ILLOVO SUGAR LIMITED SIGNED A 605BILLION KWACHA SYNDICATED TERM DEBT FACILITY FOR ITS ZAMBIA SUGAR PLC SUBSIDIARY

ILLOVO SUGAR LIMITED SIGNED A 605BILLION KWACHA SYNDICATED TERM DEBT FACILITY FOR ITS ZAMBIA SUGAR PLC SUBSIDIARY.

THE TRANSACTION WAS ARRANGED BY CITIBANK AND THE STANDARD BANK OF SOUTH AFRICA.

THE FINANCING IS REQUIRED BY THE COMPANY AS A PARTIAL REFINANCING OF ITS 5160 MILLION 2007 SYNDICATED FACILITY, WHICH WAS ARRANGED TO FINANCE ZAMBIA SUGER’S MAJOR CAPACITY EXPANSION PROGRAMME UNDERTAKEN BETWEEN 2007 AND 2010.

THE EXPANSION PROGRAMME INCLUDES THE AGRICULTURAL AND FACTORY EXPANSION INVOLVING ZAMBIA SUGAR’S SUPPLYING GROWERS HAS SINCE RESULTED IN ANNUAL SUGAR PRODUCTION CAPACITY INCREASING FROM 200,00 TONS TO 450,000TONS.

AND SPEAKING AT THE SIGNING CEREMONY THIS MORNING COMMERCE , TRADE AND INDUSTRY  DEPUTY MINISTER DR LWIPA PUMA SAID GOVERNMENT HAS TAKEN PARTICULAR INTEREST IN THE SUGAR SECTOR AS IT CONTRIBUTES IMMENSELY TO THE ECONOMIC GROWTH AND UPLIFTING THE LIVING STANDARDS OF THE PEOPLE.

DR PUMA FURTHER IMPLORED ON ZAMBIA SUGAR TO CONTINUE INVESTING IN THE SECTOR DUE TO THE POTENTIAL FOR EXPORTS THAT SUGAR HAS BOTH REGIONALLY AND ON THE GLOBAL MARKETS.

AND SPEAKING AT THE SIGNING CEREMONY TODAY ZAMBIA SUGAR MANAGING DIRECTOR STEVE LANGTON SAID THE LOAN FACILITY IS AN INDICATION OF THE CONFIDENCE THAT BANKS HAVE IN THE COMPANY.

AND SOUTHERN PROVINCE MINISTER ELIJAH MUCHIMA EXPLAINED THAT THE EXPANSION PROGRAMME IS INDICATION THAT ZAMBIA IS A RISK FREE COUNTRY DESPITE THIS BEING AN ELECTION.

HE ADDED THAT WHAT IS HAPPENING ON THE POLITICAL CORRIDORS IS JUST A PASSING PHASE AND WILL NOT HAVE ANY NEGATIVE IMPACT ON THE COUNTRY’S ECONOMY.

AND BANK OF ZAMBIA ACTING GOVERNOR AUSTIN MWAPE SAID THE BANK RECOGNIZES SYNDICATION OF LOANS AS AN INNOVATIVE AVENUE THROUGH WHICH BANKS CAN FINANCE LARGE AND LONG TERM PROJECTS THEREBY ENHANCING ECONOMIC GROWTH AND DEVELOPMENT.

A TOTAL OF 8 BANKS AND ONE FUND MANAGER PARTICIPATED IN THE LOCAL SYNDICATION.

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