viewVerde AgriTech Plc

Verde Agritech hails major funding milestone - with BNDES loan

The debt arrangement will be fulfilled by Santander, the group said in the filing

The product is of huge benefit to farmers, Verde reckons
Verde Agritech PLC (TSE:NPK) has reached a major milestone - sealing a debt financing deal for R$1.04mln with the Brazilian Development Bank (BNDES) to build a facility to produce its Super Greensand fertiliser.
The debt arrangement will be fulfilled by Santander Bank because direct operations with BNDES requires a minimum financing of $10mln and Verde requires less funds for this stage of mine and plant construction.

WATCH: Verde AgriTech's fertiliser 'highly disruptive and beneficial to farmers'

"It is reassuring to receive funding approval from Brazil's Development Bank and direct support from Santander,” said Verde's President & CEO, Cristiano Veloso.
“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.”
The loan term is 60 months and the total interest rate is 12.26%.
Last year, the firm announced the results of its pre-feasibility study (PFS), for its flagship Brazilian project.
That showed a post-tax net present value discounted at 8% of US$ 1.98bn and internal rate of return of an impressive 290%. 
In March this year, Verde announced a turnkey agreement for the construction of a processing plant with expected production of 45 tons per hour of Super Greensand trademark. 
The engineering design and site layout were conceived to allow future expansions. The plant is expected to start production in the second half of 2018.

Quick facts: Verde AgriTech Plc

Price: 0.53 CAD

Market: TSX
Market Cap: $24.87 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Verde AgriTech Plc named herein, including the promotion by the Company of Verde AgriTech Plc in any Content on the Site, the Company receives...



Verde AgriTech launches B2B platform called Verde Marketplace

Fertilizer group Verde Agritech PLC (TSE:NPK, OTCQB:AMHPF) CEO Cristiano Veloso tells Proactive how the company has reached another milestone in its evolution, a free business-to-business (B2B) platform to sell food called Verde Marketplace. Veloso says farmers will be able to use...

on 11/08/2018

2 min read