Dekel Agri-Vision PLC - agriculture company - Reports new EUR15.2 million bond facility, approved by the Ivorian regulator, which forms part of long-term refinance programme to extend maturity of debt profile to strengthen the balance sheet and facilitate the roll-out of Dekel's growth strategy. A first tranche of the bond, totalling EUR5 million, has been issued to regionally focused institutions including banks, pension funds and insurance companies. This bond includes an initial three-year capital repayment holiday. During this period, the bond will be interest-only chargeable at an annual rate of 7.75%. At the expiry of this initial three-year period, the capital repayments of the first tranche of the bond will be EUR1.25 million per annum during years four to seven of the loan.
Dekel Agri-Vision says EUR2.6 million of the proceeds of the first tranche of the bond will go towards replacing a short-term debt facility with the remainder of the proceeds of the bond being used to provide a working capital cushion for the cashew processing project in Tiebissou, Cote d'Ivoire, which is expected to commence production in the second quarter of 2021. The company says it will consider the issue of further tranches of the bond as part of its ongoing debt refinancing programme and expansion plans.
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By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Dekel Agri (DKL)