Business
Loan of up to US$30.0m for Joint Venture Company
Loan of up to US$30.0m for Joint Venture Company.
About this update from Capital Metals Plc
[{"type":"text","content":"\n \nRNS Number : 8364I Equatorial Palm Oil plc 05 September 2016 \n\n5 September 2016\n \nEQUATORIAL PALM OIL plc\n(\"EPO\" or the \"Company\") \n \nLoan of up to US$30.0m for Joint Venture Company\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 for the loan of up to US$30m 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 fund the construction of the new 60 metric tonne (\"MT\") palm oil mill to be built on Palm Bay estate.\n \nThe key terms of the Loan, which is unsecured, are as follows:\n· Amount - up to US$30m\n· Term - 2 September 2016 to 25 January 2020 (the \"Term\")\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 or such earlier date as LPD may decide\n \nThe Loan is in addition and on predominantly the same terms as the Loan of US$20.5m announced on 27 January 2015, which has now been fully drawn down and remains outstanding, falling due on 25 January 2020. The Loan can be drawn down by LPD in line with its operational funding requirements and subject to the consent of the KLK Agro.\n \nGeoffrey Brown, Executive Director of EPO, commented:\n\"We are very pleased that LPD has now secured this $30.0m loan with KLK Agro for the development of our oil palm estates in Liberia. This funding will drive our operations into production in 2018 and fund the building and commissioning of a new 60MT palm oil mill at Palm Bay. The recently sig...