Displaying items by tag: Debts

Tanzania: Tanga Cement has advised investors that it expects a ‘significant improvement’ in its results to a profit before tax in 2021, compared to a loss in 2020. The Daily News newspaper has reported that strong sales during the year contributed to the forecast result, along with a drop in finance costs due to a restructuring of debt facilities.

Tanga Cement said “The improved performance is a result of Tanga Cement’s initiative to optimise the sales, logistics and distribution, as well as its continued cost optimisation initiative.” It added “The company has been able to achieve this despite the challenging global economic and operating environment conditions.”

India: Jaiprakash Associates has defaulted on its scheduled repayments of loans worth US$381m. Dion News Service has reported that the debt consists of US$203m-worth of overdue payments and a further US$178m in principal. The group’s total indebtedness is reportedly US$3.63bn. Its lenders include
HDFC Bank, Bank of India, Union Bank of India and over 30 other institutions.

India: The Securities and Exchange Board of India (SEBI) has fined Jaypee Infratech US$9140 for its failure to disclose its issue of a series of non-convertible debt securities. The company additionally failed to inform the BSE exchange of defaults in payment with respect to some of the series.

Oman: Raysut Cement has announced plans to issue a secured rated debt instrument to raise up to US$600m. Reuters News has reported the instrument will raise funds for the company’s growth initiatives and existing bilateral debt repayments. Raysut Cement plans to carry it out in two tranches.

India: Finance company ICRA reported all-India cement sales in the first half of the 2022 financial year of 124Mt, up by 22% year-on-year. Mint News has reported that the total value of cement sales rose by 5% in the period compared to the first half of the 2021 financial year. Producers’ raw materials costs rose by 16%, while power, coal and petcoke costs rose by 26% and freight costs rose by 7%. Granulated blast furnace slag (GBFS) and gypsum prices also rose.

ICRA corporate ratings assistant vice president and sector head Anupama Reddy said "Despite some easing in the cost-side pressures, the input costs are likely to remain elevated in the near term, and are expected to exert pressure on operating margins, which are likely to decline by 200 to 230 basis points (BPS) in the 2022 financial year as a whole. While the capacity additions are expected to increase year-on-year in the 2022 financial year, the reliance on debt is likely to be lower owing to the healthy cash generation and strong liquidity of the cement companies. The debt coverage metrics are expected to remain strong in the 2022 financial year."

India: Penna Cement has received clearance for a US$207m initial public offering (IPO). The company will offer a US$33.3m stake for sale along with the fresh issue of US$173m. The Times of India newspaper has reported that the company plans to use US$73.3m of the fresh capital to settle its debts and to invest US$14m in the construction of second line at its Krishnapatnam grinding plant Andhra Pradesh. It will invest a further US$10.7m in an upgrade to raw material and clinker grinding mills at its Talaricheruvu cement plant, also in Andhra Pradesh.

Mexico: Cemex has announced the release of the collateral on its debt under its main bank agreement and senior secured notes. The release follows Cemex’s reporting of two consecutive quarters with a consolidated leverage ratio of 3.75x or less.

CFO Maher A-Haffar said “We are very pleased with this momentous milestone, which is a culmination of the substantial strengthening of our capital structure and paves the way towards an investment grade rating. This will simplify our debt structure and reduce the cost of managing our debt stack.”

Azerbaijan: Holcim Azerbaijan recorded sales of US$59.2m in 2020, down by 16% year-on-year. Turan Information Agency News has reported that the producer’s net profit was US$24.5m, down by 23%. During the year, the company reduced its debt by 14% to US$67m from US$78m.

Zimbabwe: PPC Zimbabwe has received US$11.2m from the Reserve Bank of Zimbabwe as part of a legacy debts repayment scheme. The debt accrued due toregulations blocking the repatriation of revenue outside the country due to foreign exchange shortages, according to the New Zimbabwe newspaper. The debts were assumed by the central bank between 2016 and early 2019. At the time PPC Zimbabwe was left with a legacy debt of US$21m to its parent company PPC in South Africa. PPC expects the remainder of the debt to be repaid by the end of 2022.

India: Nuvoco Vistas has received approval from the Securities and Exchange Board of India to launch an initial public offering (IPO) of shares worth US$670m. The Hindu newspaper has reported that the offering will consist of a US$201m issuance of shares and a US$469m offer for sale. Around US$180m of the funds will be used to reduce the group’s debts and the remainder will be used for general corporate purposes.