Australia-based mining company OM Holdings has executed a $215m project financing facility agreement (FA) to secure funds for its Ferro Alloy Smelting project in Sarawak, Malaysia.

In addition, the company has also executed corresponding project support agreement (PSA) documents.

Through this agreement, the company will secure senior project finance debt facility of $250m along with additional MYR310m ($98.1m) for total capital cost and a credit line of MYR126m ($39.8m).

The capital costs amount will be used to the project’s phase 1 of ferrosilicon production facility, while the additional credit line is for the issuance of performance and payment guarantees to the power provider as part of company’s obligations under the Power Purchase Agreement.

Meanwhile, the lenders include Export-Import Bank of Malaysia Berhad, Maybank Investment Bank Berhad, RHB Bank Berhad and Standard Chartered Bank Malaysia Berhad.

In addition, OM stated, "Importantly, the PSA will lapse and the Project will become non-recourse 18 months after the satisfaction of pre-agreed project completion tests typical for a Project and project financing facility of this nature."

The project is reportedly supported by OM Sarawak’s stakeholders starting OM Materials and Samalaju Industries and its sponsors, OMH and Cahya Mata Sarawak Berhad as per the PSA.