Energy Fiji Ltd has established a $335 million line of credit under a Syndicate Banking Facility with ANZ, BSP and WBC banks.

This, according to CEO Hasmukh Patel’s statement in the EFL 2022 annual report that was tabled in Parliament recently.

He said this credit facility was the largest in Fiji. “EFL is planning to review the syndicate banking facility in 2023,” Mr Patel said.

“The current Syndicate Banking Facility signed with ANZ, BSP and WBC Banks restricts the funding of EFL’s major capex projects.

“Establishing the Syndicate Banking Facility is strategic for EFL in the medium and long term so that it has a wider pool of lenders that can fund its development plan in the medium and long term and that EFL is not dependent on only a single lender. This approach provides diversity and prudent risk management for EFL from a credit, pricing and funding point of view.

“This facility has been stress tested using EFL’s balance sheet and complies with all the three banks’ financial covenants. The outcome of the ‘stress test’ has resulted in the three syndicate bankers approving a maximum credit limit of $335m for EFL”

He said since EFL was a highly capital intensive industry and its operation was critical to Fiji being an enabler to the growth of the national economy, in this context, it must always be supported with a robust and diversified lending portfolio to ensure funding accessibility and availability.

“The appetite of the syndicate banking facility can support EFL develop projects to the tune of around $F335m.”