REG - Tlou Energy Ltd - Lesedi Project Finance

TLOU EnergyAnnouncement

30/11/2021 13:00

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RNS Number : 0630U  Tlou Energy Ltd  30 November 2021

30 November 2021

 

Tlou Energy Limited

("Tlou" or "the Company")

 

Lesedi Project Finance

 

 

Tlou Energy is a power generation company developing clean energy solutions
for Botswana and the sub-Saharan region.

The Company has signed a Convertible Note Agreement with Botswana Public
Officers Pension Fund (BPOPF) and has also agreed terms for an equity
investment by BPOPF.

 

Convertible Note

The principal terms of the Convertible Note Agreement ("Note") are as follows:

Ø      Amount:              BWP 50m (~USD 5m)

Ø      Maturity:             5 years

Ø      Interest rate:     7.75% per annum

Ø      Conversion:        Conversion to shares at a 10% discount
to the 90-day VWAP

 

The funds are planned to be used to finance construction of transmission line
infrastructure to connect the Lesedi Project to the Botswana Power Corporation
power grid and to fund installation of generation assets and ancillary costs
to facilitate power generation and sale of electricity.

The Note has a fixed interest rate of 7.75% p.a. payable every six months.
Interest may be capitalised for the first 18 months.

The Note can be converted to ordinary shares on exercise of the conversion
option by BPOPF at a 10% discount to the weighted average traded price of the
Company's shares on the highest average volume exchange of the BSE/ASX/AIM
over the 90 trading days prior to the maturity date.

Upon conversion of the Note into fully paid ordinary shares, the shares will
rank pari passu with the Company's existing shares. The Company shall obtain
all regulatory and shareholder approvals as applicable which shall be
conditions precedent to the coming into force and effect of the Note and any
obligations placed upon BPOPF to subscribe for the Note.

 

Equity Investment

In addition to the Note, the Company and BPOPF have agreed preliminary terms
for a further BWP 50m (~USD 5m) equity investment post 1 July 2022 which is
conditional to legal agreements in relation to this process being prepared and
finalised. Further details will be provided in due course.

 

Mr Moemedi Malindah, BPOPF CEO, said

"Tlou Energy is building vital assets and infrastructure for Botswana. We are
committed to long-term support of the project and look forward to its
continued success.

This is a long-term strategic investment, and we are very pleased to be able
to support the Company and help bring clean reliable power and sustainable
employment to Botswana."

 

Mr Tony Gilby, Tlou's Managing Director, said

"We are extremely grateful to BPOPF for their continued and unwavering support
of the Company and look forward to working together in the long term to
develop the Company to its full potential and bring a return to BPOPF and all
our shareholders.

With funds now in place along with required approvals and agreements to
commercialise our gas we look forward to pushing on with development."

 

About BPOPF

Botswana Public Officers Pensions Fund is the biggest pension fund in Botswana
and Tlou's largest shareholder. The Fund was registered in 2001 and has
experienced phenomenal growth since its inception. Further information can be
found at www.bpopf.co.bw

 

By Authority of the Board of Directors

Mr. Anthony Gilby

Managing Director

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

****

 

For further information regarding this announcement please contact:

 

 Tlou Energy Limited                 +61 7 3040 9084
 Tony Gilby, Managing Director
 Solomon Rowland, General Manager

 Grant Thornton (Nominated Adviser)  +44 (0)20 7383 5100
 Harrison Clarke, Colin Aaronson

 Shore Capital (Broker)              +44 (0)20 7408 4090
 Toby Gibbs, John More

 Public Relations
 Ashley Seller                       +61 418 556 875

 

Forward-Looking Statements

This announcement may contain certain forward-looking statements.  Actual
results may differ materially from those projected or implied in any
forward-looking statements.  Such forward-looking information involves risks
and uncertainties that could significantly affect expected results.  No
representation is made that any of those statements or forecasts will come to
pass or that any forecast results will be achieved.  You are cautioned not to
place any reliance on such statements or forecasts.  Those forward-looking
and other statements speak only as at the date of this announcement. Save as
required by any applicable law or regulation, Tlou Energy Limited undertakes
no obligation to update any forward-looking statements.

 

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