CEMENT
PPC’s debt rescheduling at DRC plant ‘a solid move’
It gives the cement producer some breathing space and improves the DRC business’s liquidity position, says analyst
PPC says it has finalised a capital-repayment moratorium with funders of its new plant in the Democratic Republic of Congo (DRC), improving liquidity. It says that as conveyed at its interim results presentation in November 2017, total capital requirements for its PPC Barnet DRC operation will be limited to interest payments from January 2018 to January 2020. But there will also be a new additional interest-rate spread of 2.5% on resuming capital repayments. PPC owns 69% of PPC Barnet DRC, with DRC local partner Barnet Group owning 21%, and the International Finance Corporation 10%. "This latest development is a major achievement in addressing our capital structure," PPC chief financial officer Tryphosa Ramano said on Friday. "The rescheduling of debt firstly reduces the capital requirements [and] will improve cash flows for the DRC business, which in turn will allow the business additional liquidity during this ramp-up phase." The new plant is 60% project debt funded by the Interna...
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