Leighton bags $177m loan to fund Indonesian ops

Export Finance and Insurance Corporation (EFIC), Australia?s export credit agency, is supporting Leighton Holdings Limited (Leighton) with financing that will assist Australia?s largest construction and contract mining group in delivering a number of mining services contracts in Indonesia, the agency announced on Tuesday.

EFIC will provide finance to support the leasing of mobile mining fleet and equipment by Leighton?s Indonesian subsidiaries - PT Leighton Contractors Indonesia and PT Thiess Contractors Indonesia - for use in their contract mining operations.

EFIC is providing a direct loan of US$150 million to the lessor of the mining equipment. The total lease finance facility to be provided will be $177 million, of which 85% will be funded by EFIC and 15 % by one of Leighton?s relationship banks, ANZ. The loan will be supported by a comprehensive Leighton indemnity.

The Leighton Group?s Indonesian businesses form an integral part of their contract mining operations. The recent growth in its Indonesian operations, including the award of a large mining services contract in October 2008, has resulted in a need for the Leighton Group to expand its existing mining fleet and equipment. (alex)