Summary of my 2 h discussion with S last evening in Stockholm: (post 2)
Megafarm status of financing:
It was the leader of the bank syndicate of five banks that ordered the credit rating report/study from Dun & Bradstreet (D&B). Apparently, it was not appreciated that SIAF released this information since they didn’t ask the bank in advance. Since then, the lead bank has conducted several other studies operational DD (Tri-way outstanding vs peers) etc, not released to the market, which I understood are finalized by now. Solomon mentioned that he hopes that he could release the reports in a not very distant future. As I understood it, they have been answered an extreme amount of questions from an auditor that was hired by the lead bank and that they only have one question left.
I interpret the discussions that the will finalize this within a couple of days. Then the lead bank will need to sign the agreement at the head office. My bet, within the next 2 months, Tri-way will obtain financing of USD 150m and that Tri-way will use some of this to settle debt to SIAF.
Regarding the loan from Agricultural Bank of China, apparently this is a working capital credit facility that can only be used utilized in China and not to finance the CAPEX for the mega farm.
I’ll get back with some exciting stuff regarding CA and performance of the mega farm. Capital award is the reason why you don’t want to sell your SIAF shares after the X-date of the Tri-way distribution btw.
