IDT Australia Secures $20M Loan to Fuel Pharmaceutical Growth

Strategic Financing to Support Expansion

IDT Australia Limited (ASX: IDT), a pharmaceutical manufacturing company based in Boronia, Victoria, has announced the settlement of a new $20 million asset-based loan facility with Scottish Pacific Business Finance Pty Ltd (ScotPac). This financing replaces the company’s previous $4.7 million facility with National Australia Bank (NAB), marking a significant step in IDT's strategy to scale operations in response to growing market demand.

The new facility is designed to provide IDT with enhanced financial flexibility, enabling the company to capitalise on recent contract wins and a robust sales pipeline. The move underscores IDT’s commitment to expanding both domestically and internationally, leveraging its cGMP-compliant manufacturing capabilities and expertise in high potency pharmaceutical products.

Robust Revenue Growth Underpins Financing

IDT’s confidence in securing this larger facility is supported by its strong financial performance. The company reported a 91% year-on-year increase in operating revenue to $12.3 million for the full year 2024. Additionally, unaudited total revenue for the first half of 2025 rose 82% to $10.4 million compared to the same period last year. These figures highlight the company’s accelerating growth trajectory and its ability to convert contract wins into tangible revenue.

With this capital injection, IDT is positioned to further invest in production capacity and operational capabilities, potentially accelerating its market penetration and product development efforts.

Loan Terms and Security

The ScotPac facility is structured on standard commercial terms, featuring a 36-month initial term with the possibility of extension upon mutual agreement. The interest rate is set at 10.60% per annum, comprising ScotPac’s variable base rate of 8.35% plus a 2.25% margin. The loan is secured against a portfolio of IDT’s assets, including property, equipment, and receivables, reflecting the company’s tangible asset base and operational scale.

Key covenants include maintaining appropriate insurance over the secured assets and providing regular updates on statutory taxation obligations, ensuring transparency and compliance with regulatory requirements.

Outlook and Market Position

IDT’s enhanced financial position comes at a time when the pharmaceutical manufacturing sector is experiencing increased demand for high containment and high potency products. The company’s facilities, regularly audited by the US FDA and Australian TGA, position it well to meet stringent regulatory standards and attract international clients.

While the forward-looking statements caution that actual results may vary, the new financing facility equips IDT with the resources to pursue growth opportunities aggressively. The company’s ability to convert its sales pipeline into sustained revenue growth will be a key metric to watch in the coming quarters.