Dekel Agri-Vision PLC Final Bond Facility Drawdown on Improved Terms (4536T)
July 25 2022 - 2:00AM
UK Regulatory
TIDMDKL
RNS Number : 4536T
Dekel Agri-Vision PLC
25 July 2022
Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food
Producers
25 July 2022
Dekel Agri-Vision Plc ('Dekel' or the 'Company')
Final Bond Facility Drawdown on Improved Terms
Dekel Agri-Vision Plc (AIM: DKL), the West African focused
agriculture company focused on building a portfolio of sustainable
and diversified projects, is pleased to confirm the completion of
an oversubscribed final drawdown of approximately EUR9.2 million
from the approximately EUR15.2 million seven-year bond facility
previously announced on 19 and 26 January 2021.
The final drawdown has a fixed interest rate of 7.25% which is
50 basis points lower than the first drawdown, resulting from the
strong financial performance in 2021 and promising outlook of the
Company. We believe this is particularly positive when set against
the backdrop of rising global interest rates. The repayment terms
mirror the first drawdown and include an initial three-year capital
repayment holiday. At the expiry of this initial three-year period,
the capital repayments of the final bond drawdown will be
approximately EUR2.3 million per annum during years four to seven
of the loan.
The proceeds of the final bond drawdown will largely be used to
refinance existing debt facilities with higher interest rates. We
are currently in discussions with these debt providers and we will
provide further updates as appropriate in the best interests of the
Company and its shareholders.
Lincoln Moore, Dekel 's Executive Director, said: " The final
oversubscribed drawdown from our bond facility priced 50 basis
points lower than the previous drawdown is a strong endorsement
from both local and international institutions, particularly at a
time where global debt interest rates have risen considerably
recently. Importantly, it also strengthens our funding platform as
we enter a period of expected material operating and financial
growth, particularly associated with the ramp-up of production from
our Tiebissou Cashew Processing Plant as detailed in our monthly
operating updates.
"Our two to three year strategy remains unchanged in terms of
utilising the principal grace periods of the bond facility to
ensure we are well funded internally while we build our cash base
from the material uplift in operating cash flow expected as the
Palm Oil Operation and Cashew Operation work in tandem. Dekel will
then have optionality to either pay down debt or access lower cost
financing to fund future growth plans and, at the appropriate time,
look to recommence a dividend programme, thereby providing
shareholders with a yield as well as capital growth."
This announcement contains inside information for the purposes
of Article 7 of the UK version of Regulation (EU) No 596/2014 which
is part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended ("MAR"). Upon the publication of this announcement
via a Regulatory Information Service, 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
WH Ireland Ltd (Nomad and Joint Broker)
James Joyce / Ben Good +44 (0) 20 7220 1666
Optiva Securities Limited (Joint Broker)
Christian Dennis / Daniel Ingram +44 (0) 203 137 1903
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 capacity
crude palm oil mill and a cashew processing project in Tiebissou,
which commenced production in early January 2021.
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END
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