The Fiji Sugar Corporation had to take loans to make two cane payments, states FSC’s 2024 annual report that was released last week.
The report states FSC secured a temporary overdraft facility of $25million from Home Finance Company Pte Ltd (trading as HFC Bank) to fund the third cane payment for 2023 season.
“The borrowing was secured by a government guarantee,” states the report.
“The overdraft facility in the HFC operating account was maintained at $30m and a temporary facility of $25m during the year. Overdraft facilities are secured by Government guarantee and floating charge over all the Corporation’s assets.”
FSC also secured a term loan facility of $20m from Fiji Development Bank on May 23, 2024 to finance the fourth cane payment for 2023 season with the government guarantee as security.
“The loan is for a five-year period with monthly repayments of $400,000 (including principal, interest, stamp duty and bank fees).”
“The term loans from Fiji Development Bank are secured against Government guarantee and bill of sale over assets acquired from these loans.”
