LONDON (Alliance News) - PME African Infrastructure Opportunities PLC on Tuesday said it secured EUR400,000 loan from Optas GmbH to cover general working capital purposes.
The investment fund entered the loan to ensure it has enough working capital to comply with its needs while it finalises a inter-company loan between its two subsidiaries PME Properties Ltd and PME TZ Property (Mauritius) Ltd.
The process to finalise the loan between the subsidiaries, expected to conclude satisfactorily, has proven time consuming and is currently being transferred to a number of departments within the Bank of Tanzania, PME explained.
"The company has been advised that, prior to the registration of the existing intercompany loan being completed, the group is currently not able to pass funds through the group and outside of Tanzania," PME explained.
This led to the requirement of entering the Optas loan to provide the company with additional certainty in the event of a continued restriction in the company's ability to upstream funds out of Tanzania.
PME currently expects that it will draw down the Optas loan at a rate of approximately EUR40,000 to EUR65,000 per calendar month.
PME African shares were untraded at 0.09 pence each.