The Fiji Sugar Corporation (FSC) has resorted to borrowing to facilitate two cane payments, according to its 2024 annual report published last week. The report reveals that FSC obtained a temporary overdraft facility worth $25 million from Home Finance Company Pte Ltd, operating as HFC Bank, to assist with the third cane payment for the 2023 season. This borrowing was backed by a government guarantee.
The report notes that the HFC operating account maintained an overdraft facility of $30 million and a temporary $25 million facility throughout the year. These overdraft provisions are secured by a government guarantee as well as a floating charge over all of the Corporation’s assets.
Additionally, FSC secured a term loan of $20 million from the Fiji Development Bank on May 23, 2024, to cover the fourth cane payment for the 2023 season, also secured by a government guarantee. This loan is structured for a five-year term with monthly repayments amounting to $400,000, which includes principal, interest, stamp duty, and bank fees. The term loans from the Fiji Development Bank are secured against a government guarantee and a bill of sale for the assets acquired through these loans.