Volt to issue 90bn/- bond February next year

DAILY NEWS Reporter

SEcurities Authority said yesterday they are yet to receive Volt Resources application of issuing a seven-year 40 million US dollar bond in the market. CMSA Principal Public Relations officer Charles Shirima said so far they haven’t received anything from Volt.

“CMSA hasn’t received an application, but it is a good news for our market. “Technical companies first approve their strategies of accessing finance before official coming for authorisation,” Mr Shirima told the ‘Daily News’ yesterday.

The firm said Monday that wanted to raise 40 million US dollars (almost 90bn/- ) bond next February to fund stage-one development of Bunyu Graphite mine in Mtwara. The bond expected to be listed at Dar es Salaam Stock Exchange’s Enterprise Growth Market (EGM), the bourse alternative market with tenure of seven years.

The proposed funding to complete stage-one development of Bunyu Graphite Project targeting production of 20,000 tonnes per year of graphite products commencing late 2018 or early 2019.

Volt, Australian Securities Exchange (ASX) listed company, has engaged Exotix Capital to undertake the bond issue to rise the required funding for the development of the Bunyu project. The decision followed recent meetings with targeted investment groups in Tanzania, Uganda and Kenya.

After the meeting Exotix, an international brokerage firm with a unit in Nairobi, Kenya, recommended Volt proceed with a formal bond prospectus process and listing of the bonds on DSE.

Volt and Exotix have seized the debt transaction at 40 million US dollars which will allow net project development and working capital funding of approximate 31 million US dollars after taking into account a Debt Service Reserve Account (DSRA) and costs of the issue.

Importantly, the 40 million US dollar debt sizing allows meaningful participation from Tanzanian and Ugandan Pension Funds combined with other investment groups seeking fixed income investments. This funding pathway provides for local investment in the largest graphite project in Tanzania and one of the largest in the world.

Volt’s Bunyu Graphite Project can produce graphite suitable for battery anode production, flame retardant building material uses, the developing graphene industry and traditional markets including refractories.