Dekeloil Public Limited Debt Refinancing Improves Profitability (2012S)
16 March 2016 - 6:00PM
UK Regulatory
TIDMDKL
RNS Number : 2012S
Dekeloil Public Limited
16 March 2016
DekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food
Producers
16 March 2016
DekelOil Public Limited ('DekelOil' or the 'Company')
Debt Refinancing Significantly Improves Profitability of Palm
Oil Project
DekelOil Public Limited, operator and 51% owner of the
vertically integrated Ayenouan palm oil project in Côte d'Ivoire
(the "Project"), is pleased to announce the refinancing, on
improved terms, of a project development loan which was used to
assist in funding the construction of the Company's 60 t/hr
extraction Mill ("the Mill"), one of West Africa's largest. The
refinancing results in a significant reduction in interest costs
and will therefore have a positive impact on the Company's
profitability in 2016 and beyond.
The new improved terms secured are testament to DekelOil's
transformation into a fully operational palm oil company, which
successfully produced 35,770 tonnes of Crude Palm Oil ("CPO")
during the year ended 31 December 2015.
-- New seven year EUR9.15 million loan with interest payable at
a rate of 7% secured with NSIA Banque Cote D'Ivoire (the "New
Loan")
-- Replaces EUR8.69 million loan with interest payable at a rate
of 10.5% secured with BIDC-EBID (ECOWAS Bank of Investment and
Development) with remaining tenure of four years (the "Old
Loan")
-- Approximately EUR270,000 reduction in annual interest costs
as a result of New Loan's lower interest rate of 7% - improves
profitability
-- Approximately EUR600,000 reduction in capital repayments in
2016 and EUR800,000 reduction in capital repayments in 2017 as a
result of the increased tenure of the New Loan facility provides
further free cash flow for both ongoing operational and corporate
objectives
-- Discussions advanced with lenders to improve the terms of the
Company's outstanding development loan of EUR6.76 million
DekelOil Executive Director Lincoln Moore said, "The refinancing
of this loan on such improved terms provides third party validation
of how far DekelOil has come operationally in a short space of
time. Having produced 35,770 tonnes of CPO in 2015, our first full
year of production, DekelOil has rapidly become a major CPO
producer in Cote d'Ivoire. With the Project significantly
de-risked, we are now focused on ensuring the excellent progress
made on the ground is fully reflected in our corporate structure
and financing arrangements, the majority of which were secured to
fund the construction of the Mill. Today's refinancing ought to be
seen in this context and I look forward to providing updates
regarding the securement of improved terms for our remaining debt,
where discussions are at an advanced stage.
"2016 is shaping up to be another excellent year of progress for
DekelOil. In addition to significantly lower interest costs
following today's refinancing and also the cancellation of a EUR5.1
million capital note in December 2015, we expect a further increase
in CPO production and a ramp up in the production of Palm Kernel
Oil and Palm Kernel Cake at our Kernel Crushing Plant. We are
focused on maximising the highly cash generative potential of our
vertically integrated project at Ayenouan, and in the process build
a strong platform from which to transform DekelOil into a leading
West African focused palm oil company. We are in the middle of the
key harvesting season at present and will provide a quarterly
production update in early April."
** ENDS **
For further information please visit the Company's website
www.dekeloil.com or contact:
DekelOil Public Limited
Youval Rasin
Shai Kol +44 (0) 207
Lincoln Moore 236 1177
Cantor Fitzgerald Europe
(Nomad and Broker)
Andrew Craig
Richard Salmond +44 (0) 207
Chris Viggor 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)
Elisabeth Cowell +44 (0) 207
Frank Buhagiar 236 1177
Notes:
DekelOil Public Limited is a low cost producer of palm oil in
West Africa, which it is focused on rapidly expanding. To this end,
it has a 51% interest in one of the largest oil processing mills
based in Côte d'Ivoire, which has a capacity of 70,000 tons of CPO.
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 1 million seedlings a year capacity.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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March 16, 2016 03:00 ET (07:00 GMT)