Business
Loan of up to $20.0m for Joint Venture Company
Loan of up to $20.0m for Joint Venture Company.
About this update from Capital Metals Plc
[{"type":"text","content":"\n \nRNS Number : 5414Z Equatorial Palm Oil plc 20 May 2019 \n\n20 May 2019\n \nEQUATORIAL PALM OIL plc\n(\"EPO\" or the \"Company\") \n \n \nLoan of up to $20.0m for Joint Venture Company\n \n \nEquatorial Palm Oil plc (AIM: PAL), the AIM listed palm oil development and production company with operations in Liberia, West Africa announces today its 50 per cent. owned joint venture company, Liberian Palm Developments Limited (\"LPD\"), has entered into a loan agreement of up to $20.0m (\"Loan Agreement\") with KLK Agro Plantations Pte Ltd (\"KLK Agro\"), a wholly owned subsidiary of Kuala Lumpur Kepong Berhad (\"KLK\"), for the operations and funding for LPD (the \"Loan\").\n \nThe Loan will be used to continue with the next phase of growth of LPD and the key terms of the Loan are as follows:\n· Amount - up to $20.0m which is unsecured\n· Term - 5 years from the date of the Loan Agreement, being 19 May 2019\n· Interest - 3-months USD LIBOR + 5 per cent per annum\n· Repayment - Loan principal (together with all accrued Interest due) on expiry of the Term \n \nThe Loan is in addition to, and on the same terms as, the loans of US$20.5m, US$30.0m and US$30.0m provided by KLK Agro, announced on 27 January 2015, 5 September 2016 and 12 October 2017 respectively (the \"Existing Loans\"), save for the date of maturity being 19 May 2024. The Existing Loans, which have now been fully drawn down and remain outstanding, fall due on 25 January 2020 save for the loan as announced on 12 October 2017 which falls due on 10 October 2022. The Loan can be drawn down by LPD in line with its operational funding requirements and subject to the consent of KLK Agro. The Company is in ongoing discussions with KLK regarding the Existing Loans which mature in January 2020. \n \n \nRelated Party Transaction\nKLK (through its wholly owned subsidiary KL-Kepong International Limited) cur...