Appointment of African Export-Import Bank

RNS Number : 7416X

Equatorial Palm Oil plc

13 February 2013

 



13 February 2013

EQUATORIAL PALM OIL plc

("EPO" or the "Company")

Appointment of African Export-Import Bank as corporate advisory partner to Liberian Palm Developments Ltd

The board of EPO (the "Board") is pleased to announce that Liberian Palm Developments Ltd ("LPD"), the joint venture between EPO and BioPalm Energy Ltd., has appointed African Export-Import Bank ("Afreximbank") as a corporate advisory partner for the purpose of securing a $140 million financing facility (the "Facility") which is expected to be sufficient to fund the Palm Bay oil palm project located near the deepwater port of Buchanan in Liberia, West Africa ("the Project").

The Project will involve large-scale development for the cultivation of oil palms and the Board feels that the appointment of Afreximbank demonstrates the continued progress made by the Company in implementing its strategy of becoming a leading West African palm oil producer.

As corporate advisory partner to LPD, Afreximbank will be responsible for identifying and approaching suitable financiers for the Facility.

Michael Frayne, chairman of EPO, commented:

"The appointment of African Export-Import Bank is another important milestone in EPO becoming a leading palm oil producer in West Africa. The proposed Facility is part of the overall funding strategy to support our large-scale planting programme at Palm Bay through to positive cash flow. Once secured, this funding will enable us to drive forward a project that is as important for Liberia as it is attractive for investors."

Dr. Benedict O. Oramah, Executive Vice-President of Business Development and Corporate Banking, Afreximbank commented:

"The collaboration with Liberian Palm Developments offers an exciting opportunity in a region with political stability and favourable conditions for oil palm cultivation. The Project will have a significant social impact on the local communities. The social and economic objectives of Liberian Palm Developments are in line with those of the African Export-Import Bank and we look forward to developing our relationship further as LPD works towards delivering its long term growth objectives."

- Ends -

For further information, please visit www.epoil.co.uk or contact:

Equatorial Palm Oil plc Michael Frayne (Chairman)	[phone]
Strand Hanson Limited (Nominated Adviser) James Harris / Andrew Emmott	[phone]
Mirabaud Securities LLP (Broker) Peter Krens	[phone]
Pelham Bell Pottinger (Financial / Corporate PR) Archie Berens / Joanna Boon	[phone]

Notes to editors:

·      The African Export-Import Bank was established in October 1993 by African governments, African private and institutional investors, as well as non-African financial institutions and private investors, for the purpose of financing, promoting and expanding intra-African and extra-African trade. The objectives of Afreximbank are to stimulate consistent expansion, diversification and development of African trade while operating as a profit-orientated, socially responsible financial institution and as a centre of excellence in African trade.

·      Equatorial Palm Oil plc (EPO) is a UK publicly-listed crude palm oil (CPO) producer with palm oil estates in Liberia, West Africa. The Company was founded in 2005 and is focused on becoming a global, sustainable producer of high quality palm oil to regional and international markets.

·      With significant land position in Liberia, EPO is geographically well positioned to serve the international and regional markets and is committed to making a positive impact on the community through investment in local schools, health clinics, housing and infrastructure. 

·      The Company's 50:50 joint venture partner in LPD is Biopalm Energy Ltd, a subsidiary of the Siva Group, which invests in oil palm projects around the world.

 

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