Gunns loses financial backer for pulp projectThe Australian financial institution ANZ has confirmed that it has withdrawn as lead financier for Gunns' controversial AU$1.7 billion pulp mill scheme in northern Tasmania. "ANZ will not be participating in the provision of project finance for Gunns' proposed Bell Bay pulp mill in Tasmania.Due to client confidentiality, we are not in a position to comment further on this decision," the bank said in a statement last week. However, Gunns insisted that the project is on schedule, with strong international interest in financing the 1.1 million tonne/yr bleached softwood and hardwood kraft pulp plant. "Project financing for the mill is not dependent on ANZ participation in the banking syndicate," Gunns chairman John Gay said. "The company has a long-term and continuing corporate banking relationship with ANZ [and we are] proceeding to finalize the arrangement of finance facilities for the project," he added. Sources said talks to assemble a syndicate of several local and overseas banks were under way. ANZ, Gunns' banker for 22 years, was to provide up to AU$150 million for the scheme. ANZ's announcement follows speculation in recent weeks that it had decided to withdraw its financial backing of the controversial project. Source: RISI |
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