Obtala directors lend money to Hong Kong arm

Africa-focused agribusiness Obtala said its Hong Kong subsidiary had sourced a new loan to fund its timber trading activities.

An initial $1m has been funded in the form of a 10-year loan to Obtala with an interest rate of 11.5% per annum.

The loan was provided by five directors of the company, including chief executive Paul Dolan.

The loan is complementary to any existing external trade finance facilities and its total size and terms would be announced once finalized, the company said.

"We are close to the completion of due diligence with an external trade finance provider that can best support our working capital requirements, not only for timber trading but also from the increased levels of production we are expecting in both Gabon and Mozambique in 2018," Dolan said.

"This combination of internal and external trade finance will allow us to optimize profitability while growing the timber trading division during 2018."