Australian banks are set for a lending boost as Prime Minister Tony Abbott champions ventures to revitalize the economy, accelerating some of the more than A$80 billion ($72 billion) of infrastructure projects.
The board of the U.S. Export-Import Bank, an independent federal lending agency, gave preliminary approval for $694 million in financing for billionaire Gina Rinehart’s Roy Hill iron ore project in Australia.
John Leahy, chief operating officer at Airbus SAS, spoke yesterday about the outlook for global aircraft demand. The world’s largest maker of commercial aircraft said airlines will buy 25,000 planes worth $3.1 trillion over the next 20 years, buoyed by Asian sales and increased demand for single-aisle models. The forecast is 3 percent higher than the 24,300-aircraft, 20- year requirement predicted by Toulouse, France-based Airbus in February 2008. Laurent Rouaud, senior vice president of market and product strategy, and Stefan Schaffrath, head of media relations, also spoke at the news conference in London.
Australia’s four largest banks are expected to bid to join the A$7 billion ($6.5 billion) financing of Gina Rinehart’s Roy Hill mine development by today’s deadline, four people familiar with the matter said.
Middle Eastern and North African companies planning $740 billion in energy projects will need to tap foreign export credit agencies and local banks as commercial lending to the industry slumps to a nine-year low.
Roy Hill Holdings Pty, Australian billionaire Gina Rinehart’s unit that’s seeking to raise A$7 billion ($7.3 billion) in debt to build an iron ore mine, said it expects to complete funding by the end of the year.
Santos Ltd., the Australian energy company building the $16 billion Gladstone liquefied natural gas project in Queensland state, obtained $1.2 billion in debt facilities backed by three government export credit agencies.