Home Agribusiness Verde Agritech hails major funding milestone – with BNDES loan

Verde Agritech hails major funding milestone – with BNDES loan

105
0
SHARE

 

The debt arrangement will be fulfilled by Santander, the group said in the filing

Verde Agritech PLC (TSE:NPK) has reached a major milestone – sealing a debt financing deal for R$1.04mln with the Brazilian Development Bank (BNDES) to build a facility to produce its Super Greensand fertiliser.

he debt arrangement will be fulfilled by Santander Bank because direct operations with BNDES requires a minimum financing of $10mln and Verde requires less funds for this stage of mine and plant construction.

“It is reassuring to receive funding approval from Brazil’s Development Bank and direct support from Santander,” said Verde’s President & CEO, Cristiano Veloso.

“Though Verde’s PFS is predicated on funding expansions with sales’ cashflow, debt funding has been preferred at this stage in order to expedite our project and ensure no share dilution for our holders.”

The loan term is 60 months and the total interest rate is 12.26%.

Last year, the firm announced the results of its pre-feasibility study (PFS), for its flagship Brazilian project.

That showed a post-tax net present value discounted at 8% of US$ 1.98bn and internal rate of return of an impressive 290%.

In March this year, Verde announced a turnkey agreement for the construction of a processing plant with expected production of 45 tons per hour of Super Greensand trademark.

The engineering design and site layout were conceived to allow future expansions. The plant is expected to start production in the second half of 2018.