The Fiji Sugar Corporation has reorganized its debt following its inability to repay two bonds totaling $25 million owed to the Fiji National Provident Fund. These bonds, worth $15 million and $10 million, were due on September 30, 2019, and November 4, 2019, respectively. This situation was addressed in the 2023 Annual Report of the Fiji Sugar Corporation, which was presented in Parliament in October.
To support its operational and capital expenditure needs, the Fiji Sugar Corporation obtained a government-backed term loan, securing $50 million from the Fiji National Provident Fund. This loan has a 15-year term and is secured by a government guarantee.
According to the report, the government guarantee was activated, leading to the government assuming the repayment obligations. An agreement has been established between the Fiji Sugar Corporation and the government, extending the loan term to 15 years. Repayment of the loan is set to begin in January 2025, with two annual installments of $1.1 million.
The Annual Report noted that total borrowings from the government have reached $173.8 million, with an interest rate of five percent per annum applied. Following the Loan Repayment Agreement dated July 15, 2015, this $173.8 million loan from the government has been restructured and transformed into a long-term unsecured optionally convertible loan. The Ministry of Economy retains the discretion to convert either the full amount or part of the loan into fully paid shares in the Fiji Sugar Corporation Limited.