U.S. Government Provides US$40 Million in Capital for Gas Project in South Africa
Incorporated in the Republic of South Africa
(Registration number: 2014/195093/06)
JSE Share code: REN
Australian Business Number (ABN): 93 998 352 675
ASX Share code: RLT
(“Renergen” or “the Company”)
U.S. GOVERNMENT PROVIDES US$40 MILLION IN CAPITAL FOR GAS PROJECT IN
• $US40 million loan secured with US Government Agency, OPIC
• Important Prospectus milestone & strong endorsement of Virginia Gas Project
• Provides greater certainty of project revenue commencement in first half 2021
• Highlights increasing strategic global importance of helium
Emerging Liquefied Natural Gas (“LNG”) and helium producer, Renergen, is pleased to
announce a loan agreement with the Overseas Private Investment Corporation (“OPIC”) was
signed on Wednesday, the 21st of August 2019. The agreement with OPIC marks a significant
milestone for Renergen as it provides access to the capital required to construct the first phase
of the Virginia Gas Project (“The Project”) in South Africa. Importantly, the loan is also a major
endorsement of the Virginia Gas Project by the US Government, and the increasing
importance of securing helium, with significant supply shortages forecasted.
Commenting on the agreement, Renergen CEO, Stefano Marani said. “Today’s
announcement is special on multiple fronts, not only does the agreement provide access to
an efficient source of capital to progress the Virginia Gas Project towards production, but it is
also a huge endorsement by the US Government through the OPIC of both the Project and
the significant importance of securing helium supply.”
“We are extremely proud to be working with the OPIC as our financial partners and we look
forward to developing the Project together as we ascertain the full extent of the amount of
helium that could be produced during a time of severe supply constraint.”
“As our track record has demonstrated over the last two years, we remain focused on our
philosophy of setting achievable milestones and delivering on our commitments, as the
Company develops the Virginia Gas Project.”
The Company first announced the OPIC’s intention to finance the Virginia Gas Project in
February 2019, prior to the Company’s listing on the Australian Stock Exchange. The
commitment was subject to execution of a final binding agreement between the parties by no
later than the end of September 2019. Having executed the final binding agreement, the
Company will receive the first disbursement from the loan in the coming days.
The loan has a 12-year term, with a grace period before principle is due of just less than 3
years, thus taking into consideration the construction and commissioning time. The loan is
denominated in USD and was fixed against the US Treasury curve, providing the Company
with very favourable terms for long-term borrowing given in the current low interest rate
“OPIC is pleased to partner with Renergen and provide financing to support private sector-led
economic development in South Africa, expand trade and commercial ties between the U.S.
and Africa, and ultimately increase the global supply of helium,” said OPIC Vice President for
Structured Finance Tracey Webb.
The signing of the loan agreement follows the announcement of the appointment of EPCM
Holdings subsidiary EPCM Bonisana (Pty) Ltd as the Engineering, Procurement and
Construction (“EPC”) contractor to commence construction of the Virginia Gas Project. The
collective completion of these agreements provides a greater degree of certainty on the
commencement of revenue from the Project, which is now anticipated in the first half of 2021.
The Company will now focus on commencement of construction activities, whilst finalising
parameters around the drilling targets. Updates will follow in due course.
August 21, 2019
For more on the announcement, see the interview with FNN:
For Media, contact Instinctif (Keagile Makgoba)
+27 11 447 3030
Date: 21/08/2019 08:59:00
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