AquaSure Said to Seek to Refinance Australia Desalination Plant

AquaSure Pty Ltd., the builder of Australia’s largest desalination plant, is seeking to refinance about A$3.6 billion ($3.26 billion) of loan facilities backing the project, according to three people familiar with the matter.

The group is seeking to diversify funding and asked banks to submit proposals for the financing, the people said. Borrowing costs for the Victorian desalination project to convert seawater to drinking water, which finished construction in late 2012, are expected to fall materially from the original greenfield financing signed in 2009, the people said.

Information came from people familiar with the matter who asked not to be identified because such details on the reverse-osmosis project in Wonthaggi near Melbourne are private.

AquaSure Finance has a A$3.67 billion term loan maturing in September 2016 that pays 350 basis points more than the bank bill swap rate, according to data compiled by Bloomberg that shows the loan has a refinancing option available after five years. John Ridley, a Melbourne-based spokesman for the company, didn’t answer calls to his mobile phone or immediately reply to a text message seeking comment on the refinancing.

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