LONDON (Alliance News) - Victoria Oil & Gas PLC Friday said it has signed a USD10.0 million loan agreement and customs bond facility between its Cameroonian operating subsidiary, Gaz du Cameroun SA (GDC) and BGFIBank of Cameroon.
The principal facility of USD8.3 million will be deployed by Gaz du Cameroun to fund its share of near-term revenue producing customer connection work.
Victoria Oil & Gas said this includes pipeline extensions for recently signed Dangote Cement and will also support the installation of Gensets to customers such as Guinness, Icrafon, Camlait and SCTB.
The facility is for an initial term of six months, which is renewable once on the same terms for a further 6 month period, with interest payable at a rate of 7.3% per annum.
It can then be converted into a three year term loan re-payable in 36 monthly instalments at the same interest rate, the firm said.
The second facility with BGFI is for a 12 month USD1.7 million customs bond to be provided to Cameroon Customs in support of the temporary import of the Gensets, which have recently been released to GDC following the grant of a temporary import licence by the Ministry of Finance and reduction in the applicable duty payable.
The bond allows GDC to import the Gensets without payment of import duty for a period of one year from release.
At the end of the year, GDC can apply for an automatic 12 month extension of this exemption, or the Gensets can be re-exported without payment of the duty.
The stock was trading at 1.35 pence Friday morning, up 0.05 pence or 4.2%.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
Copyright © 2014 Alliance News Limited. All Rights Reserved.
