Australia's Austal gains on bagging $171 mln in govt-backed funding for defense project

Austal

Yesterday 04:54

** Shares of Australia's Austal ASB.AX rise as much as 4% to A$4.350, hitting their highest level since October 6
** Shipbuilder secures A$245 million ($171.87 million) in debt funding from the Australian government's National Reconstruction Fund Corporation to support infrastructure development for its Landing Craft Heavy defense program 
** Co says funding will be used to build and fit out shipbuilding facilities at the Australian Marine Complex in Western Australia
** Adds the infrastructure is required to deliver its ~A$4 billion Landing Craft Heavy contract
** Adds funding costs will be paid by the Commonwealth of Australia under an existing shipbuilding agreement to minimise co's working capital requirements 
** ASB down 35.7% YTD

($1 = 1.4255 Australian dollars)

 (Reporting by Subhalakshmi Dey in Bengaluru)
 ((Subhalakshmi.Dey@thomsonreuters.com;))