Woodbois (WBI) , a timber company, said it has entered a US$5m trade finance facility with a Dubai family office. The key terms of the facility include a repayment of principal by May 30, 2027, an interest of 9.5% pa payable monthly, and lender approval of each request for trade finance.
Woodbois said the new facility would provide it with the necessary capital to expand trading volumes, leverage new opportunities in the hardwood sector, commit to larger and more frequent transactions, improve logistics and supply chain efficiencies, and strengthen its position in the global timber market.
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A positive announcement from Woodbois of a new finance facility to help the company grow. The facility was initially announced in February 2024, with today's update detailing better terms that originally expected.
The new money will allow Woodbois to rapidly expand its 3rd party and own production trading, expected to significantly contribute to the company's drive to profitability this year. The funds will give WBI higher financial flexibility and enable it to achieve much greater activity and revenues in Gabon.
The deal was made in keeping with WBI's commitment to sustainable growth and maintaining a high standard of environmental stewardship, for which the company had to take extra time to find the right partner.
Woodbois is also exploring other capital financing options to allow it to upgrade machinery, introduce a second shift, and secure certification, among other growth initiatives.
Overall, the facility is a significant milestone in WBI's growth trajectory. It will improve WBI's financial stability and enhance its ability to capitalise on market opportunities faster, helping it become cashflow positive more quickly, while laying the foundation for material future growth, including M&A.
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