Business
Debt Refinancing Improves Profitability
Debt Refinancing Improves Profitability.
About this update from Dekel Agri-vision Plc
[{"type":"text","content":"\n \nRNS Number : 2012S Dekeloil Public Limited 16 March 2016 \n\n \nDekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food Producers\n16 March 2016\nDekelOil Public Limited ('DekelOil' or the 'Company')\nDebt Refinancing Significantly Improves Profitability of Palm Oil Project \n \nDekelOil Public Limited, operator and 51% owner of the vertically integrated Ayenouan palm oil project in Côte d'Ivoire (the \"Project\"), is pleased to announce the refinancing, on improved terms, of a project development loan which was used to assist in funding the construction of the Company's 60 t/hr extraction Mill (\"the Mill\"), one of West Africa's largest. The refinancing results in a significant reduction in interest costs and will therefore have a positive impact on the Company's profitability in 2016 and beyond. \n \nThe new improved terms secured are testament to DekelOil's transformation into a fully operational palm oil company, which successfully produced 35,770 tonnes of Crude Palm Oil (\"CPO\") during the year ended 31 December 2015.\n \n· New seven year €9.15 million loan with interest payable at a rate of 7% secured with NSIA Banque Cote D'Ivoire (the \"New Loan\")\n· Replaces €8.69 million loan with interest payable at a rate of 10.5% secured with BIDC-EBID (ECOWAS Bank of Investment and Development) with remaining tenure of four years (the \"Old Loan\")\n· Approximately €270,000 reduction in annual interest costs as a result of New Loan's lower interest rate of 7% - improves profitability\n· Approximately €600,000 reduction in capital repayments in 2016 and €800,000 reduction in capital repayments in 2017 as a result of the increased tenure of the New Loan facility provides further free cash flow for both ongoing operational and corporate objectives\n· Discussions advanced with lenders to improve the terms of the Company's outstanding development loan of €6.76 million\n \nDekelOil Executive Director Lincoln Moore said, \"The refinancing of this loan on such improved terms provides third party validation of how far DekelOil has come operationally in a short space of time. Having produced 35,770 tonnes of CPO in 2015, our first full year of production, DekelOil has rapidly become a maj...