Private Sector Finance Secured for Desal Project

AquaSure this week completed the diversification of its investor base with over 20 additional investors from around the world committing to invest a further $1.7 billion in the project.

With unprecedented interest, the syndication process was completed in less than three months and was oversubscribed by more than $900 million.

The Victorian Government, which provided a provided a financial guarantee to ensure the project could go ahead despite the impact of the ongoing Global Financial Crisis, will no longer be required to be a lender of last resort.

Securing the finance for this project demonstrates an overwhelming vote of confidence in Victoria’s infrastructure projects and the health of the Victorian economy.

AquaSure has indicated that without backing from the Government the desalination project would have struggled to get off the ground due to a tightening of the global credit market.

The AquaSure consortium, consisting of Suez Environnement, Degrémont, Thiess and Macquarie Capital Group, was awarded the tender for the project in July.

As is normal with large infrastructure projects, AquaSure, through its lead debt arrangers National Australia Bank and Westpac, sought to diversify the investor base on the project by seeking interest from institutional investors from around the world. Australia’s big four banks, some Australian superannuation funds  and managers and most of the investors from the unsuccessful consortium, BassWater, have now all invested in the project.