Dekeloil Public Limited Drawdown of Syndicated Loan (1573G)
28 February 2018 - 6:01PM
UK Regulatory
TIDMDKL
RNS Number : 1573G
Dekeloil Public Limited
28 February 2018
DekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food
Producers
28 February 2018
DekelOil Public Limited ('DekelOil' or the 'Company')
Drawdown of Syndicated Loan
DekelOil Public Limited, operator and 100% owner of the
vertically integrated Ayenouan palm oil project in Côte d'Ivoire,
is pleased to announce it has drawn down a second tranche of
EUR4.34 million ('the Second Tranche') from its EUR15.2 million
long term Syndicated Loan Facility with Sogebourse CI
('Sogebourse'), a subsidiary of Société Générale S.A., the French
multinational banking and financial services company. The EUR4.34
million proceeds of the Second Tranche will be used to refinance
the Company's remaining short term debt, resulting in a lower
effective borrowing rate, and potentially fund investment
opportunities in Côte d'Ivoire that are currently under
consideration.
-- New seven year EUR4.34 million unsecured loan with interest
payable at a rate of 6.85% completed with Sogebourse
o Follows signing of refinancing agreement with Sogebourse and
drawdown of first EUR8.4 million tranche (currently EUR6.8 million
outstanding) in Q4 2016 to refinance, on improved terms, a project
development loan (see announcement of 31 October 2016)
-- Approximately EUR2.0 million of the Second Tranche will be used to replace short-term loans
-- Remainder of the proceeds to fund one or more existing or
future projects within the Ivory Coast - approximately EUR1.5
million will be held on deposit attracting a current interest
return of 5% whilst investment opportunities are considered
-- Any surplus funds from the Second Tranche may be used to
refinance long term debt on improved terms, specifically to:
o repay a tranche of the seven-year EUR9.15 million (current
EUR7.1 million outstanding) NSIA Banque Cote D'Ivoire loan which
bears annual interest at an effective rate of 7.7% (7% nominal rate
plus 10% tax) - this tax is not applicable to the Sogebourse
loan
-- The Directors believe that the reduced interest rate payable
arising from the Second Tranche will reduce the Company's effective
borrowing rate
DekelOil Executive Director Lincoln Moore said, "We are pleased
to receive this support from the underlying lenders for the
drawdown of this tranche of the Sogebourse syndicated loan put in
place back in 2016. Any of the proceeds from this drawdown used to
refinance existing debt will decrease the effective borrowing rate.
The Board will also evaluate potentially deploying part of this
drawdown to fund projects within the palm oil sector or other high
value agricultural projects in the Ivory Coast, based upon our
strict evaluation criteria. With this in mind, I look forward to
providing further updates on the deployment of the Sogebourse loan
as and when it is appropriate to do so."
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the
publication of this announcement via a Regulatory Information
Service ("RIS"), this inside information is now considered to be in
the public domain.
** ENDS **
For further information please visit the Company's website or
contact:
DekelOil Public Limited
Youval Rasin
Shai Kol +44 (0) 207
Lincoln Moore 236 1177
Cantor Fitzgerald Europe
(Nomad and Broker)
Andrew Craig +44 (0) 207
Richard Salmond 894 7000
Beaufort Securities Limited
(Broker) +44 (0) 207
Elliot Hance 382 8300
Optiva Securities Limited
(Broker)
Christian Dennis +44 (0) 203
Jeremy King 137 1903
St Brides Partners Ltd (Investor
Relations)
Frank Buhagiar +44 (0) 207
Megan Dennison 236 1177
Notes:
DekelOil Public Limited is a low cost producer of palm oil in
West Africa, which it is focused on rapidly expanding. Feedstock
for the Mill comes from several co-operatives and thousands of
smallholders, however it also has nearly 1,900 hectares of its own
plantations. Furthermore, it has a world-class nursery with a one
million seedlings per year capacity.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCEAFAXASAPEAF
(END) Dow Jones Newswires
February 28, 2018 02:01 ET (07:01 GMT)
Dekel Agri-vision (LSE:DKL)
Historical Stock Chart
From Apr 2024 to May 2024
Dekel Agri-vision (LSE:DKL)
Historical Stock Chart
From May 2023 to May 2024