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WSI receives approval for $7.5M Export Finance Australia Bond Facility, Strengthens Balance Sheet

WestStar Industrial Limited (Company or WestStar) (ASX: WSI), an Australian industrial services company, operating in the energy, resources, utility and infrastructure sectors, in metropolitan and remote areas, is pleased to announce the Group has entered into ~$7.5 million bond facilities (“the Facilities”) with Export Finance Australia.

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Media release

ASX announcement 

8 December 2021


Export Finance Australia Bond Facility

  • Export Finance Australia approves ~$7.5M Bond Facility following due diligence.
  • Export Finance Australia bonds are Australian government-backed and rated AAA by Standard & Poor’s (S&P).
  • Provides bonding to support certain current works under contract of ~$222M, along with releasing significant cash to Westar’s Balance Sheet, currently held on account by clients of ~$5M. This $5M is in addition to the September Quarterly cash balance of $15.2M and the recently completed $3.5M capital raise.

Strengthened Balance Sheet

  • Company has also elected to extinguish its remaining $300k debt facility.
  • $3.5M raised from recent Placement will contribute to working capital, future tendering and contracting activities with order book expected to increase further this quarter.
  • WestStar Group has the ability to seek additional Export Finance Australia bonds to allow further repatriation of cash currently held as cash backed bonded guarantees with clients.
  • WestStar is now in its strongest ever balance sheet position, fully funded to execute on its ~$222m order book. The board's primary focus is now on delivering profitability across its business divisions and tendering and winning new contracts.

WestStar Industrial Limited (Company or WestStar) (ASX: WSI), an Australian industrial services company, operating in the energy, resources, utility and infrastructure sectors, in metropolitan and remote areas, is pleased to announce the Group has entered into ~$7.5 million bond facilities (“the Facilities”) with Export Finance Australia.

Under the Facilities, Export Finance Australia will provide bonding to be used across a selection of WSI’s current projects which have a current contract value of approx. $222 million, along with releasing significant cash to the Balance Sheet held on account by clients of circa $5 million.

Export Finance Australia is Australia’s export credit agency, wholly owned by the Australian Government and provides financial expertise and solutions to drive sustainable growth via these bonds to SME enterprises, larger corporations and government organisations.

Managing Director and CEO of Export Finance Australia Swati Dave said the announcement demonstrates Western Australia’s mining services sector is strong and powering the state’s economy.

“Export Finance Australia’s support for SMEs and businesses in the critical minerals supply chain is helping them expand, pivot and grow,” Ms Dave said.

“Our strong relationship with WestStar Industrial and our support has helped them pursue new opportunities in the mining services market. This year we’ve issued more than $13 million in bonds to six customers in Western Australia.”

Export Finance Australia is rated AAA by Standard & Poor’s (S&P).

WestStar CEO and Managing Director Robert Spadanuda commented:

“To have received the backing of Export Finance Australia who will provide bonding for a selection of WSI’s current works under contract of ~$222M, is a significant third-party endorsement of the WestStar Industrial business.

“The fact that these facilities undergo significant third-party audit and compliance suggests that WSI has been assessed on the strength of its balance sheet, contracts, net equity position, projected cashflows and current project status, by external parties who have satisfied themselves of WSI’s compliance with regulatory assessment.

“We look forward to a continued relationship with Export Finance Australia into the future to support this exciting growth phase that the business has entered.”

In addition, the Company continues to achieve significant milestones in demonstrating its ability to rapidly deliver its accelerating order book.

WestStar has now secured a record-breaking $222 million of contracted revenue with existing contracts. These contracts predominantly consist of:

  • Iron Bridge Magnetite Project circa $145M
  • Lynas Rotary Kiln circa $12M
  • Acciona Waste to Energy circa $10M
  • Ambania Compressor Station circa $25M
  • Various Contracts $30M

Additionally, the future order book pipeline is strong, with tendering and negotiations expected to yield more contract awards in the near future. A well-balanced portion of all submissions are from both repeat and new clients within the resources, petrochemical, mining, infrastructure and oil and gas sectors.

The $3.5 million raised from the recent Placement to institutional and sophisticated investors also provides WestStar with the ability to fund future activities and order book increase across its wholly owned subsidiaries SIMPEC and Alltype Engineering.

Mr Spadanuda further noted:

“The Company continues to demonstrate its ability to responsibly manage its working capital requirements and satisfactorily support current orderbook, whilst managing cash reserves to fund future growth and order book opportunities. The Company is in a strong position heading toward the end of the calendar year evidencing record cash receipts and a record cash balance enabling the sustainable growth and profitability across the business.

“The repayment of $300,000 remaining on our debt facility, which was previously issued to support WestStar’s working capital management, is particularly satisfying and positions WestStar Industrial with no debt. The EFA facilities will imminently release a further $5M in cash, a direct increase to our already significant cash balance to progress our future activities across the SIMPEC and Alltype businesses.

We look forward to updating the market this current quarter on additional project work, whilst continuing to deliver strong operational progress and outcomes for our clients. Our organisation is gathering momentum and is on track to deliver record receipts for the December quarter.”


For further information please contact:

Philip Re

Robert Spadanuda
WestStar CEO and Managing Director

David Tasker
Chapter One Advisors
M: +61 433 112 936

About WestStar

WestStar Industrial Limited (ASX: WSI) is an industrial, steel fabrication, installation and maintenance services company focussed on the resources, oil and gas, water and infrastructure sectors.


SIMPEC delivers high quality construction and engineering services with specialisation in structural mechanical and piping (SMP), electrical and instrumentation (E&I), concrete products and civil Services.

For more information:

About Alltype

Engineering Alltype Engineering leverages off its fabrication capability and provides complete project solutions including SMP and E&I site installation, construction and maintenance services, across almost every industry in Australia. Alltype’s products and services have been delivered and installed state-wide, nationally and internationally through our workshops and sites and can be found on land, offshore on islands, FPSO’s and platforms, below ground and even subsea. Supported by its team of experienced multi-disciplinary project personnel, Alltype delivers consistent quality products and services that underpin its commitment to its vision “to be recognised as the preferred partner in delivering integrated fabrication, site and maintenance services with reliable, innovative and cost-effective solutions”.

For more information:

ASX release authorised by the Board of Directors of WestStar Industrial Limited.

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