Lincoln Moore, Exec Director of DekelOil (AIM:DKL) discusses today's syndicated loan drawdown

We caught up again with Lincoln Moore, Executive Director of AIM-listed Palm Oil producer Dekel Oil Plc (AIM:DKL).

Highlights:

· New seven year €4.34 million unsecured loan with interest payable at a rate of 6.85% completed with Sogebourse

o Follows signing of refinancing agreement with Sogebourse and drawdown of first €8.4 million tranche (currently €6.8 million outstanding) in Q4 2016 to refinance, on improved terms, a project development loan (see announcement of 31 October 2016) 

· Approximately €2.0 million of the Second Tranche will be used to replace short-term loans

· Remainder of the proceeds to fund one or more existing or future projects within the Ivory Coast - approximately €1.5 million will be held on deposit attracting a current interest return of 5% whilst investment opportunities are considered

· Any surplus funds from the Second Tranche may be used to refinance long term debt on improved terms, specifically to:

o repay a tranche of the seven-year €9.15 million (current €7.1 million outstanding) NSIA Banque Cote D'Ivoire loan which bears annual interest at an effective rate of 7.7% (7% nominal rate plus 10% tax) - this tax is not applicable to the Sogebourse loan

· The Directors believe that the reduced interest rate payable arising from the Second Tranche will reduce the Company's effective borrowing rate

Lincoln talked to us about what the money will be used for and hints at investment opportunities away from Palm Oil could be in the offing for DKL in the near future.

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