15th Jul 2021 19:58
Agriterra Ltd - Guernsey-based agricultural company focused on Mozambique - Announces that its subsidiary Desenvolvemente E Comercializacao Agricola Limitada has received a renewal and extension from First Capital Bank SA of USD6.1 million of its working capital facility.
DECA will use the facility to purchase up to 39,000 tonnes of raw maize from July 2021 to April 2022. It will then process and sell the maize at its facilities in Chimoio Mozambique into wholesale, retail and NGO markets.
The interest rate is set at Mozambique Central Bank's prime lending rate of 17.9% less 3.75%. The bank retains the right to renegotiate the agreement if the prime lending rate reaches 16%.
Under the terms of the facility, First Capital Bank requires a cash back guarantee. Agriterra's 50.01% shareholder, Magister Investments Ltd has agreed to provide the needed security.
Current stock price: 4.05 pence
Year-to-date change: up down 12%
By Aidan Lane; [email protected]
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