The Fiji Sugar Corporation has restructured its debts due to missed bond repayments of $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 outlined in the 2023 FSC Annual Report presented in Parliament in October.
To address its working capital and capital expenditure needs, FSC received a government-guaranteed loan of $50 million from the Fiji National Provident Fund. This loan carries a 15-year term and is backed by a government guarantee.
According to the report, the guarantee was invoked, placing the repayment obligation on the Government. An agreement has been established between FSC and the Government, extending the loan duration to 15 years. Repayments are set to begin in January 2025, with two annual installments of $1.1 million.
The Annual Report noted that total borrowings from the Government amount to $173.8 million, with an interest rate of five percent per annum. As part of the Loan Repayment Agreement dated July 15, 2015, the $173.8 million loan from the Government was restructured into a long-term, unsecured optionally convertible loan. The Ministry of Economy retains the discretion to convert all or part of this loan into fully paid shares in Fiji Sugar Corporation Limited.