13/04/2012 (Proactive Investors UK) - Liberia-focused Equatorial Palm Oil (LON:PAL) said today its US$10 million loan to Geoff Palm Ltd had been repaid in full.

The company also received accrued interest of US$250,684.93 and the arrangement fee of USD$100,000, it said in a statement.

As reported in October last year, the company's subsidiary, Liberian Palm Developments, agreed the loan facility with two firms connected to India’s Siva Group in a deal that would see the company gain exposure to a major palm oil project in Papua New Guinea.

Following these repayments, no more liabilities exist between the parties, Equatorial said today.

Geoff Palm and Broadcourt Investments are related to the Siva-owned BioPalm Energy – which itself has a 26.7 per cent shareholding in Equatorial Palm Oil as well as a joint venture agreement with Equatorial’s subsidiary, Equatorial Biofuels.

Geoff Palm has a large scale oil palm project in Papua New Guinea – an established palm oil-producing country – where it has signed long-term leases with the country’s government.

The projects cover an area of 110,000 hectares, with 89,000 hectares suitable for the cultivation of oil palm.

Last year, the firm said that, in addition to the potential long-term strategic benefit of strengthening its relationship with BioPalm Energy, and the wider Siva Group, the loan agreement provided it with an opportunity to generate a competitive rate of return on cash funds held and also with exposure to a major oil palm project outside of West Africa.

As at 1.22pm, shares in the company were up 0.85 per cent, to change hands at 14.75 pence each.