The Fiji Sugar Corporation has restructured its debt after defaulting on bonds repayment to the Fiji National Provident Fund amounting to $15 million and $10 million, which were due on September 30, 2019, and November 4, 2019, respectively. This information was presented in the 2023 FSC Annual Report, which was submitted 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 support its working capital and capital expenditures. This loan is set for a 15-year term and is secured by the guarantee from the government.
As per the report, the government has assumed the repayment responsibility after the guarantee was called, leading to the establishment of a new agreement between the FSC and the Government. Under this agreement, the loan repayments are scheduled to begin in January 2025, consisting of two equal installments of $1.1 million each year.
The Annual Report indicates that total borrowings from the Government amount to $173.8 million, with an interest rate of five percent per annum. Following the Loan Repayment Agreement dated July 15, 2015, the loan from the Government 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 amount into fully paid shares in the Fiji Sugar Corporation Limited.