Zenith Energy has announced that its Italian subsidiary has received approval to be awarded a legally binding loan facility for an amount of approx. EUR 300,000 from an Italian governmental entity.
The Loan attracts an interest rate of 0.85 per cent, has a grace period of 24 months during which only the interest will be payable, normal financial covenants, and a duration of 6 years.
Under the terms of the Loan, all funds to be disbursed are to be utilised for the purpose of the establishment of commercial activities in Africa, specifically in the Republic of Congo and the broader West Africa region.
The Company plans to file an application for a second loan facility of this kind, designed to assist Italian commercial enterprises in the current challenging financial climate, for the purpose of making infrastructural investments in its Italian natural gas, condensate and electricity production operations.
Andrea Cattaneo, Chief Executive Officer of Zenith, commented:
'We are pleased to have received approval for this Loan, which has very favourable conditions and will be used to further increase our investment in Africa at this time, specifically in the Congo and the broader West Africa region. Indeed, as publicly announced on June 16, 2020, we are currently in negotiations with two pan-African financial institutions for a loan facility that will be used to fund the acquisition and development of Zenith's growing portfolio in West Africa. I look forward to updating shareholders on progress in due course.'
Source: Zenith Energy