Palm Oil Plantation and Refinery Searching for Investors

Opportunity Snapshot

  • Country: Guinea Guinea
  • Industry: Agriculture
  • Stage: Seed
  • Investment size: $50,000,000 / min. $10,000,000
  • Type of investment: Equity

Investment Opportunity

Our company is in search of a venture partner to realise a 30.000hectares of palm oil plantation with a refinery in Guinea and Liberia with an extension in Sierra Leone.

This project to be realised over a renewable 20 years period and is composed of :

1. 3,000HA oil palm plantation
2. A mill to crack
3. Fractionation
4. A refinery
5. A micro hydro-electricity plant.

Palm oil is the most traded vegetable oil in the world today. This investment project will produce the below and other associated products:

1. Refined, bleached and deodorised (RBD) palm oil
2. Refined, bleached and deodorised (RBD) palm olein
3. Refined, bleached and deodorised (RBD) palm stearine
4. Palm kernels for ties making
5. Palm kernels oil (PKO)
6. Palm kernel expellers cakes
7. Crude palm oil

This investment project is at its initial state. Interested investors can establish contact with us on Merar.

Competitive Advantage

The participants in the project are

• The project owner
• The government- land owner
• The technical partner from Malaysia/Singapore
• The financial partner needed

This project is profitable and gives us a competitive advantage in that because of the high market demand for palm products and the absence of a refinery within the entire Mano-river sub-region (Liberia, Guinea, and Sierra Leone) and beyond (Mali, Guinea Bissau, etc.).

Our 22 years of experience in Guinea, our socio-cultural position and contacts in government and other cycles etc. gives us an advantage over competitors.

Rationale for the deal

The demand for palm products and bio-products is high and profitable.

Our market survey has proven that for example:

• Guinea alone has a need for imported fully refined clear palm oil (RBD olein) of about 12,500MT per year
• Global palm oil market to exceed 100 million tonnes by 2015 and that china dominates the world palm oil market in terms of consumption
• Palm side products (PKO, RBD stearine and PFAD) are sold to OLEA-chemical industries for at least:
o RBD stearin at $600/MT
o PFAD at $500USD/MT
o PKO at $500USD/MT

Use of financing

We need $50,000,000USD for the entire investment or $10,000,000USD bridge finance to secure a credit line and handle administrative, technical and operational overhead cost.

About $15,000,000USD/$5,000,000USD are needed during the first year of the project. The balance amount will be needed as the project extends with new land for plantation.

Opportunity for the investor

We need a venture partner/ equity investor who will be entitle to 60% of the project.

With an entire investment amount of $50.000.000 we can make an annual profit of more than USD $5M yearly, after paying the interest and payback.

The cash-flow allows us to provide the entire payback within 10 year time full running (year 11). From the profit a further extension is possible to realise within the first 8 years.

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