Roy Hill
Portland acted as Financial Advisor to the US Export Import Bank on the US$7.2bn debt financing for the Roy Hill greenfield iron ore mine in Australia.
The project involved the greenfield development of an iron ore mine, a processing and beneficiation plant, rail transportation and port storage, loading and shipment facilities. Portland acted as Financial Advisor to the US Export Import Bank.
Project Financing — Greenfield Iron Ore Project (Australia). Financial Advisor to US EXIM.
The Portland team was responsible for advising on all financial aspects of the project including:
- Developing an acceptable risk allocation to accommodate the project’s complex multiple-SPV structure including sponsor support for certain key project risks (elements of construction risk and offtake risk).
- Assisting in the negotiation of the term sheet.
- Working with the market, technical, transportation and insurance consultants.
- Development of the financial model and conducting sensitivity analysis and breakeven analysis.
- Reviewing all project agreements and developing a satisfactory structure for iron ore sales and acceptable counterparties within the Chinese steel market.
- Reviewing EPC arrangements.
- Assisting EXIM with their credit approval process and negotiation of loan documentation.
Total project cost of US$12.1bn with a debt to equity ratio capped at 60:40. The financing was provided by US EXIM, JBIC, NEXI, KEXIM, KSURE and a syndicate of commercial banks. Debt tenor for the project was 10.75 years.