BAA financed by $4.59 Trillion BLACK ROCK Banro

BAA financed by $4.59 Trillion BLACK ROCK

Banro Corporation announced on 27 February 2015 details of a US$100 million
financing which included the forward sale of 44,496 ounces of gold from their
Twangiza operation deliverable over the next three years and a life-of mine
gold streaming transaction relating to their Namoya mine. Banro have advised
that the use of proceeds from this financing will include the payment of the
upcoming interest due on the company's 10% senior secured notes and payment of
the accrued dividends on the company's gold-linked preference shares.

As at 27 February, the Company held the gold-linked preference shares at a 30%
discount to the implied gold price used in their valuation and the 10% senior
secured notes at a 25% discount to their last traded price (please refer to the
10 December 2014 NAV announcement, released on 11 December 2014, for further
details). On 2 March, following Banro's news release and on a recommendation
from BlackRock's pricing committee, the Board concluded that it was appropriate
to reduce the discount on the gold-linked preference shares to 15% and the
discount on the 10% senior secured notes to 10%. This gives a valuation for the
Company's investment in Banro's gold-linked preference shares and 10% senior
secured notes of £14.09m and £7.34m respectively (previous valuation £11.55m
and £6.08m), a cumulative impact to the NAV of approximately 2.14 pence. As at
2 March 2015, the Company's total exposure to Banro Corporation stood at 3.3%
of the NAV, of which the gold-linked preference shares represent 2.2% and the
senior secured notes represent 1.1%.

http://www.investegate.co.uk/blackrock-world-...4805P65AE/


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