Dekeloil Public Limited Completion of Debt Refinancing on Improved Terms (8010N)
October 31 2016 - 2:00AM
UK Regulatory
TIDMDKL
RNS Number : 8010N
Dekeloil Public Limited
31 October 2016
DekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food
Producers
31 October 2016
DekelOil Public Limited ('DekelOil' or the 'Company')
Completion of Debt Refinancing on Improved Terms
DekelOil Public Limited, operator and 85.75% 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 secured to
help fund the construction of the Company's 60 t/hr extraction mill
('the Mill'), which is one of the largest in West Africa. This will
immediately result in a significant reduction in interest costs and
will have a positive impact on the Company's profitability.
-- New seven year EUR8.4 million unsecured loan with interest
payable at a rate of 6.85% completed with a syndicate of leading
regional financial institutions (the 'New Loan')
-- The New Loan was oversubscribed with the lead participants
being Ecobank Asset Management (and its affiliates) and Sogeburse
(and other affiliates of the Société Générale Group), in addition
to several other regional financial institutions and utility
companies
-- Replaces EUR7.6 million loan with interest payable at a rate
of 10.5% secured with West African Development Bank ('BOAD') with
remaining tenure of 3.5 years (the 'Old Loan')
-- Additional capital to be invested in on-going capital
improvements and expansion objectives which will be announced as
appropriate
-- The Directors believe that the reduced interest rate payable
will lead to a significant reduction in the annual interest costs
to the Company while the scheduling of debt payments over seven
years will also be of benefit
DekelOil Executive Director Lincoln Moore said, "Today's New
Loan will directly improve our profitability and will free up
additional cash flows either for reinvestment in the business as we
look to build DekelOil into a leading West African focused palm oil
producer or, when it is appropriate to do so, return capital to our
shareholders in the form of dividends.
"The New Loan marks the completion of our senior debt
refinancing on improved terms, which leaves us with a balance sheet
and corporate structure more befitting of the fully operational and
profitable palm oil producer which DekelOil has become. All our
original development loans have now been replaced with debt
facilities secured with leading regional institutions with
significantly reduced interest payments and longer repayment
profiles."
** ENDS **
For further information please visit the Company's website
www.dekeloil.com or contact:
DekelOil Public Limited
Youval Rasin
Shai Kol
Lincoln Moore +44 (0) 207 236 1177
Cantor Fitzgerald Europe (Nomad and
Broker)
Andrew Craig
Richard Salmond +44 (0) 207 894 7000
Beaufort Securities Limited (Broker)
Elliot Hance +44 (0) 207 382 8300
Optiva Securities Limited (Broker)
Christian Dennis
Jeremy King +44 (0) 203 137 1903
St Brides Partners Ltd (Investor Relations)
Elisabeth Cowell
Frank Buhagiar +44 (0) 207 236 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 85.75% 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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