MARKET DEVELOPMENT
DekelOil PLC Making More Progress on Debt Refinancing
DekelOil PLC Making More Progress on Debt Refinancing
25/04/2016 (Proactive Investors UK) - Palm oil producer DekelOil Public Ltd (LON:DKL) is making good progress in refinancing a €6.9mln senior debt facility with the West African Development Bank, it said.
The debt has annual interest of 10.5% and was used to build the group's 60t/hr extraction mill in the Ivory Coast.
The group is streamlining its financing structure and it comes hot on the heels of the cancellation of a capital note of €5.1mln last year and the replacing of a €8.69mln 10.5% facility last month a new seven year €9.15 million 7% facility with NSIA Banque Cote D'Ivoire.
The group's executive director Lincoln Moore told investors: "We are making excellent progress in ensuring DekelOil has a balance sheet more befitting of our status as an established producer.
"Combined with further progress being made on the ground, as demonstrated by our record Q1 2016 production performance, and a first full quarter contribution from our recently commissioned kernel crushing plant, the strong momentum behind the business continues into 2016."
The firm posted a 134% rise in revenues in 2015 thanks to record production, generating 35,770 tonnes of crude palm oil (CPO) and 6,221 kernels in the 12 months to December 31, up from 14,242 tonnes and 2,504 kernels in 2014.
The firm reported earnings (EBITDA) of €3.7mln versus 2014’s loss of €0.4mln.
To gain the latest refinance, the firm has been given a rating of A- on short term loans and BBB- on long term loans by Bloomfield Investment Corporation - a leading African focused Credit Rating Agency, which is sufficient to execute an investment grade senior debt refinance.
In addition, all local government requirements have been completed, the company added.
The debt has annual interest of 10.5% and was used to build the group's 60t/hr extraction mill in the Ivory Coast.
The group is streamlining its financing structure and it comes hot on the heels of the cancellation of a capital note of €5.1mln last year and the replacing of a €8.69mln 10.5% facility last month a new seven year €9.15 million 7% facility with NSIA Banque Cote D'Ivoire.
The group's executive director Lincoln Moore told investors: "We are making excellent progress in ensuring DekelOil has a balance sheet more befitting of our status as an established producer.
"Combined with further progress being made on the ground, as demonstrated by our record Q1 2016 production performance, and a first full quarter contribution from our recently commissioned kernel crushing plant, the strong momentum behind the business continues into 2016."
The firm posted a 134% rise in revenues in 2015 thanks to record production, generating 35,770 tonnes of crude palm oil (CPO) and 6,221 kernels in the 12 months to December 31, up from 14,242 tonnes and 2,504 kernels in 2014.
The firm reported earnings (EBITDA) of €3.7mln versus 2014’s loss of €0.4mln.
To gain the latest refinance, the firm has been given a rating of A- on short term loans and BBB- on long term loans by Bloomfield Investment Corporation - a leading African focused Credit Rating Agency, which is sufficient to execute an investment grade senior debt refinance.
In addition, all local government requirements have been completed, the company added.