REG - Dekel Agri-Vision - Bond Facility Use of Proceeds Update

Dekel Agri-VisionAnnouncement

16/08/2022 07:00

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RNS Number : 0916W  Dekel Agri-Vision PLC  16 August 2022

 

Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food Producers

 

16 August 2022

Dekel Agri-Vision Plc ('Dekel' or the 'Company')

Bond Facility Use of Proceeds Update

 

Dekel Agri-Vision Plc (AIM: DKL), the West African agriculture company focused
on building a portfolio of sustainable and diversified projects, is pleased to
provide an update regarding the use of funds from the final drawdown of
approximately €9.2 million from its approximately €15.2 million seven-year
bond facility previously announced on 25 July 2022 (the "Bond").

 

A first payment of €3.6 million has been made to AgDevCo Limited
("AgDevCo"), a leading African agriculture sector impact investor, which
decreases the outstanding balance of the loan with AgDevCo (the "AgDevCo
Loan") by 50% from approximately €7.2 million to approximately €3.6
million. This is in line with our previously announced objective to largely
utilise the proceeds of the Bond to refinance existing debt facilities with
higher interest rates. The AgDevCo Loan is denominated in Euros with a current
interest rate of 7.4%; however, we expect the interest rate to increase
further towards the interest rate cap of 9% as European Central Bank ("ECB")
interest rate increases flow through.  This compares with the bond facility
rate of 7.25%.

 

Our discussions with our debt providers continue and we will provide further
updates as appropriate as we continue with our objective to optimise our debt
structure in the best interests of the Company and its shareholders.  Whilst
use of funds decisions are considered, surplus funds on hand are currently
held on short term deposit with a 4% interest rate return.

 

Lincoln Moore, Dekel's Executive Director, said:

 

"With the ECB increasing rates recently by 50 basis points, the completion of
our Bond fixed at 7.25% has proven very timely and significantly insulates
Dekel from global interest rate increases as we execute our growth strategy.
As announced on 25 July 2022, our two to three year strategy remains unchanged
in terms of utilising the principal grace periods of the Bond and the
relatively low interest rates achieved to ensure we are well funded internally
while we build our cash base from the material uplift in operating cash flow
expected as the Palm Oil Operation and Cashew Operation work in tandem.
Dekel will then have optionality to either pay down debt or access lower cost
financing to fund future growth plans and, at the appropriate time, look to
recommence a dividend programme, thereby providing shareholders with a yield
as well as capital growth."

 

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

 

** ENDS **

 

For further information please visit the Company's website
www.dekelagrivision.com or contact:

 

 Dekel Agri-Vision Plc                     +44 (0) 207 236 1177

 Youval Rasin

 Shai Kol

 Lincoln Moore

 WH Ireland Ltd (Nomad and Joint Broker)   +44 (0) 20 7220 1666

 James Joyce / Ben Good

 Optiva Securities Limited (Joint Broker)  +44 (0) 203 137 1903

 Christian Dennis / Daniel Ingram

Notes:

Dekel Agri-Vision Plc is a multi-project, multi-commodity agriculture company
focused on West Africa.  It has a portfolio of projects in Côte d'Ivoire at
various stages of development: a fully operational palm oil project in
Ayenouan where fruit produced by local smallholders is processed at the
Company's 60,000tpa capacity crude palm oil mill and a cashew processing
project in Tiebissou, which commenced production in early January 2022.

 

 

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