Craven House Capital PLC $1,500,000 Convertible Loan to FMCD Ltd (2743L)
September 30 2016 - 2:01AM
UK Regulatory
TIDMCRV
RNS Number : 2743L
Craven House Capital PLC
30 September 2016
30 September 2016
Craven House Capital Plc
("Craven House" or the "Company")
$1,500,000 Convertible Loan to FMCD Ltd
The Company today announces that it has provided a $1,500,000
convertible loan (the "Loan") to FMCD Ltd ("FMCD"), a company
specialising in the import, distribution and sale of lubricants and
food products into Angola. The loan has a term of one year, and
carries an interest rate of 5%. Upon maturity, the loan will be
repaid, renewed or is convertible for up to 10% of the equity in
FMCD at the discretion of Craven House.
FMCD has distribution agreements in place with Chevron and
Caltex and its registered clients include Sonangol, Maersk
Drilling, Sonatide, Halliburton, Robert Hudson, PlusPetrol, Eni,
Chevron, Hercules, and KCA.
FMCD's geographic focus is on the Angolan enclave of Cabinda,
which benefits from some of the most productive oil fields in the
world. Hence there is significant demand for lubricants and food
products to support the upstream sector.
Mark Pajak, Acting Chairman, commented:
"We are very pleased to announce our first investment into
Angola with FMCD. FMCD have a well-established track-record in the
country; their management team have built an exceptional network of
relationships with the largest oil companies in the world.
Despite Angola's enormous oil production and reserves, the
country has suffered as a result of the recent collapse of the
global oil price. Capital controls and a growing current account
deficit have resulted in significant capital flight and a shortage
of trade finance facilities. This creates an enormous opportunity
for experienced companies like FMCD, who can leverage their
experience and footprint to become the supplier of choice. This
convertible loan will enable FMCD to increase its stock levels and
order-book while providing Craven House with the senior security in
the capital structure, an above market fixed current return and the
option to achieve equity like returns"
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information please contact:
Craven House Capital Plc Tel: 020 7002 1027
Mark Pajak
www.Cravenhousecapital.com
SPARK Advisory Partners Limited Tel: 020 3368 3550
Nominated Adviser
Matt Davis/Mark Brady
www.sparkadvisorypartners.com
SI Capital Tel: 01483 413500
Broker
Nick Emerson
www.sicapital.co.uk
About Craven House Capital
Craven House Capital is a frontier and emerging market focused
merchant bank seeking value oriented long term investments. Craven
House invests in all segments of the capital structure in
partnership with local entrepreneurs and the local business
community. Craven House provides long term patient capital and is
often involved in restructuring, expansion and turn around
investments in crisis and transitioning economies.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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