Key Highlights

  • Pacific Lime and Cement (ASX:PLA) has received firm commitments for an A$50 million Placement at A$0.36 per CDI, before costs.
  • A non-binding term sheet has been executed for a proposed US$15 million senior unsecured convertible note from the US International Development Finance Corporation.
  • The company expects Debt Financing for future project-level facilities of up to US$400 million, a figure it describes as indicative.
  • Final Investment decisions for the international port expansion and the Central Cement Project are both targeted for Q1 CY2027.

Pacific Lime and Cement Limited (ASX:PLA) announced on 9 November 2026 that it has secured A$50 million of institutional commitments and executed a term sheet with the US International Development Finance Corporation (DFC). The funds are directed to its industrial growth platform at Kido and Rearea in Papua New Guinea, which includes lime, cement and port facilities.

Placement Details and Use of Funds

The placement will issue 138,888,889 CDIs, representing about 14.9% of existing shares on issue. The issue price of A$0.36 represents a 5.3% discount to the last closing price and a 3.6% discount to the five-day VWAP to 4 November 2026. Petra Capital acted as lead manager.

Of the A$50 million, the company plans to allocate A$27.0 million (54%) to SEZ precinct and port expansion development, A$10.0 million (20%) to Central Cement Project early works and pre-FID costs, and A$10.8 million (21.6%) to corporate costs, DFC transaction work and working capital. Offer costs are estimated at A$2.2 million.

Terms of the DFC Convertible Note

The proposed US$15 million note has an eight-year tenor and pays 8% a year, which can be paid in cash or capitalised. The conversion price is A$0.42 per CDI, a 15% premium to the 20-day VWAP to 4 November 2026. Conversion is capped so that DFC cannot exceed 29.99% of the company’s issued equity.

The note would give DFC a right of first refusal over future project financing for the lime, cement and port facilities. The term sheet is non-binding, subject to due diligence, definitive documentation and DFC approvals, and the company has granted DFC a 60-day exclusivity period.

Timelines and Funding Dependence

First lime production at the Central Lime Project is targeted for late Q1 to Q2 CY2027, and pre-construction work on the Central Cement Project is scheduled to begin this quarter. The company describes the Special Economic Zone as covering about 4,500 hectares of registered tenure, with fiscal incentives for qualifying businesses.

The release is clear that DFC has made no commitment to provide project financing, and that any future financing remains subject to environmental and social assessments, a 60-day disclosure period and separate investment decisions. The company’s financing plans are therefore still dependent on approvals and negotiations that have not concluded.

Final Word

The raising gives Pacific Lime and Cement capital to advance a large and staged industrial program, and the DFC term sheet points to interest from development finance institutions. Yet the note is not yet binding, and the larger project financing has not been agreed. Delivery of the lime plant and the decisions on the cement project and port will determine how much of the plan moves forward on the current timetable.