REG - Dekel Agri-Vision - Loan Facility– Fixed Interest Rate Agreed

Dekel Agri-VisionAnnouncement

23/06/2023 07:00

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RNS Number : 6462D  Dekel Agri-Vision PLC  23 June 2023

 

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

 

23 June 2023

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

AgDevCo Ltd ("AgDevCo") Loan Facility- Fixed Interest Rate Agreed

 

Dekel Agri-Vision Plc (AIM: DKL), a West African agriculture company focused
on sustainable and diversified projects, has agreed with AgDevCo to modify the
terms of the existing loan facility.

 

As previously disclosed on 16 August 2022, a loan repayment of €3.6 million
was made to AgDevCo Limited, a prominent impact investor in the African
agriculture sector and shareholder in Dekel Agri-Vision. This payment reduced
the outstanding loan balance by approximately 50% from €7.2 million to
approximately €3.6 million. The AgDevCo loan facility, denominated in Euros,
previously had a variable interest rate that would have reached the interest
rate cap of 9% due to increases in Euro Libor interest rates. Dekel and
AgDevCo agreed to fix the interest rate at a lower rate of 7% from 1 January
2023 and 6.75% from 11 August 2022 to 31 December 2022 in consideration for
reducing the tenor of the loan by two years. Dekel will also continue to work
towards the implementation of the ongoing ESG initiatives including RSPO
certification. Principal repayments on the loan will now be made pro-rata from
August 2024 to August 2027.

 

Lincoln Moore, Dekel's Executive Director, said:

 

"This is an excellent outcome to fix the interest rate given the backdrop of
significantly rising global interest rates and also reflects the current
strong performance of the Palm Oil Operation. All our debt obligations are now
fixed which positions us well to manage interest expense obligations whilst we
commence our strategy to decrease our debt levels in 2023 and beyond from the
positive cashflow being generated from the Palm Oil Operation and also from
the Cashew Operation as it ramps up production. We also look forward to
continuing our excellent ongoing partnership with AgDevCo.

 

 

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 / Darshan Patel

 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 is currently transitioning to full commercial
production in 2023.

 

 

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