15/02/2013 (Proactive Investor) - Equatorial Palm Oil (LON:PAL) has reached another milestone in its bid to become a leading palm oil producer in West Africa.

Liberian Palm Developments, the joint venture between the company and BioPalm Energy, has hired African Export-Import Bank as a partner to secure a US$140mln financing.

The cash is expected to be enough to fund the Palm Bay oil palm project which lies near the deep-water port of Buchanan in Liberia.

Equatorial's chairman Michael Frayne told investors: "The proposed facility is part of the overall funding strategy to support our large-scale planting programme at Palm Bay through to positive cash flow.

"Once secured, this funding will enable us to drive forward a project that is as important for Liberia as it is attractive for investors."

The Palm Bay oil palm project involves large scale oil palm cultivation.

The company said it feels that the appointment of Afreximbank demonstrates the continued progress made by the company in implementing its strategy of becoming a leading West African palm oil producer.