Business
Drawdown of Syndicated Loan
Drawdown of Syndicated Loan.
About this update from Dekel Agri-vision Plc
[{"type":"text","content":"\n \nRNS Number : 1573G Dekeloil Public Limited 28 February 2018 \n\n \nDekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food Producers\n28 February 2018\nDekelOil Public Limited ('DekelOil' or the 'Company')\nDrawdown of Syndicated Loan\n \nDekelOil Public Limited, operator and 100% owner of the vertically integrated Ayenouan palm oil project in Côte d'Ivoire, is pleased to announce it has drawn down a second tranche of €4.34 million ('the Second Tranche') from its €15.2 million long term Syndicated Loan Facility with Sogebourse CI ('Sogebourse'), a subsidiary of Société Générale S.A., the French multinational banking and financial services company. The €4.34 million proceeds of the Second Tranche will be used to refinance the Company's remaining short term debt, resulting in a lower effective borrowing rate, and potentially fund investment opportunities in Côte d'Ivoire that are currently under consideration. \n \n· New seven year €4.34 million unsecured loan with interest payable at a rate of 6.85% completed with Sogebourse \no Follows signing of refinancing agreement with Sogebourse and drawdown of first €8.4 million tranche (currently €6.8 million outstanding) in Q4 2016 to refinance, on improved terms, a project development loan (see announcement of 31 October 2016)\n· Approximately €2.0 million of the Second Tranche will be used to replace short-term loans \n· Remainder of the proceeds to fund one or more existing or future projects within the Ivory Coast - approximately €1.5 million will be held on deposit attracting a current interest return of 5% whilst investment opportunities are considered\n· Any surplus funds from the Second Tranche may be used to refinance long term debt on improved terms, specifically to:\no repay a tranche of the seven-year €9.15 million (current €7.1 million outstanding) NSIA Banque Cote D'Ivoire loan which bears annual interest at an effective rate of 7.7% (7% nominal rate plus 10% tax) - this tax is not applicable to the Sogebourse loan\n· The Directors believe that the reduced interest rate payable arising from the Second Tranche will reduce the Company's effective borrowing rate\n \nDekelOil Executive Director Lincoln Moore said, \"We are pleased to recei...