The Fiji Sugar Corporation has restructured its debt after missing payments on bonds totaling $15 million and $10 million owed to the Fiji National Provident Fund, which matured on September 30, 2019, and November 4, 2019, respectively. This situation was detailed in the 2023 FSC Annual Report, presented to Parliament in October.
To address its financial needs, the FSC secured a $50 million loan from the FNPF, backed by a government guarantee, to cover working capital and capital expenditures. This loan has a term of 15 years.
According to the report, the government guarantee has been activated, leading to the government assuming the payment responsibilities. A new agreement has been established between the FSC and the government, extending the loan repayment period to 15 years. Payments are set to start in January 2025, with two annual installments of $1.1 million.
The Annual Report also noted that the total borrowings from the government amount to $173.8 million, accruing interest at a rate of five percent per year. Under the Loan Repayment Agreement (LRA) dated July 15, 2015, this $173.8 million loan was restructured into a long-term unsecured optionally convertible loan, allowing the Ministry of Economy the option to convert part or all of the loan into fully paid shares in the Fiji Sugar Corporation Limited.