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Minbos signs final term sheet for US$12 million funding package for the Cabinda Phosphate Fertilizer Project

Published by , Editorial Assistant
World Fertilizer,


Minbos Resources Ltd is pleased to announce that the Company and Banco Angolano de Investimentos, S.A. (Banco BAI), Angola’s largest commercial bank, signed a final term sheet in relation to a US$12 million term loan to be provided by Banco BAI to Soul Rock Ltd, a subsidiary of the company for the Cabinda Phosphate Fertilizer Project.

Minbos Resources Ltd has announced that the company and Banco Angolano de Investimentos, S.A. (Banco BAI), Angola’s largest commercial bank, signed a final term sheet in relation to a US$12 million term loan to be provided by Banco BAI to Soul Rock Ltd, a subsidiary of the company for the Cabinda Phosphate Fertilizer Project.

Hilights;

  • US$12 million, seven-year term loan is to be provided by Banco BAI.
  • Interest rate of 7.5% per annum, with no interest payable in the first year and no principal payable for the first two years.
  • Banco BAI has set an aggressive timetable to finalise the loan documentation and normal legal and regulatory processes.
  • Finalising loan documentation will be subject to, among other conditions, securing guarantees provided by the Fundo de Garantia de Crédito (Credit Guarantee Fund), with this process now well advanced.
  • Funds to be used for construction of the project to supply critical phosphate fertilizer for the 2025 planting season.
  • Importantly, the US$12 million Banco BAI term loan, coupled with the US$14 million IDC loan facility and the US$10 million equity investment from the Angolan Sovereign Wealth Fund will allow Minbos to complete both Stage 1 construction and the Stage 2 expansion of the fertilizer plant.
  • Banco BAI has been a strong supporter of the efforts to develop agriculture along the Lobito Corridor through credit lending to agriculture focussed businesses such as Minbos.
  • Supporting the company’s ambitions in Angola are a number of Presidential Decree’s and initiatives, including:
    • Presidential Decree no. 213/23: Prioritising local production over imports including fertilizers.
    • Aviso No.10 ‘Granting Credit to the Real Sector of Economy’: requires financial institutions to grant a minimum quota of credit per year to borrowers in the agriculture sector, with the cost of credit capped at 7.5% for loans and 10% for working capital facilities.
    • The second measure provides qualifying borrowers up to 80% of the security required by the lenders, in the form of Public Guarantees from the Credit Guarantee Fund. The cost for the guarantee is 2%, which is also loaned by the lender.

Read the article online at: https://www.worldfertilizer.com/phosphates/06122024/minbos-signs-final-term-sheet-for-us12-million-funding-package-for-the-cabinda-phosphate-fertilizer-project/

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