Roll Over of Loan to Joint Venture Company

RNS Number : 3809G

Equatorial Palm Oil plc

05 November 2018

 

5 November 2018

EQUATORIAL PALM OIL plc

("EPO" or the "Company") 

Roll Over of Loan to Joint Venture Company

Equatorial Palm Oil plc (AIM: PAL), the AIM listed palm oil development and production company with operations in Liberia, West Africa, announces today that it has agreed to extend the maturity of its US$2,00,000 loan to its 50 per cent. owned joint venture company, Liberian Palm Developments Limited ("LPD"), announced on 7 November 2013 for the funding or LPD's operations (the "Loan"). The maturity date for the Loan, for which US$2,938,656 including accrued interest is outstanding, will be extended from 7 November 2018 to 6 November 2023 (the "Loan Extension"). The Loan Extension has been effected by a deed of amendment and all other terms of the Loan remain unchanged.

The key terms of the loan are as follows:

·      Term - 5 years expiring on 6 November 2023

·     Interest - USD LIBOR + 4 per cent per annum or 8 per cent per annum, whichever is the higher

·     Repayment - Loan principal (together with all accrued Interest due) on expiry of the Term or earlier at the election of LPD

The total liabilities owed by LPD to EPO as at 1 November 2018 amount to US$6,192,676.04.

Related Party Transaction

KLK (through its wholly owned subsidiary KL-Kepong International Limited) currently holds 50 per cent of the issued share capital of LPD and ordinary shares in EPO representing approximately 62.86 per cent. of the issued share capital of the Company. Accordingly, LPD is a related party to the Company as defined in the AIM rules for Companies and the Loan Extension is classified as related party transaction under the AIM Rules for Companies. Michael Frayne being the non-related director of EPO for the purposes of this transaction (Geoffrey Brown serves on the Board of LPD), considers, having consulted with the Company's nominated adviser, Strand Hanson Limited, that the terms of the Loan Extension are fair and reasonable insofar as the Company's shareholders are concerned.

- END -

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

Equatorial Palm Oil plc Geoffrey Brown (Executive Director)	[phone]
Strand Hanson Limited (Nominated Adviser) James Harris / James Bellman	[phone]
Mirabaud Securities LLP (Broker) Peter Krens	[phone]

Notes to editors:

Equatorial Palm Oil plc is an AIM listed crude palm oil developer and 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 a significant land position in Liberia through its operating subsidiary LPD, the Company is geographically well positioned to serve the international and regional markets and is committed to making a positive impact on the communities in which it operates through investment in local schools, health clinics, housing and infrastructure. 

The Company's largest shareholder and 50:50 joint venture partner in LPD is KLK. KLK is one of the largest palm oil producers in the world and the Company will greatly benefit from their many years of expertise in oil palm development.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.

 

END

 

 

MSCUVRSRWWAARAA