| Tue 26 Sep 2006, 8:50 | | Lonrho Africa - Luba Freeport Mandates Debt Financ |
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LAF
LOLAF
Lonrho Africa - Luba Freeport Mandates Debt Financing Organisation
Lonrho Africa Plc
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813)
("Lonrho Africa" or "the Company")
LUBA FREEPORT MANDATES DEBT FINANCING ORGANISATION
Lonrho Africa is pleased to announce that Luba Freeport Ltd ("Luba"), Lonrho
Africa"s 63% subsidiary, has mandated The Netherlands Development Finance
Company ("FMO") to provide up to US$30m of debt financing for the development of
its port facilities in Equatorial Guinea. The provision of the debt facility is
subject to the completion of satisfactory due diligence and the formal approval
of FMO.
FMO, the international development bank of the Netherlands, was founded in 1970.
It invests risk capital in companies and financial institutions in developing
countries. FMO considers infrastructure as the backbone of economic
development.
"The appointment of FMO, a leading African debt provider, is a vital step in
realising the full potential of the Luba Freeport," said David Lenigas, Joint
Chairman and CEO of Lonrho Africa. "In order to ensure that the development of
Luba is completed efficiently, we have recently commissioned Jurong to undertake
the design and construction work while simultaneously progressing funding
negotiations."
This agreement follows Luba"s recent announcement that Mobil Equatorial Guinea
Inc. ("MEGI") and Luba have agreed on terms to build a 60,000 square metre
logistics facility at Luba. This world-class facility will be the new base for
MEGI and will include warehousing and office space, marine hose storage, an API
(American Petroleum Industry) specification pipe-yard, inspection shed, wash bay
and storage area. Construction is expected to be completed by 30 June 2007 when
the contract will become effective for a period of seven years with an
additional three one-year extension options. The value of the contract amounts
to more than US$30 million over the initial seven-year period.
In July, Luba appointed the world"s premier port facilities development group,
Jurong Primewide International ("Jurong"), which has been mandated to provide
master design and planning services for the substantial expansion of the
infrastructure and facilities of the Luba quayside and 50 hectares of Freeport.
In addition to a fully integrated, short-term expansion feasibility study Jurong
will provide long-term development plans for Luba"s expansion. Following
completion of the feasibility study, Jurong will commence construction of the
facilities through an Engineering, Planning and Construction (EPC) contract.
The planned expansion will increase the operational capacity of the Freeport and
will provide improved services, facilities and logistics to all existing and
future clients. Luba Freeport"s major contracted clients include: Amerada Hess,
Mobil Equatorial Guinea, Baker Hughes, Marathon, LOTEG, Schlumberger, Nalco,
SBM, Devon Energy, Petronas, Noble Energy and MI Equatorial Guinea.
In addition to its Freeport status and strategic geographic location, Luba
benefits from naturally occurring deep water conditions handling both oil field
supply vessels and ocean-going ships. As part of the expansion, Luba will push
the jetty and facilities out towards the sea to give up to 18m of draft which
will facilitate the servicing of the largest ocean-going vessels.
25 SEPTEMBER 2006
South African sponsor to Lonrho Africa Plc
Java Capital (Proprietary) Limited
Date: 26/09/2006 08:50:55 AM Produced by the JSE SENS Department
