PPC reschedules DRC cement plant debt
Construction materials provider PPC has further improved its liquidity position by finalising a capital repayment moratorium with funders of the group’s Democratic Republic of Congo (DRC) operation, limiting PPC’s capital requirements to only interest payments from January this year to January 2020.
PPC owns 69% of PPC Barnet DRC, while its local partner, Barnet Group holds 21% and the International Finance Corporation (IFC) 10%.
PPC Barnet DRC has completed the construction of its one-million-tonne-a-year integrated cement plant for around $300-million. The plant is near Kimpese in the Kongo Central province in western DRC, 230 km south-west of the capital Kinshasa.
The new cement plant is 60% project debt funded by the IFC and Eastern and Southern African Trade and Development Bank (TDB).
PPC has first sponsorship obligation under a project funds and share retention agreement.
An agreement has now been reached with the IFC and TDB regarding their scheduling of the project’s debt, with PPC granted a two-year capital repayment moratorium.
An additional interest rate spread of 2.5% has also been negotiated, making the new rate six-month London Interbank Offered Rate, plus 975 basis points.
“This latest development is a major achievement in addressing our capital structure. The rescheduling of debt firstly reduces the capital requirements by PPC Barnet DRC from PPC.
“Secondly, it will improve cash flows for the DRC business which, in turn, will allow the business additional liquidity during this ramp-up phase,” PPC CFO Tryphosa Ramano explained.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
In 1958 John Deere Construction made its first introduction to the industry with their model 64 bulldozer.
VISIT SHOWROOM
South African leader in Steel -Racking, -Shelving, and -Mezzanine flooring. Universal has innovated an approach which encompasses conceptualising,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
