Dekel Agri-Vision (AIM:DKL) has completed the first tranche of a €13.3 million bond refinancing programme, drawing approximately €10.9 million from a group of existing regional institutional investors including banks, pension funds and insurance companies.
The AIM-listed palm oil and cashew processor, which operates in Côte d'Ivoire, said the proceeds will be used entirely to refinance 84.4% of its existing bond debt principal of €12.9 million.
The new bond carries a six-year term at a fixed annual interest rate of 9.5%, with a two-year grace period on principal repayments, a structure the company said better aligns debt service obligations with the group's cash generation profile.
The refinancing follows formal regulatory approval of the prospectus by the regional financial markets regulator, announced on 12 May.
A residual balance of approximately €2 million remains under the old facility, and Dekel said it is evaluating further tranches under the programme to cover the remainder, while retaining the option to repay under existing terms.
"We are delighted to complete the first drawdown under our new bond programme, which represents another important step in strengthening the Group's balance sheet and financial position," said Chief Executive Youval Rasin.
