Dekel Agri-Vision PLC Additional EUR900,000 Subscription to New Bond (9595M)
January 26 2021 - 10:17AM
UK Regulatory
TIDMDKL
RNS Number : 9595M
Dekel Agri-Vision PLC
26 January 2021
Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food
Producers
Dekel Agri-Vision Plc ('Dekel' or the 'Company')
Additional EUR900,000 Subscription to New Bond
Dekel Agri-Vision Plc, the West African focused agriculture
company, is pleased to announce that the recently issued first
tranche of its c.EUR15.2 million seven-year bond facility (the 'New
Bond') has been increased by c.EUR900,000 to approximately EUR5.9
million. This follows the acceptance by the Ivorian regulator of a
request to participate in the New Bond which was submitted by an
internationally-owned Ivorian bank around the closing date of the
issue. As announced on 19 January 2021, the New Bond forms part of
a long-term refinance programme to extend the maturity of the
Company's debt profile and facilitate the roll-out of Dekel's
strategy to become a multi-project, multi-commodity agriculture
company.
The New Bond includes an initial three-year capital repayment
holiday, during which time interest will be charged at an annual
rate of 7.75%. The three-year capital grace period enables a higher
proportion of operating cash flows generated from the Company's
producing palm oil project at Ayenouan in Cote d'Ivoire to be
retained and reinvested across Dekel's portfolio of agriculture
projects in West Africa. As previously disclosed, 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, including the additional c.EUR900,000
subscription, 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.
There are no further pending subscriptions for the New Bond. The
Company will consider the issue of further tranches of the New
Bond, as part of its ongoing debt refinancing programme and growth
strategy and while there are no immediate plans to issue further
bonds the Directors will monitor market conditions and may do so if
opportunistic circumstances arise.
Dekel Agri-Vision Plc Executive Director Lincoln Moore said:
"The prominent internationally-owned bank behind this latest bond
subscription joins a growing list of institutions, both regional
and global, that have become stakeholders in the Dekel story. This
is centred around building a West African focused multi-project,
multi-commodity agriculture company that benefits not just our
shareholders but also the communities in which we operate, the
local smallholders and farmers who supply us with feedstock for our
mills and the financial institutions which continue to support us.
With our cashew project at Tiebissou on course to become our second
producing asset in Q2 2021, this is an exciting period in Dekel's
story, and I look forward to providing further details on our
progress."
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.
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END
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