27th May 2020 06:55
(Alliance News) - African agricultural company Agriterra Ltd on Tuesday said its unit Desenvolvemento E Comercializacao Agricola Ltda has secured a USD4.6 million working capital loan from First Capital Bank SA.
The loan will be used by Desenvolvemento E Comercializacao Agricola to finance and secure the purchase of up to 42,000 tonnes of raw maize during the period from May to August.
The financed maize will be processed and sold by the Agriterra arm from its facilities in Chimoio, Mozambique, into the local wholesale, retail and non-profit organisation markets.
The 12-month loan bears an interest rate of 85% of the Mozambique Central Bank prime rate, which is currently 17.90%, suggesting a rate of about 15% at present.
Agriterra Chair Caroline Havers said: "We are delighted to have secured this significant facility which should enable us to benefit from a strengthened purchasing position and set up our maize operations for a successful trading, processing and sales season."
Shares in Agriterra closed untraded at 5.00 pence each on Tuesday in London.
By Tapan Panchal; [email protected]
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