Anglo Asian subsidiary Azerbaijan International secures $15m loan facility with Pasha Bank
Source - SMW
Anglo Asian Mining plc said that subsidiary Azerbaijan International Mining entered into a syndicated, two-year term loan facility with Pasha Bank OJSC Azerbaijan for up to $15 million at a 7% fixed interest rate per annum to refinance the majority of its existing loans.
A total of $13.5 million of the Facility will be utilised to repay existing loans to Amsterdam Trade Bank N. V., Gazprombank (Switzerland) Ltd., Reza Vaziri (Anglo Asian CEO) and Yapi Credit Bank.
Anglo Asian CEO Reza Vaziri, said: 'This comprehensive refinancing package will replace the majority of our existing debt and have a two-fold positive impact for Anglo Asian.'
'Firstly, this will enhance our overall financial performance by lowering the cost of our debt through the reduction of interest payments.'
'It will also enable the redeployment of capital otherwise earmarked for principal repayments in 2018 to accelerate our exploration and optimisation plans, which should further improve our long-term production at our Gedabek project.'
'I would also like to note that the facility is unsecured and there are no financial covenants which demonstrate the confidence that Pasha Bank and others have in our business. This is to our knowledge the first time a syndicated loan has been arranged in Azerbaijan which again confirms the Company as a first mover in the country.'
At 9:23am: (LON:AAZ) Anglo Asian Mining PLC share price was +3.5p at 43p