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Austal Limited (ASX: ASB) has announced the signing of a USD 100 million loan agreement with Export Finance Australia (EFA), the Australian Government’s export credit agency, to strengthen vessel construction for the U.S. Navy and U.S. Coast Guard at its Mobile, Alabama shipyard, Austal USA.
The EFA loan, which supports the development of Austal USA’s Final Assembly 2 (FA2) project, had previously received credit approval as part of Austal’s AUD 488 million refinancing package disclosed in June 2025. With financing documentation now finalized, and subject to the fulfillment of certain conditions precedent, Austal will deploy the funds to advance the FA2 construction phase.
The loan carries a 10-year term, aligning with Austal’s long-term order commitments for vessels to be produced at the FA2 facility, including up to eleven U.S. Coast Guard Offshore Patrol Cutters and as many as seven U.S. Navy Ocean Surveillance (T-AGOS) ships.
Austal CEO Paddy Gregg described the funding as a “major milestone” for the company, emphasizing its strategic importance. “Securing Australian Government funding for our U.S. infrastructure expansion enables Austal to deliver on its $13.1 billion order book,” Gregg said. “It also reinforces the shared defense goals between Australia and the United States, and highlights the strong partnership between both governments and Austal, following the recent strategic shipbuilding agreement with the Australian Government.”
Australia’s Minister for Trade and Tourism, Senator the Hon Don Farrell, praised the deal as a demonstration of national capability and international cooperation. “The Albanese Government is backing Australian defense companies to expand globally and secure major international contracts,” Farrell said. “Austal’s U.S. expansion reflects the strength and competitiveness of Australian businesses in supporting shared defense priorities with the United States.”
Austal continues to scale up its defense manufacturing capacity, with two major U.S. projects underway — the FA2 facility and the new Module Manufacturing Facility 3 (MMF3) for submarine components.
“Austal is executing a substantial capital expansion program in the United States,” Gregg added. “Through a prudent mix of debt, equity, and operational cash flow, we’ve established the financial foundation to complete this growth in a disciplined and sustainable way.”
