TIDMZAM
RNS Number : 7856S
Zambeef Products PLC
18 July 2022
Zambeef Products plc
("Zambeef", the "Company" or the "Group")
INTERNATIONAL FINANCE CORPORATION FUNDING
Zambeef (AIM: ZAM), the fully integrated cold chain foods and
retail business with operations in Zambia, Nigeria and Ghana, is
pleased to announce that is has entered into a c. ZMW 570 million
(US$35 million) debt facility with the International Finance
Corporation ("IFC") to partially finance its USD100 investment
strategy as announced on 16 June 2022.
IFC, a member of the World Bank Group, is the largest global
development institution focused on advancing economic development
through supporting the private sector in developing countries.
Zambeef expects, subject to additional funding to allow full
implementation of the investment strategy, to double its Mpongwe
Farm row cropping capacity, and also to deliver significantly
improved production efficiency and capacity through the downstream
food value chains.
Summary details of the new facility are as follows:
-- New c. ZMW 570 million ( US$35 million ) secured term loan
-- Zambian Kwacha (ZMW) equivalent of US$35 million at the spot rate at the date of drawdown
-- First ZMW drawdown expected from 1 August 2022, and available
to drawdown until 31 December 2023
-- Eight-year term, ending 15 June 2030
-- Quarterly interest payments commencing on 15 September 2022,
with a fixed interest rate being currently within the range of
those other ZMW denominated facilities held by the Company
-- Principal will start amortizing two years from drawdown
Agriculture and agribusiness play an important role in Zambia's
economy, contributing around 20 percent of gross domestic product
(GDP) and about 12 percent of national export earnings.
This investment will contribute to climate change mitigation by
supporting efforts to improve Zambeef's energy and fuel efficiency
and reduce more than 14,000 metric tons* of greenhouse gas
emissions every year. IFC will also provide advisory services to
help Zambeef set up a comprehensive carbon assessment planning
system, which will accelerate longer-term climate-smart initiatives
to combat climate change.
The investment will enable Zambeef to introduce a new health and
biosecurity management system across its animal production chain.
This will facilitate easier trade and allow for the safe transfer
of live animals and products to prevent entry of diseases that
could be circulating in domestic or regional markets.
The investment aligns with IFC's strategic approach to
agribusiness, which focuses on enhancing food security, boosting
inclusive growth and shared prosperity, and making sustainability a
business driver.
Faith Mukutu, Chief Executive Officer of the Company,
commented:
"Throughout its history Zambeef has grown with the Zambian
people, providing jobs, livelihoods and world-class shopping for
our customers by adding value to local produce. This latest support
from IFC is part of our US$100 million investment strategy to
expand that even further."
*Directors belief based on management's estimates
For further information, please visit www.zambeefplc.com or
contact:
Zambeef Products plc Tel: +260 (0) 211 369 003
Faith Mukutu Chief Executive Office
Mulwanda Sichula, Acting Chief Financial Officer
finnCap (Nominated Adviser and Broker) Tel: +44 (0) 20 7220 0500
Ed Frisby/Tim Harper (Corporate Finance)
Tim Redfern/Barney Hayward (ECM)
Autus Securities Limited Tel: +260 (0) 761 002 002
Mataka Nkhoma
About Zambeef Products plc
Zambeef Products plc is the largest integrated cold chain food
products and agribusiness company in Zambia and one of the largest
in the region, involved in the primary production, processing,
distribution and retailing of beef, chicken, pork, milk, eggs,
dairy products, fish, flour and stockfeed, throughout Zambia and
the surrounding region, as well as Nigeria and Ghana.
It has 236 retail outlets throughout Zambia and West Africa.
The Company is one of the largest suppliers of beef in Zambia.
Five beef abattoirs and three feedlots are located throughout
Zambia, with a capacity to slaughter 230,000 cattle a year. It is
also one of the largest chicken and egg producers in Zambia, with a
capacity of 8.8m broilers and 22.4 million-day-old chicks a year.
It is one of the largest piggeries, pig abattoirs and pork
processing plants in Zambia, with a capacity to slaughter 75,000
pigs a year, while its dairy has a capacity of 120,000 litres per
day.
The Group is also one of the largest cereal row cropping
operations in Zambia, with approximately 7,787 hectares of row
crops under irrigation, which are planted twice a year, and a
further 8,694 hectares of rainfed/dry-land crops available for
planting each year.
More information is available at www.zambeefplc.com
The information contained within this announcement is deemed to
constitute inside information as stipulated under the retained EU
law version of the Market Abuse Regulation (EU) No. 596/2014 (the
"UK MAR") which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. The information is disclosed in accordance
with the Company's obligations under Article 17 of the UK MAR. Upon
the publication of this announcement, this inside information is
now considered to be in the public domain.
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