Finance Australia :: News
SHARE

Share this news item!

Austal's US$100 Million Boost: Strengthening US Shipbuilding Capabilities

Enhancing Austal's US Operations with Strategic Financial Support

Austal's US$100 Million Boost: Strengthening US Shipbuilding Capabilities?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Austal Limited, a prominent Australian shipbuilder, has secured a US$100 million loan facility from Export Finance Australia (EFA).
This funding is set to bolster Austal's construction of vessels for the US Navy and US Coast Guard at its Mobile, Alabama shipyard.

The loan agreement, executed in October 2025, is part of Austal's broader A$488 million refinancing package announced in June 2025. The funds will be utilized to support the development of Austal's Final Assembly 2 (FA2) project, a key component of the company's US expansion strategy.

The EFA loan facility, with a tenor of 10 years, reflects the long-term secured order book for ships to be built in the FA2 facility. This includes up to eleven US Coast Guard Offshore Patrol Cutters and up to seven US Navy Ocean Surveillance vessels (T-AGOS).

Paddy Gregg, CEO of Austal, emphasized the significance of this funding, stating that securing Australian Government support for US infrastructure expansion is a major milestone, enabling the company to execute on its $13.1 billion order book. He highlighted that the loan facilitates shared defense objectives between the Australian and US Governments and validates the strong relationship between both governments and Austal.

Minister for Trade and Tourism, Senator the Hon Don Farrell, underscored the government's commitment to backing Australian defense companies, noting that Austal's expansion demonstrates the strength of Australian businesses to export, invest, and support shared Australian-US priorities such as defense.

Austal continues to invest in its shipbuilding and submarine capabilities, with two major expansion projects currently underway in the USA: the FA2 project and the submarine Module Manufacturing Facility 3 (MMF3) project. The company is undertaking a significant capital expansion in the US, and the working capital funding established, comprising a combination of debt, equity, and cash flow, ensures that Austal can complete that expansion in a financially astute manner.

Published:Thursday, 11th Dec 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

MitchCap's Strategic Alliance with BIA and BIAV: A New Era for Australia's Marine Industry
MitchCap's Strategic Alliance with BIA and BIAV: A New Era for Australia's Marine Industry
11 Dec 2025: Paige Estritori
The Australian marine industry is set to benefit from a significant partnership between MitchCap, the Boating Industry Association (BIA), and the Boating Industry Association of Victoria (BIAV). This collaboration aims to enhance financial literacy and provide robust support to marine businesses across the nation. - read more
Austal's US$100 Million Boost: Strengthening US Shipbuilding Capabilities
Austal's US$100 Million Boost: Strengthening US Shipbuilding Capabilities
11 Dec 2025: Paige Estritori
Austal Limited, a prominent Australian shipbuilder, has secured a US$100 million loan facility from Export Finance Australia (EFA). This funding is set to bolster Austal's construction of vessels for the US Navy and US Coast Guard at its Mobile, Alabama shipyard. - read more
Navigating Towards Sustainability: Hybrid Propulsion in Australia's Marine Industry
Navigating Towards Sustainability: Hybrid Propulsion in Australia's Marine Industry
11 Dec 2025: Paige Estritori
The Australian marine industry is witnessing a significant shift towards sustainability, marked by the increasing adoption of hybrid propulsion systems and eco-friendly technologies. This trend reflects a global movement towards reducing emissions and promoting environmental stewardship within the boating community. - read more


Finance Articles

Understanding the Fine Print: Fees and Charges in Personal Loans
Understanding the Fine Print: Fees and Charges in Personal Loans
Personal loans are a type of unsecured credit that allows individuals to borrow money for various personal expenses, including consolidating debt, making home improvements, or funding significant life events. Unlike secured loans that require collateral, personal loans rely on your creditworthiness, making them an accessible option for many Australians. - read more
Maximizing Your Borrowing Power: Strategies for Home Loan Comparison
Maximizing Your Borrowing Power: Strategies for Home Loan Comparison
When you're on the journey to owning your dream home, securing the right home loan is as critical as choosing the perfect location. The benefits of using online home loan calculators can't be overstated, as they wield the power to illuminate the murky depths of mortgage rates, terms, and payments with surprising precision. - read more
The In-Depth Guide to Boat Loans in Australia: What You Need to Know Before Diving In
The In-Depth Guide to Boat Loans in Australia: What You Need to Know Before Diving In
Australia, with its expansive coastline and spectacular waterways, naturally cultivates a rich culture of marine enthusiasts. Imagine the salty breeze on your face as you slice through waves, the call of seabirds overhead, and the freedom to explore hidden coves and beaches – this is the quintessential Australian boating lifestyle. - read more


Free Loan Eligibility Assessment

Loan Amount:
Postcode:

All quotes are provided free and without obligation by a specialist from our national broker referral panel. See our privacy statement for more details.


Knowledgebase
Guarantor:
A party who agrees to be responsible for the payment of another party's debts should the original party fail to pay or perform according to a contract.