International Graphite has arranged approximately $1.5 million in non-dilutive finance with National Australia Bank to fund construction of its Collie graphite processing facility. The project remains targeted for production building completion in Q2 2027, but the funding adds future repayment obligations as the company moves closer to commissioning.
- Approximately $1.5 million in NAB construction finance
- Secured loan and overdraft facility arranged without issuing shares
- Interest capitalised during the initial two-year term
- Loan to amortise over 13 years after conversion
- Collie production building remains on track for Q2 2027 completion
NAB finance supports Collie construction
International Graphite Limited (ASX:IG6, FWB:H99) has added approximately $1.5 million of non-dilutive construction finance to keep its Collie Micronising Facility moving. The package from National Australia Bank comprises a secured business markets loan and an overdraft facility, with the loan earmarked for construction costs.
The arrangement gives IG6 another funding source without an immediate equity issue. It sits alongside existing equity commitments, forecast research and development funding receipts and money still available under the $4.5 million Financial Assistance Agreement with the Collie Investment and Transition Fund.
Two-year construction loan carries long repayment tail
The business markets loan has a two-year term, with interest capitalised during that period. At the end of the initial term, it will convert into an amortising loan over 13 years. The announcement does not disclose the precise interest rate, security package, financial covenants or the full construction budget, although IG6 said rates were typical for a facility of this nature.
That structure reduces the need for near-term cash interest payments while construction is under way, but it also creates a longer-term debt-servicing obligation. The company describes the funding as non-dilutive; it is not cost-free capital, and the eventual repayment profile will matter as Collie moves from construction into operations.
Collie remains targeted for Q2 2027 completion
Managing Director and Chief Executive Officer Andrew Worland said construction of the production building was advancing rapidly and remained on track for completion in Q2 2027. Collie is planned as IG6’s first global production facility, alongside a proposed facility at Porto Marghera in Italy, and is intended to establish the company in the Asia-Pacific market.
The immediate test is execution: whether the new debt can be drawn and converted into completed infrastructure on schedule, while the remaining equity, government assistance and R&D funding support the wider build. The filing confirms financing progress, but does not yet provide a commissioning date, production start date or updated operating forecast.
Bottom Line?
The NAB package strengthens Collie’s construction funding, but the next milestone is turning that financial support into a completed building without expanding the project’s funding requirements.
Questions in the middle?
- How much of the NAB facility will be drawn, and when?
- Will remaining equity, government assistance and R&D receipts cover the balance of Collie’s construction needs?
- Can the facility reach commissioning on schedule before the loan begins its longer amortisation phase?