(Alliance News) - PME African Infrastructure Opportunities PLC said Friday it has entered into an amendment agreement with Optas GmbH to increase the amount of an initial loan.
The investment company said that Optas has agreed to increase the amount of initial loan to EUR600,000 from EUR400,000 as well as to extend the date of the repayment of the increased loan to May 28, 2021. All other terms of the initial loan remain unchanged, the company said.
The company announced that it had entered into a secured loan agreement with Optas in May, to ensure it has enough working capital to comply with its needs while it finalizes a inter-company loan between its two subsidiaries PME Properties Ltd and PME TZ Property (Mauritius) Ltd.
PME African said that registration process has proven time consuming due to slow progress within a number of departments within the Bank of Tanzania.
The company has been advised that, prior to the registration of the existing group inter-company loan being completed, the company is not able to transfer funds from its Tanzanian subsidiary to the rest of the group and outside of Tanzania.
Therefore PME African has sought to increase its loan with Optas in order to mitigate the potential risk of insufficient working capital being available to the company in the event that the registration process with the Bank of Tanzania is further delayed and thereby affecting the group's ability to transfer funds held in its Tanzanian subsidiary to the company.
As at November 28, the company had drawn down EUR358,000 of the initial loan. It expects to draw down the additional funds at a rate of EUR25,000 to EUR55,000 per month.
PME African Infrastructure Opportunities shares were untraded at 0.06 pence each on Friday.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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