Verde secures funding from BNDES
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May 22, 2018 07:28 ET | Source: Verde AgriTech PLC
TORONTO, May 22, 2018 (GLOBE NEWSWIRE) -- Verde AgriTech Plc (TSX: NPK) (OTCQB:AMHPF) ("Verde” or the “Company”) is pleased to announce that the Brazilian Development Bank (“BNDES) has approved debt financing for its turnkey agreement to build a 45 tons per hour Super Greensand®production facility. The debt arrangement will be fulfilled by Santander Bank because direct operations with BNDES requires a minimum funding of R$ 10 million and Verde requires less funds for this stage of mine and plant construction.
The terms of BNDES funding via Santander are:
Total Debt Facility: R$1.040.000,00
Loan term: 60 months (grace period of 12 months and then will amortize on a straight line basis over 48 months)
Total interest rate: 12.26% (Base interest rate 6.71% + BNDES spread 2.55% + Santander spread 3%)
There are no pending pre-conditions for the execution of the present arrangement, Verde has successfully met all BNDES requirements and the funds will be available within the coming weeks.
“It is reassuring to receive funding approval from Brazil’s Development Bank and direct support from Santander. Though Verde’s PFS is predicated on funding expansions with sales’ cashflow, debt funding has been preferred at this stage in order to expedite our project and ensure no share dilution for our holders,” asserted Verde’s President & CEO, Cristiano Veloso.
In November 27, 2017 the Company announced the results of its pre-feasibility study (“PFS”). The study shows a post-tax net present value discounted at 8% of US$ 1.98 Billion and internal rate of return of 290%. In March 07, 2018 Verde announced a turnkey agreement for the construction of a processing plant with expected production of 45 tons per hour of Super Greensand®. The plant’s engineering design and site layout were conceived to allow future expansions. The plant is expected to start production in the second half of 2018.
About Santander
Operating in Brazil since 1982, Santander Brasil is the third largest private bank in the country by assets. Headquartered in São Paulo, the Brazilian operation is part of the Santander Group, of Spanish origin, which is the main financial conglomerate in the euro area and which has a large presence in Latin America. The model adopted in Brazil and in other countries is the autonomous subsidiary in capital and liquidity, in line with the operating and regulatory characteristics in each market, in order to segregate the risk between the different units.
About BNDES
The Brazilian Development Bank (BNDES), a state-owned company, is the main financing institution for development in Brazil. Since its foundation in 1952, the BNDES has played a major role in stimulating the expansion of industry and infrastructure in the country. Over the course of the Bank's history, its operations have evolved in accordance with the Brazilian socio-economic challenges; today they include support for exports, technological innovation, sustainable socio-environmental development and the modernization of public administration. The Bank offers several financial support mechanisms to Brazilian companies of all sizes as well as public administration entities, enabling investments in all economic sectors. In any supported undertaking, from the analysis phase up to the monitoring, the BNDES emphasizes three factors it considers strategic: innovation, local development and socio-environmental development.
About Verde AgriTech
Verde AgriTech promotes sustainable and profitable agriculture through the development of its Cerrado Verde Project. Cerrado Verde, located in the heart of Brazil’s largest agricultural market, is the source of a potassium-rich deposit from which the Company intends to produce solutions for crop nutrition, crop protection, soil improvement and increased sustainability. |
