The deal can be converted into shares
Power generation company developing clean energy solutions for Botswana the sub-Saharan region, Tlou Energy, has signed a convertible note agreement worth P50 million with Botswana Public Officers Pension Fund (BPOPF).
The funds from the convertible note agreement are to be used to finance construction of transmission line infrastructure to connect Tlou’s Lesedi Project to the Botswana Power Corporation power grid and to fund installation of generation assets and ancillary costs to facilitate power generation and sale of electricity.
“The note has a fixed interest rate of 7.75 percent p.a. payable every six months,” said Tlou Energy in a statement released recently. “Interest may be capitalised for the first 18 months. The note can be converted to ordinary shares on exercise of the conversion option by BPOPF at a 10 percent discount to the weighted average traded price of the company’s shares on the highest average volume exchange of the BSE/ASX/AIM over the 90 trading days prior to the maturity date|.
“Upon conversion of the note into fully paid ordinary shares, the shares will rank pari passu with the company’s existing shares. The company shall obtain all regulatory and shareholder approvals as applicable which shall be conditions precedent to the coming into force and effect of the note and any obligations placed upon BPOPF to subscribe for the note.”
Commenting on the deal, the Managing Director of Tlou Energy, Tony Gilby, expressed his company’s is gratitude to BPOPF for their continued and unwavering support of the company, saying he looked forward to working together in the long-term to develop the Tlou to its full potential and bring a return to BPOPF and all Tlou shareholders. “With funds now in place along with required approvals and agreements to commercialise our gas, we look forward to pushing on with development,” Gilby added.
Said the CEO of BPOPF, Moemedi Malindah: “Tlou Energy is building vital assets and infrastructure for Botswana. We are committed to long-term support of the project and look forward to its continued success. This is a long-term strategic investment, and we are very pleased to be able to support the company and help bring clean reliable power and sustainable employment to Botswana.”
BPOPF is the biggest pension fund in Botswana and Tlou’s largest shareholder. The Fund was registered in 2001 and has experienced phenomenal growth since its inception.