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Ncondezi Energy gets support 'in principle' for debt restructuring

Completion of the restructuring is expected by the end of the year. 

Ncondezi Energy Ltd -
Ncondezi aims to build up to a 1,800Mw coal-fired power station in Mozambique.

Ncondezi Energy Limited (LON:NCCL) has received support “in principle” for a restructuring of an outstanding US$4.3mln loan plus interest.

The restructuring involves a 12-month extension on existing terms, including 12% annual interest rate and the ability for lenders to swap debt for equity in part or in full at a conversion price of 10p per share

Ncondezi can also nominate to pay the loan off through the issue of shares at a 25% to 30% premium to the 30-day average price.

Half of the amount owed is to Ncondzei’s largest shareholder while 45% is held by the board and management.

The loan matures on 30 November and comprises US$2.1m principal and US$2.2m rolled-up interest.

Completion of the restructuring is expected by the end of the year. 

Hanno Pengilly, Ncondezi's chief executive said in a statement: “The restructuring will provide additional time to explore future refinancing options and the company has received several refinancing offers to date.

“Management is concentrating on further de-risking the 300MW Ncondezi power project over the next 3 to 6 months and the proposed restructuring will provide the team with sufficient time it needs to do that.”

Ncondezi aims to build up to a 1,800Mw coal-fired power station in Mozambique.

Quick facts: Ncondezi Energy Ltd

Price: 3.49999 GBX

AIM:NCCL
Market: AIM
Market Cap: £12.24 m
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