Illovo Malawi secures 45 million loan to ease 72 million debt and protect operations amid foreign exchange shortage.
Chairman Jimmy Lipunga leads a debt relief plan, shielding Illovo from US-dollar liabilities tied to imports and raw materials.
Loan backed by Sucoma Holdings injects FX liquidity, safeguarding Malawis biggest sugar producer against cash flow pressures.
Illovo Sugar Malawi, the countrys biggest sugar producer, chaired by Jimmy Lipunga has secured a 45 million shareholder loan to ease its debt load and protect operations from Malawis persistent foreign exchange shortages. The facility, backed by majority shareholder Sucoma Holdings, will cover part of Illovos 72 million liabilities, most of which are owed to foreign suppliers and sister companies.
Board Chairman Jimmy Lipunga told shareholders at an Extraordinary General Meeting in Blantyre that the loan would reduce Illovos reliance on US-dollar-denominated imports of inputs, machinery, and raw materials.
He noted that the company still has the option to draw down an additional 15 million if conditions worsen. We thought of restructuring our working capital to reduce the burden of US-denominated debts and interest. This is a better alternative than converting debt into equity, which carries dilution risk, Lipunga said.
