South Africa-based PPC has successfully refinanced its debt and is close to finalising its restructuring. Therefore, the company will not require a capital raise, said its CEO, Roland van Wijnen.

The new debt facilities of ZAR2.1bn have an extended maturity profile with the long-term facility of ZAR1.5bn being repayable over 3-5 years. The margins were reduced across all facilities to reflect PPC’s improved credit risk profile.

“The organisation is now in calmer seas after a hectic 18 months, including the COVID-19 pandemic, and the organisation is now focussed, and ready to help the economy to grow by playing its part in the country’s infrastructure development programme,” Mr Van Wijnen said.

The group would use the new debt to re-finance the drawn portions of existing facilities, leaving headroom and financial flexibility over the next five years,” he added.

A capital restructuring of the company’s operations in  Democratic Republic of Congo last March had terminated PPC’s obligations to make further deficiency funding to PPC Barnet in the country. The restructuring of PPC Barnett’s balance sheet will be effective by mid-December.

Cement sales growth in South African and Botswana informal and rural markets continued to outpace other market segments and after seeing a slower pick-up than in inland markets, coastal markets are now reporting a double-digit volume growth with most of the recovery occurring after July 2021. Meanwhile, PPC Zimbabwe continued to trade ahead of expectations.

Sales volumes in South Africa and Botswana for the six months ending 30 September 2021 are forecast to increase by 10-13 per cent YoY with double-digit volume growth in most business units. When compared with the equivalent period in 2019, total cement sales are expected to advance by 6-9 per cent.