SA sugar producer makes funding history in Zambia

Illovo Sugar has announced the successful closure of a $160-million debt facility for its Zambia Sugar subsidiary.

This landmark transaction is the largest kwacha-denominated facility raised for a Zam- bian corporate borrower and was arranged by Citi Bank and Standard Bank as the mandated lead arrangers.

Zambia Sugar, the largest sugar cane growing and sugar producing company in the Southern African country, is undertaking a $205-million expansion programme (with the debt component amounting to $160-million).

Zambia Sugar says the expansion will increase the land under cane by 10 000 ha, which will see sugar production nearly doubling from the 245 000 t produced last year, to 440 000 t in the 2012/13 season.

The two-tranche transaction comprises an onshore-placed syndicated portion with local banks and pension funds, as well as an offshore placement.