PPC improves liquidity position

PPC has rescheduled the debt related to its new plant in the Democratic Republic of Congo, improving its liquidity position.

The South Africa-based cement producer has also secured a two-year capital repayment moratorium. As a result, the total capital requirements for PPC Barnet DRC would be limited to interest payments from this month up to January 2020.

PPC has a 69 per cent stake in PPC Barnet DRC, a joint venture with Barnet Group, which has a 21 per cent shareholding, and the International Finance Corp (IFC) 10 per cent.

The new 1Mta cement plant near Kimpese in the Kongo Central Province represents an investment of US$300m, of which 60 per cent was project-debt funded by the IFC and the Southern African Trade and Development Bank.

Tryphosa Ramano, the chief financial officer of PPC, said the rescheduling of the group's debt in the DRC was a major achievement in handling PPC's capital structure.
"The rescheduling of debt firstly reduces the capital requirements by PPC Barnet DRC from PPC. Second, it will improve cash flows for the DRC business, which will allow the business additional liquidity during this ramp up-phase."