Dekel Agri-Vision PLC Long-Term Debt Refinancing (0963M)
January 19 2021 - 1:00AM
UK Regulatory
TIDMDKL
RNS Number : 0963M
Dekel Agri-Vision PLC
19 January 2021
Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food
Producers
Dekel Agri-Vision Plc ('Dekel' or the 'Company')
Long-Term Debt Refinancing
Highlights
-- New c.EUR15.2 million bond facility, approved by the Ivorian
regulator, forms part of long-term refinance programme to extend
maturity of debt profile to strengthen the balance sheet and
facilitate the roll-out of Dekel's growth strategy to become a
multi-project, multi-commodity agriculture company
-- First approximately EUR5 million tranche of seven-year bond
issued to replace short term debt and provide funding support for
cashew project as it nears first production in Q2 2021
o Three-year capital grace period enables higher proportion of
operating cash flows to be retained and reinvested
-- Institutional subscribers to credit-rated bond include banks,
pension funds, and insurance companies across West African
region
Dekel Agri-Vision Plc, the West African focused agriculture
company, is pleased to announce the launch of a c.EUR15.2 million
seven-year bond facility (the 'New Bond'). A first tranche of the
bond, totalling approximately EUR5m, has been issued to regionally
focused institutions including banks, pension funds and insurance
companies. The New Bond is part of an ongoing programme to extend
the maturity of Dekel's debt profile and follows the EUR7.2
million, four-year capital holiday, 10-year loan facility secured
with AgDevCo Limited, a leading African agriculture sector impact
investor (see announcement of 22 July 2019 for further
details).
The New Bond includes an initial three-year capital repayment
holiday. During this period, the New Bond will be interest-only
chargeable at an annual rate of 7.75%. At the expiry of this
initial three-year period, the capital repayments of the first
tranche of the New Bond will be EUR1.25 million per annum during
years four to seven of the loan. Approximately EUR2.6 million of
the proceeds of the first tranche of the New Bond will go towards
replacing a short-term debt facility with the remainder of the
proceeds of the New Bond being used to provide a working capital
cushion for the cashew processing project in Tiebissou, Cote
d'Ivoire, which is expected to commence production in Q2 2021.
The Company will consider the issue of further tranches of the
New Bond as part of its ongoing debt refinancing programme and
expansion plans.
Dekel Agri-Vision Plc Executive Director Lincoln Moore said:
"The c.EUR15.2m New Bond facility represents an endorsement, from
both local and international institutions, of our collaborative
business model which places local smallholders and communities at
the centre of operations. Importantly, it also substantially
strengthens our funding platform for the growth plans we have in
place to transform Dekel into a West African focused multi-project,
multi-commodity agriculture company.
"This transformation will start with the Tiebissou cashew
project which, when operations commence in Q2 2021, will become
Dekel's second producing asset alongside our established palm oil
operations at Ayenouan. We will then look to expand processing
capacity at Tiebissou in stages so that within three years the
plant can process 30,000tn of raw cashews a year. At this point, we
expect to have added a third commodity to our portfolio following
the completion of an internal feasibility study last year.
"We anticipate that a portfolio of three producing projects
comprising palm oil at Ayenouan, cashews at Tiebissou and the third
crop could generate substantial and stable cash flow without the
volatility associated with having exposure to only a single
commodity. The Board believes this will not only allow Dekel to
either pay down debt or access lower cost financing to fund future
growth plans, but at the appropriate time, recommence a dividend
programme, thereby providing shareholders with a yield as well as
capital growth."
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. 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
www.dekelagrivision.com or contact:
Dekel Agri-Vision Plc
Youval Rasin
Shai Kol
Lincoln Moore +44 (0) 207 236 1177
Arden Partners Plc (Nomad and Joint Broker)
Paul Shackleton / Ruari McGirr /
Dan Gee-Summons (Corporate Finance)
Simon Johnson (Corporate Broking) +44 (0) 207 614 5900
Optiva Securities Limited (Joint Broker)
Christian Dennis
Jeremy King +44 (0) 203 137 1903
St Brides Partners Ltd (Investor Relations)
Frank Buhagiar
Cosima Akerman
Megan Dennison +44 (0) 207 236 1177
Notes:
Dekel Agri-Vision Plc is a multi-project, multi-commodity
agriculture company focused on West Africa. It has a portfolio of
projects in Côte d'Ivoire at various stages of development: a fully
operational palm oil project in Ayenouan where fruit produced by
local smallholders is processed at the Company's 60,000tpa crude
palm oil mill; a cashew processing project in Tiebissou, which is
due to commence production in Q2 2021.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCSFUESAEFSEDF
(END) Dow Jones Newswires
January 19, 2021 02:00 ET (07:00 GMT)
Dekel Agri-vision (LSE:DKL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Dekel Agri-vision (LSE:DKL)
Historical Stock Chart
From Apr 2023 to Apr 2024