The Fiji Sugar Corporation has successfully restructured its debt following an inability to repay bonds owed to the Fiji National Provident Fund, which totaled $15 million and $10 million and were due on September 30 and November 4, 2019, respectively. This situation was detailed in the 2023 Annual Report of the Fiji Sugar Corporation, which was presented in Parliament last month.
The restructuring included a term loan backed by the government, enabling the Fiji Sugar Corporation to secure a $50 million loan from the Fiji National Provident Fund to satisfy its working capital and capital expenditure needs. This loan, with a duration of 15 years, is backed by a government guarantee.
According to the report, the government has assumed responsibility for the loan after the guarantee was invoked, and a new agreement has been established between the Fiji Sugar Corporation and the government, extending the loan term to 15 years. Repayment is set to begin in January 2025, consisting of two equal installments of $1.1 million annually.
The Annual Report also noted that the total borrowings from the government have reached $173.8 million, accruing interest at a rate of five percent per year. In accordance with a Loan Repayment Agreement dated July 15, 2015, this $173.8 million loan has been restructured into a long-term unsecured optionally convertible loan. The Ministry of Economy has the discretion to convert either all or part of this loan into fully paid shares in the Fiji Sugar Corporation Limited.