25th Sep 2006 07:01
Lonrho Africa PLC25 September 2006 FOR IMMEDIATE RELEASE Lonrho Africa plc ("Lonrho Africa" or "the Company") LUBA FREEPORT MANDATES DEBT FINANCING ORGANISATION Lonrho Africa is pleased to announce that Luba Freeport Ltd ("Luba"), LonrhoAfrica's 63% subsidiary, has mandated The Netherlands Development FinanceCompany ("FMO") to provide up to US$30m of debt financing for the development ofits port facilities in Equatorial Guinea. The provision of the debt facility issubject to the completion of satisfactory due diligence and the formal approvalof FMO. FMO, the international development bank of the Netherlands, was founded in 1970.It invests risk capital in companies and financial institutions in developingcountries. FMO considers infrastructure as the backbone of economic development. "The appointment of FMO, a leading African debt provider, is a vital step inrealising the full potential of the Luba Freeport," said David Lenigas, JointChairman and CEO of Lonrho Africa. "In order to ensure that the development ofLuba is completed efficiently, we have recently commissioned Jurong to undertakethe design and construction work while simultaneously progressing fundingnegotiations." This agreement follows Luba's recent announcement that Mobil Equatorial GuineaInc. ("MEGI") and Luba have agreed on terms to build a 60,000 square metrelogistics facility at Luba. This world-class facility will be the new base forMEGI and will include warehousing and office space, marine hose storage, an API(American Petroleum Industry) specification pipe-yard, inspection shed, wash bayand storage area. Construction is expected to be completed by 30 June 2007 whenthe contract will become effective for a period of seven years with anadditional three one-year extension options. The value of the contract amountsto more than US$30 million over the initial seven-year period. In July, Luba appointed the world's premier port facilities development group,Jurong Primewide International ("Jurong"), which has been mandated to providemaster design and planning services for the substantial expansion of theinfrastructure and facilities of the Luba quayside and 50 hectares of Freeport.In addition to a fully integrated, short-term expansion feasibility study Jurongwill provide long-term development plans for Luba's expansion. Followingcompletion of the feasibility study, Jurong will commence construction of thefacilities through an Engineering, Planning and Construction (EPC) contract. The planned expansion will increase the operational capacity of the Freeport andwill provide improved services, facilities and logistics to all existing andfuture clients. Luba Freeport's major contracted clients include: Amerada Hess,Mobil Equatorial Guinea, Baker Hughes, Marathon, LOTEG, Schlumberger, Nalco,SBM, Devon Energy, Petronas, Noble Energy and MI Equatorial Guinea. In addition to its Freeport status and strategic geographic location, Lubabenefits from naturally occurring deep water conditions handling both oil fieldsupply vessels and ocean-going ships. As part of the expansion, Luba will pushthe jetty and facilities out towards the sea to give up to 18m of draft whichwill facilitate the servicing of the largest ocean-going vessels. -END- For further information, please contact: Lonrho Africa Plc +44 (0)20 7016 5100David LenigasEmma Priestley Strand Partners Limited +44 (0)20 7409 3494Simon RaggettMatthew Chandler Cardew Group +44 (0)20 7930 0777Nadja Vetter +44 (0)7941 340436Eden Mendel +44 (0)7887 676 603Emma Consett +44 (0)7971 468 308 NOTES TO EDITORS Lonrho Africa is in the process of re-establishing a significant presence on theAfrican Continent. Its investment and acquisition strategy, adopted followingthe appointment of David Lenigas as Chief Executive in December 2005, will focuson the natural resources, infrastructure, leisure and agribusiness sectors.Lonrho Africa has considerable experience across these industries in a widerange of countries. Earlier this year, the Company announced investments inBrinkley Mining Plc and Nare Diamonds Ltd. In May, Lonrho Africa announced its acquisition of 63% of the issued sharecapital of Luba Freeport in Equatorial Guinea. The port acts as a logisticscentre for the oil and gas industries in the Gulf of Guinea and services majoroil companies in the region. Its Tax Free status and central geographicallocation make it a unique choice for a West African regional hub. Lonrho Africahas agreed with the Government of Equatorial Guinea to maintain the overalldevelopment programme for the Port facilities. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Lonrho