DekelOil completes refinancing

DekelOil, operator and 85.75% owner of the vertically integrated Ayenouan palm oil project in Cote d’Ivoire, has announced the refinancing, on improved terms, of a project development loan which was secured to help fund the construction of the company’s 60 t/hr extraction mill (‘the Mill’), which is one of the largest in West Africa.

This will immediately result in a significant reduction in interest costs and will have a positive impact on the Company’s profitability.

– New seven year €8.4 million unsecured loan with interest payable at a rate of 6.85% completed with a syndicate of leading regional financial institutions (‘new loan’)

– The new loan was oversubscribed with the lead participants being Ecobank Asset Management (and its affiliates) and Sogeburse (and other affiliates of the Société Générale Group), in addition to several other regional financial institutions and utility companies

– Replaces €7.6 million loan with interest payable at a rate of 10.5% secured with West African Development Bank (‘BOAD’) with remaining tenure of 3.5 years (the ‘old loan’)

– Additional capital to be invested in on-going capital improvements and expansion objectives which will be announced as appropriate

– The Directors believe that the reduced interest rate payable will lead to a significant reduction in the annual interest costs to the Company while the scheduling of debt payments over seven years will also be of benefit

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