LUSAKA – Zambia Sugar Plc, a unit of South Africa’s Illovo Sugar, has sealed a $128 million syndicated term debt to refinance money used for its three-year expansion programme.
Zambia Sugar, the southern African nation’s largest sugar producer, embarked on an expansion programme between 2007 and 2010, which helped it boost its annual capacity to 450,000 tonnes from 200,000 tonnes.
“The financing is required by the company as a partial refinancing of its $160 million 2007 syndicated facility,” the company said.
The debt facility was signed on Thursday.
Citibank N.A. and South Africa’s Standard bank acted as mandated lead arrangers and bookrunners for the transaction and a total of eight banks and one fund manager participated in the syndicate, the company said.
“The transaction was significantly oversubscribed, with over $170 million received in lender commitments, with both domestic and off-shore lenders expressing interest in participating in the facility,” Illovo said.