffirms its commitment to sustainability and responsible development, positioning itself as a key player in the lithium sector while contributing to global efforts for a greener and more sustainable future.
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