Anglo Asian Mining PLC, a gold, copper, and silver producer in Azerbaijan, has announced that its subsidiary, Azerbaijan International Mining Company Limited (AIMC), has signed a Vendor Financing Facility Agreement with Caterpillar Financial Services Corporation (Cat Financial). The agreement involves the refinancing of a fleet of Cat underground mining equipment for AIMC's new Gilar mine, marking the first time Cat Financial will provide vendor financing to a customer in Azerbaijan and the first deployment of Cat underground equipment in the country.
The Facility, amounting to $3,708,000, will be guaranteed by Anglo Asian Mining PLC and will carry an interest rate of CME Term SOFR rate plus a margin of 2 per cent. The repayment terms include quarterly interest payments and 12 equal quarterly installments for the capital. The equipment purchased under the agreement will serve as security, and there are net debt to EBITDA and net worth covenants in place. Prepayment is allowed subject to a fee.
Several material conditions precedent, such as the registration of the pledge agreement, confirmation of fleet insurance, and a revised service agreement for the equipment, must be completed before the loan drawdown. Anglo Asian Mining's CEO, Reza Vaziri, expressed the significance of the agreement, stating, "This transaction is a first for Caterpillar within Azerbaijan, and we are proud that this is also its first agreement of this type in Azerbaijan."
The company also provided contact information for further inquiries and highlighted its strategic plan for growth, aiming to transition to a multi-asset, mid-tier, copper, and gold producer by 2028. This growth plan includes bringing four new mines into production during the period 2024 to 2028 at Zafar, Gilar, Xarxar, and Garadag.