Business
Central Bank Approval For Proposed Debt Finance
Central Bank Approval For Proposed Debt Finance.
About this update from Kefi Gold And Copper Plc
[{"type":"text","content":"\n \n \n RNS Number : 3178N\n KEFI Minerals plc\n 19 May 2020\n \n \n \n \n 19 May 2020\n \n KEFI Minerals plc\n (\"KEFI\" or the \"Company\")\n \n Approval Received from National Bank of Ethiopia for Proposed Debt Finance\n Formal Registration of Initial Historic US$49 Million Spend\n KEFI Minerals PLC (\"KEFI\" or \"the Company\") is pleased to advise that the National Bank of Ethiopia, Ethiopia's central bank, has now approved the signed term sheets with the project finance banks who are expected to provide the long term development debt finance to the Company's Tulu Kapi Gold Project (the \"Project\" or \"Tulu Kapi\").\n This reaffirms the Government's ongoing support of the Company and its project finance plan for Tulu Kapi Gold Mines Share Company (\"TKGM\"), as set out in the Company's announcement of 2 December 2019. As previously stated, the two proposed senior debt underwriters and co-lenders are leading African banks and this approval will now trigger their normal processes for credit approval and documentation, with a view to full financial closure later this year in accordance with recent Company guidance.\n In addition, the Company has also received confirmation that the National Bank of Ethiopia has now registered the past investment in the Project of US$49 million in the period to 31 December 2014 by TKGM, which inherited the rights and obligations of the historical work and spending by KEFI Minerals (Ethiopia) Ltd, a wholly-owned subsidiary of KEFI. Subsequent pre-development investment will also be registered in due course, relating to expenditure during the period 2015-2019 in the lead-up to the recent commencement of Project development activities. This is important because this past investment ensures compliance with the 30%:70% (equity:debt) capital ratio as approved specifically for foreign direct investment into the Project.\n These central bank approvals are material to KEFI as they clear the way for full project finance completion, as do the various related and previously reported approvals by the central bank, which included the setting of the permissible capital ratio for the Project, permission for gold price hedging as and when required, and for the establishment and use of bank accounts in major international financial centres. Whilst these matters are convention...