Aim-listed Ncondezi Energy has reached formal agreement to amend its $5.1-million loan, which received an extended maturity date to November 2019.
Before a restructuring process started, the loan would have matured in September.
Board members Michael Haworth, Estevao Pale and Chris Schutte in August signed commitments to restructure the loan, agreed by other lenders. All lenders, at the time, indicated that they would not call in the loan while the restructuring was being finalised.
The agreement between Ncondezi and the lenders includes a 12% interest rate paid at maturity, which is a reduction in effective interest rates historically incurred on the loan.
Ncondezi has the flexibility to voluntarily prepay the loan in full or in part.
The lenders have the option to swap debt for equity in full or in part at a conversion rate of 10p apiece until a month before the loan’s maturity date.
The loan restructuring allows the company to progress various alternative refinancing options, while meeting expected additional de-risking milestones.
Meanwhile, Ncondezi anticipates submitting a work programme and timetable of its 300 MW power project and integrated coal mine in Tete, Mozambique, to the Ministry of Mineral Resources and Energy, as well as State-owned Electricity de Mozambique, before the end of November.