WATPAC SECURES ENHANCED BANK GUARANTEE FACILITY

WATPAC Limited (ASX: WTP) has secured an increase in its bank guarantee facility to $100 million, better equipping the company for a construction pickup.

The additional $20 million facility is a 25 per cent increase on WTP’s previous facility limited of $80 million and will form part of WTP’s syndicated banking arrangements with ANZ, HSBC, BNP Paribas and Bank of Queensland.

Managing director Martin Monro (pictured) says the expansion is all part of the company’s long-term operational plans.

“We have substantial capacity to grow our workbook across all of the group’s business operations and regions, particularly in contracting, and this enhanced banking arrangement is an endorsement of our efforts to continue to deliver quality outcomes for our clients,” says Monro.

“With almost $2 billion of work in hand across the company’s contracting businesses, the facility will allow Watpac to continue to pursue new project opportunities across the country.”

WTP CFO Mark Baker says the timing of the announcement is testament to the company’s financial strength.

“This facility increase amends the existing three year syndicated banking arrangement finalised in May this year, which also includes a $25 million revolving credit facility,” says Baker.

“Achieving this enhanced limit so soon after reaching financial close on our new syndicated facility is a testament to our keen focus on financial strength and improving shareholder returns.”

WTP is currently delivering a range of projects across Australia including the $114 million Southpoint Office Tower in Brisbane and the $47 million stage one of the new Mater Private Hospital in Springfield.