REG - Mercantile Ports&Log - Re-structured Debt Facility and Board Appointment

Mercantile Ports & LogisticsAnnouncement

16/06/2021 07:00

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RNS Number : 0152C  Mercantile Ports & Logistics Ltd  16 June 2021

16 June 2021

 

Mercantile Ports & Logistics Limited

("MPL", the "Group" or the "Company")

 

Re-structured Debt Facility

and

Board Appointment

 

Mercantile Ports & Logistics Limited, which is operating and developing
out its port and logistics facility in Navi Mumbai, Maharashtra, India is
pleased to announce that it has successfully negotiated and executed a
re-structured debt facility with its consortium of banks that both takes into
account the significant progress made with business at its Karanja port and
logistics facility while also recognising the acute disruption in India caused
by the Covid-19 pandemic.

 

The terms of the re-structured debt facility are favourable to the Company, in
summary:

 

·    Debt Interest Rate lowered from 13.45% to  9.5% per annum.

·    There will be a moratorium on interest rate payments until February
2022 in recognition of the severity of the Covid-19 pandemic which is
currently impacting India.

·   The commencement of the amortisation of the principal loan amount has
also been extended by 24 months from October 2020 to October 2022.

 

While the interest moratorium and extended amortisation period are a feature
of the Reserve Bank of India's Covid-19 relief policy, MPL is pleased to note
that the almost 400 bps reduction in the interest rate is based on the
consortium banks own independent viability report on MPL's business on the
ground. The terms of the re-structured debt facility underscore that the
facility is now revenue generating and has a healthy pipeline of future
customers.

 

MPL is also pleased to announce the appointment of Peter Mills as a
Non-Executive Director and Chair of the audit committee with immediate effect.

 

Peter is an experienced Chairman and Board member, both non-executive and
executive, with a strong corporate governance and regulatory understanding. He
has a widespread industry knowledge with approximately 30 years in onshore and
offshore financial services markets and broad involvement with government and
regulators. Having qualified as a Chartered Accountant in 1996, his
directorships have included banking groups, fund management companies,
fiduciary services companies, listed and unlisted investment funds, captive
insurance company and leasing companies. His fund management and investment
fund roles have predominately been in the infrastructure, private equity and
property asset classes.

 

Jeremy Warner Allen, Chairman of MPL said, "The restructured debt facility is
testament to the growing strength of MPL's business. The opportunities now
available to MPL are significant and it is very pleasing to note that our
consortium of banks endorse our business.

 

"Our Karanja based port and logistics facility has moved from being a
development project to becoming a revenue generating asset. While the Covid-19
pandemic has, as for many companies in India and around the world, had an
impact on our business, I am pleased about the progress that has been made by
our business development team. While navigating the Covid-19 restrictions,
they have continued to sign new customers and develop a healthy pipeline of
new business that could use the facility.

 

"I am also delighted to welcome Peter Mills to the MPL Board. His extensive
experience will bring invaluable skills and expertise to the Group especially
in his role as Chair of the Audit Committee."

 

Jay Mehta, CEO of MPL stated, "The restructuring of our debt facility is an
important milestone. Our consortium of bankers, after conducting their own
diligence and viability studies in conjunction with independent rating
agencies, have deemed our business worthy of a significant reduction in
interest rate on our term loan.

 

"I am also particularly pleased that the moratorium in principal payments and
interest payments gives significant flexibility to our business as we navigate
around the global pandemic. We continue to make progress with potential end
customers and will further update the market in due course".

 

This announcement contains inside information.

 

Further information pursuant to Schedule Two, paragraph (g) of the AIM Rules:

 

Peter David Mills, aged 51, is currently or has previously been a director of
the following companies within the past five years:

 

Current Directorships

 Guernsey Union D'Escrime LBG
 Aspida Services Limited
 Beauvoir Group Limited
 Mercantile Ports & Logistics Limited
 Basalt Infrastructure Partners III GP Limited
 M&G (Guernsey) Limited
 The M&G Offshore UK Inflation Linked Corporate Bond Fund Limited
 The M&G Offshore Corporate Bond Fund Limited
 The M&G Offshore Global Dividend Fund Limited
 The M&G Offshore Global High Yield Bond Fund Limited
 The M&G Offshore Global Macro Bond Fund Limited
 The M&G Offshore Recovery Fund Limited
 Aspida Advisory Services Limited
 Shelley Capital (Guernsey) Limited
 Aspida Group Limited
 EFG Private Bank (Channel Islands) Limited
 Magellan Limited
 Basalt Infrastructure Partners II GP Limited
 BWE GP II Limited
 Butterfield Trust (Guernsey) Limited
 Basalt Infrastructure Partners GP Member Limited
 KYC ME (Guernsey) Limited
 Icondia Limited
 The Finance Sector Non-Executive Director Forum LBG
 BWE GP Limited
 Basalt Infrastructure Partners GP Limited
 Two Acres Limited
 Mid Europa Fund Management Limited

 

Past Directorships

 InfraRed NF China Real Estate Company Limited
 InfraRed NF China Investors GP Limited
 Beauvoir Tax and Accounting Services Limited
 Shield Blockchain Infrastructure PCC Limited
 Inside Africa Capital Advisors & Wealth Management Limited
 DEBL Capital Partners Limited
 Enhance Group Limited

 

There is no further information required to be disclosed pursuant to Schedule
Two, paragraph (g) of the AIM Rules for Companies

 

Peter holds no interest in the Company's shares

 

 

Enquiries:

 

 Mercantile Ports & Logistics Ltd      Jay Mehta
                                       C/O SEC Newgate
                                       +44 (0)203 757 6880
 Cenkos Securities plc                 Stephen Keys
 (Nomad and Joint Broker)              +44 (0)207 397 8900
 Zeus Capital Limited                  John Goold (Corporate Broking)
 (Joint Broker)                        +44 (0)203 829 5000
 SEC Newgate                           Adam Lloyd/Isabelle Smurfit
 (Financial PR)                        +44 (0)203 757 6880
                                       mpl@secnewgate.co.uk (mailto:mpl@secnewgate.co.uk)

 

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