The Fiji Sugar Corporation (FSC) has restructured its debt following its inability to repay bonds owed to the Fiji National Provident Fund, amounting to $15 million and $10 million, which matured on September 30, 2019, and November 4, 2019, respectively. This situation was reported in the 2023 FSC Annual Report, which was presented to Parliament in October.
To address its working capital and capital expenditure needs, FSC secured a $50 million loan from the Fiji National Provident Fund (FNPF), backed by a government guarantee. This loan has a 15-year term and, according to the report, the guarantee was activated, leading the government to assume the repayment responsibility. An agreement has since been established between FSC and the government, stipulating a new 15-year loan term.
Repayment for the loan is set to start in January 2025, with two equal installments of $1.1 million due each year. The annual report noted that total borrowings from the government had reached $173.8 million, subject to an interest rate of five percent per annum.
In line with the Loan Repayment Agreement signed on July 15, 2015, the government loan of $173.8 million has been restructured into a long-term unsecured optionally convertible loan. The Ministry of Economy holds the discretion to convert all or part of this loan into fully paid shares in the Fiji Sugar Corporation Limited.