Announcements - 2nd November 2004
Kenmare Announces Completion of Equity Financing Raising Stg£ 53 million
Further to the announcement made on 28 September 2004, Kenmare is pleased to announce that it has completed the arrangements for the equity financing of the Moma Titanium Minerals Project. The final component of the Supplemental Placing is now complete.
This placing brings the total funds raised by Kenmare under its Moma Project Equity Financing to the targeted Stg£ 53 million. A total of 40,380,576 Ordinary Shares, with 10,095,144 Warrants attached on the same basis and terms as under the original Placing and Open Offer, have been agreed to be issued at Stg16p per share.
Of these Ordinary Shares and Warrants, an amount representing US$10 million (34,340,659 Ordinary Shares and 8,585,164 Warrants) has been placed with Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. ("FMO"), which is also a Lender to Kenmare's Moma Project, and the balance have been subscribed for by other institutional investors. The remaining underwriting arrangements in respect of the Supplemental Placing referred to in the announcement of 27 July, 2004 have therefore unwound as scheduled, without recourse to the underwriters.
As a result of FMO's equity investment, some of its commitments as a subordinated lender to the Moma Project have been taken up by Emerging Africa Infrastructure Fund Limited ("EAIF") by way of subparticipation. Furthermore, the FMO subordinated debt facility (originally Euro 15 million facility) has been amended to a two-tranche loan facility comprising a fixed-rate Euro tranche of Euro 7.1 million and a floating-rate US Dollar tranche of US$10 million, which Dollar tranche will be funded by way of EAIF's subparticipation arrangements with FMO. In addition, EAIF has agreed to provide senior debt to the Project under a floating-rate US$5 million facility, for which purposes KfW Bankengruppe ("KfW") has agreed to reduce its commitments in the senior debt package by the same amount. The costs/fees associated with these arrangements are within the headroom afforded by the Company's cash resources under its Financing Plan.
Charles Carvill, Kenmare's Chairman said:
About EAIF
EAIF is a multi-donor supported debt fund created to facilitate economic growth and development through the provision of long-term debt finance to private sector infrastructure projects in sub-Saharan Africa. EAIF is managed by a private sector joint venture between Standard Bank Group, FMO and Emerging Markets Partnership.
Charles Carvill
Chairman
2nd November 2004
For further information:
Michael Carvill
Managing Director
+353-1-671 0411
+353-87-674 0110
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