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

By Reuters News

** 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)

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