Equatorial Palm Oil Agrees USD20 Million Loan With Liberian Partner

LONDON (Alliance News) - Equatorial Palm Oil PLC said Monday its 50%-owned joint venture company ...

Alliance News 20 May, 2019 | 12:32PM
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LONDON (Alliance News) - Equatorial Palm Oil PLC said Monday its 50%-owned joint venture company Liberian Palm Developments Ltd has agreed a USD20.0 million loan deal with KLK Agro Plantations Pte Ltd,

KLK Agro Plantations is a wholly owned subsidiary of Malaysian agriculture company Kuala Lumpur Kepong Berhad.

Equatorial Palm Oil said the loan will fund the next phase of the company's operations in Liberia. The loan has an interest rate set at 3-months USD LIBOR plus 5% per annum and is repayable in full on expiry, including accrued interest, in 2024.

Kuala Lumpur Kepong holds about a 63% stake in Equatorial Palm Oil and the remaining 50% of the Liberian Palm venture.

Kuala Lumpur Kepong has previously loaned Equatorial Palm Oil USD20.5 million and two payments of USD30.0 million to fund operations and construction at the project.

Shares in Equatorial Palm Oil were down 4.4% Monday at 1.10 pence each.

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Equatorial Palm Oil PLC 0.75 GBX -3.23 -
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