IFC project financing proposal for US$200 million for Sal de Vida

BRISBANE, Australia, October 6, 2022 (GLOBE NEWSWIRE) — Allkem Limited (ASX|TSX: AKE, “Allkem” or the “Company”) and the International Finance Corporation (“IFC”) have agreed to a non-binding term sheet for a project finance facility (“IFC loan”) for the Sal de Vida Project wholly owned by Allkem located in the Province of Catamarca, Argentina.


  • IFC has proposed a US$200 million project finance facility to support the development of Allkem’s Sal de Vida Stage 1
  • IFC’s environmental and social performance requirements are recognized globally and will complement the ESG standards already adopted at Sal de Vida by Allkem
  • Subject to completion of commercial terms and other key pending items, including final Board approval by IFC and Allkem, the facility is expected to reach financial close by the end of FY2022.

CEO and CEO, Martín Pérez de Solay, said: “We are already in a strong financial position to self-finance the Sal de Vida project, however, we saw an opportunity to further improve Sal de Vida’s financial structure and partner with IFC, an institution with decades of experience providing financing and sustainable business solutions. . in the mining area.

“Sal de Vida is expected to deliver significant economy-wide benefits that will improve the fiscal outlook, economic performance, and social outcomes at the national, regional, and local community levels.”


IFC’s proposed investment comprises a US$200 million debt package, including up to US$100 million from IFC for up to 9 years and the remainder financed by a syndicate of commercial banks.

The IFC loan and its key terms reflect current market conditions for this facility type, loan size, term, and region.

IFC’s proposed financing structure will provide Sal de Vida with a diversified group of international lenders in an asset-level syndicated loan arrangement and help de-risk the project’s capital structure.

IFC’s Performance Standards are globally recognized as a benchmark for environmental and social risk management in the private sector. IFC has eight Performance Standards: Risk Management, Labor, Resource Efficiency, Community, Land Resettlement, Biodiversity, Indigenous Peoples, and Cultural Heritage.

IFC conducted a robust and detailed environmental assessment, including brine extraction and water use assessment and associated monitoring and mitigation plan. Allkem’s technical teams participated in the process and will work to implement IFC’s Environmental and Social Action Plan (ESAP).

IFC’s technical assessment through senior consulting firms validated the scope, cost, and schedule of the project and provided a detailed risk analysis to ensure adequate mitigation plans are in place.

Next steps

Subject to completion of the terms of the facility, legal due diligence, Allkem Board approval, IFC Management approval and the World Bank Group Board of Directors, the facility is expected to close before end of 2022.


IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working in more than 100 countries, IFC uses its capital, experience, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, harnessing the power of the private sector to end extreme poverty and boost shared prosperity as economies grow. they face the impacts of current world problems. For more information, visit www.ifc.org.


The Sal de Vida Stage 1 Project is designed to produce 15ktpa of predominantly battery grade lithium carbonate. The 2022 Feasibility Study estimated a capital expenditure of US$271 million and cash operating costs of US$3,612 per ton. Construction began in January 2022.

Stage 1 project economics include a pre-tax net present value of $1.23 billion at a 10% discount rate, a 50% pre-tax internal rate of return, and a payback period of 1.75 years from the start of commercial production.

As of June 30, 2022, Allkem had $664 million of free cash and cash equivalents available for the development of Sal de Vida and its other growth projects.

This communication was authorized by Mr. Martín Pérez de Solay, CEO and General Manager of Allkem Limited.


This version of the ASX/TSX inverter (Release) has been prepared by Allkem Limited (ACN 112 589 910) (the Company either Allkem). It contains general information about the Company as of the date of this Communication. The information contained in this Communication should not be considered exhaustive or inclusive of all the material that a potential shareholder or investor in the Company may need to determine whether to deal in Allkem Shares. The information in this Communication is of a general nature only and is not intended to be complete. It should be read in conjunction with the Company’s periodic and ongoing disclosure announcements which are available on allkem.co and with the Australian Stock Exchange (asx) announcements, which are available at www.asx.com.au.

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Forward-looking statements
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Competent Person Statement
Any information in this announcement relating to Sal de Vida scientific or technical information, production targets, or anticipated financial information derived from a production target is taken from the ASX Announcement entitled “Sal de Vida Capacity Increased to 45ktpa in Two stages” published on April 4, 2022 which is available to view at www.allkem.co and www.asx.com.au. The Company confirms that all material assumptions underlying the scientific or technical information, production targets or forecast financial information derived from a production target in the original market announcement continue to apply and have not materially changed.

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