Published by Jack Roscoe,
Editorial Assistant
World Fertilizer,
Minbos has announced that the Fundo Soberano de Angola, the Angolan Sovereign Wealth Fund (FSDEA), has confirmed its Board’s approval for a US$10 million strategic investment in Minbos, to support the construction of the Cabinda Phosphate Fertilizer Project (CPFP).
FSDEA has provided Minbos with written approval of the Company’s proposal, which contemplated a US$10m investment at the greater of A$0.08 per Minbos share or the volume-weighted average price for Minbos shares for the 10 days immediately prior to execution of definitive transaction documents. Formalities to finalise the strategic investment will commence immediately and are subject to all the normal regulatory and other approvals.
FSDEA completed its due diligence in co-operation with the Industrial Development Corporation of South Africa Limited (“IDC”) and understands its investment will enable the Company to meet IDC’s condition precedent of raising $US11M for equity funding to support the development of the CPFP.
Minbos expects to finalise the balance of IDC’s conditions precedent for the US$14 million construction funding provided by the IDC in the coming weeks as announced on 10 July 2024.
Managing Director Lindsay Reed commented: “It is pleasing that the Fundo Soberano de Angola will both assist and benefit in the development of agricultural initiatives that will alleviate poverty, improve food security and durable broadening of the economy. The Sovereign Wealth Fund and IDC share the same interest in developing the Cabinda Phosphate Fertilizer Project for domestic and export sales. This will strengthen CPFP’s financials and manage our customer risk profile.”
Snr Armando Manuel, Chairman of FSDEA commented: “Our board members have carefully reviewed your proposal and agreed that this investment will strategically enhance our profitability prospects. This decision demonstrates our commitment to the development of Angola as a country specifically in key sectors that contribute to the diversification of the economy. We look forward to a successful partnership and are enthusiastic about the project.”
Read the article online at: https://www.worldfertilizer.com/project-news/12082024/angolan-sovereign-wealth-fund-board-approval-to-invest-us10-million-in-minbos/
