Dekel Agri-Vision (LSE:DKL), a West African agriculture company developing the Ayenouan palm oil mill and the Tiebissou cashew plant in Cote d'Ivoire, has received regulatory approval for a prospectus to issue a new bond of up to €13.3 million and has commenced the book build for the New Bond.
The New Bond carries a six-year term, a two-year principal grace period and a 9.5% interest rate, and on issuance will replace the group's existing €3.8 million bond (7.75%, c.2.5 years remaining) and €9.2 million bond (7.25%, c.4 years remaining).
"We are very encouraged by the progress made on our bond restructuring, which represents a key step to better align our debt profile with the ongoing growth of our Cashew Operation, alongside the consistent performance of our Palm Oil Operation," said Youval Rasin, Dekel's Chief Executive Officer.
The extended maturity profile and grace period are expected to better align debt repayments with forecast cash generation from the Tiebissou cashew project while supporting stable profitability at the Ayenouan palm oil mill.
The New Bond builds on a 26 June 2025 restructuring with other lenders that included converting a €1.2 million loan from CEO Youval Rasin into equity.
Alongside the bond, the board is actively evaluating corporate finance options including potential project-level equity injections, expressions of interest for the sale of operating subsidiaries and, if required, a sale of the Group, with no certainty any transaction will be concluded.
