LONDON (Alliance News) - PME African Infrastructure Opportunities PLC Friday said it has signed a EUR600,000 loan agreement, with the proceeds to be used for general working capital purposes.
The loan, which is secured on PME African Infrastructure Opportunities' cash receivables, was agreed with Helvetica Deutschland GmbH. It carries an interest rate of 10% a year.
The face value of the loan is repayable on October 10 2015. Interest payments are payable quarterly in arrears. No arrangement or commitment fees payable.
PME African Infrastructure Opportunities Chairman Paul Macdonald is interested in 40% of Helvetica's issued share capital, rendering the lender a related party.
Neverthless, PME African Infrastructure Opportunities' independent director, Lawrence Kearns, has decided that the terms of the loan are fair and reasonable to the company's shareholders. He consulted with PME African Infrastructure Opportunities' nominated adviser, Smith & Williamson Corporate Finance Ltd, in coming to his decision.
PME African Infrastructure Opportunities was established to invest in sub-Saharan African infrastructure and infrastructure related industries,
PME African Infrastructure Opportunities shares were Friday untraded at USD0.155.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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