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Silex (UK) has become one of the first companies outside of Cyprus to list a bond on the Cyprus Stock Exchange (CSE), offering investor opportunities in the lucrative olive oil sector in southern Spain.
Recognised by HMRC, the CSE allows private or public companies to list their bonds on the Emerging Companies Market (ECM).
Silex S.L, the Spanish subsidiary of Silex (UK), is an olive oil refinery based in Jaen, southern Spain. With over 60M olive trees in 550,000 hectares, Jaen alone produces 20% of the world’s olive oil supply.
The main activity of Silex S.L is the refining and bottling of olive oil on behalf of major European retailers and also providing storage services on behalf of local crushers. The olive oil will be produced to the buyer’s specification and labelled as ‘own brand.’
The Company, which has been independently assessed by key corporate advisors, KPMG, is seeking to raise capital through the issue of a 5 year 8% corporate fixed-rate, fully tradable bond maturing in 2020. The Company’s core investment strategy is to invest the proceeds of the 2020 bonds into the further development of the refinery, including further modernisation and enhanced energy efficiency.
The proceeds of the bonds will also be used for future acquisitions that have been identified.
Olive oil consumption has increased by 183% over the last two decades according to the International Olive Oil Council with further increases expected and the Directors of Silex UK are confident there will continue to be growth in demand for the product.
Says William Redford, Chief Executive of Silex (UK) Plc: “We are proud to be one of the first UK companies to list a bond on the Cyprus Stock Exchange. As Spain moves out of recession, this is a great opportunity to invest in the olive oil sector, which is an emerging world market.”
