Displaying items by tag: Finance
PPC launches US$10.8m share buyback
27 June 2023South Africa: PPC has commenced a buyback of US$10.8m-worth of its registered shares, the Cape Times newspaper has reported.
Chief executive officer Roland Van Wijnen said "We have been very conscious of our capital allocation to ensure our debt levels come to acceptable levels and we have finally achieved that." He added "We believe our share price is well below the true value and therefore we believe it is better for our shareholders to initiate a share purchase rather than a distribution through cash."
Saudi Arabia: Southern Province Cement has secured a loan worth US$373m from Saudi National Bank. The loan will cover its construction of a 5000t/day production line at its upcoming Jizan cement plant, as well as the construction of infrastructure for a second new line of the same capacity at the plant. The producer appointed China-based Sinoma International Engineering to build the plant in May 2023.
Reuters has reported that the loan has a duration of 10 years and a two-year grace period.
Shree Cement denies US$2.8bn tax fraud
26 June 2023India: Shree Cement has rejected findings by the government's Income Tax Department of tax fraud worth US$2.8bn. NDTV News has reported that the producer's alleged financial mismanagement resulted in losses of up to US$170m/yr for national and state governments. The mismanagement reportedly included the use of forged documents. Authorities conducted a second set of searches at company sites in Rajasthan during the week ending on 25 June 2023, following preliminary searches on 21 June 2023.
Shree Cement said "The company's management team is available and extending full cooperation to the officials. The information as required by the officials is being made available."
Shree Cement facilities raided by tax authorities
22 June 2023India: The government's income tax department has carried out raids at five locations belonging to Shree Cement. Reuters has reported that the authorities said they conducted 'survey action' on 21 June 2023.
India: Adani Group has reportedly entered discussions with five banks in a search to refinance US$3.8bn-worth of loans taken for its acquisition of Holcim India. The Economic Times newspaper has reported that the group aims to secure funding by mid-July 2023. Potential participants in the refinancing round reportedly include Malaysia and Taiwan-based banks, as well as existing lenders Barclays, Deutsche Bank and Standard Chartered.
Peru: Unacem and Grupo Calidra have received clearance from the National Institute for the Defense of Competition and Protection of Intellectual Property (Indecopi) to launch a joint venture in the lime sector. Carretera News has reported that the new company will establish a 600t/day lime plant, at an investment cost of US$40m. The partners expect to commission the plant in early-mid 2025. Unacem, which holds a 51% stake in the venture, has reported that it and Grupo Calidra will fund the growth from a combination of their own finances and bank loans.
Nigeria: BUA Cement plans to use loans worth US$500m towards the construction of two new 3Mt/yr cement plants in Sokoto State. When operational, the new plants will increase the producer's installed capacity by 55% to 17Mt/yr. Local press has reported that BUA Cement plans to run both cement plants using solar power, and to produce cement using alternative fuel (AF). Additionally, the producer will use a portion of the funding to replace part of its diesel-fuelled cement truck fleet with new natural gas-fuelled models.
Of a total US$500m in financing secured by BUA Cement on 5 June 2023, the International Finance Corporation (IFC) lent US$161m (32%) and African Development Bank, Africa Finance Corporation and the German Investment Corporation jointly lent US$245m (49%), with the remainder advanced by institutional investors.
JSW Cement takes US$50m sustainability-linked loan
12 June 2023India: JSW Cement has signed a US$50m sustainability-linked loan agreement with BNP Paribas Singapore. The Hindu BusinessLine newspaper has reported that the producer plans to use the funds for capital expenditure projects aimed to more than double its production capacity to 50Mt/yr from 17Mt/yr. Current plans include US$388m in investments in the construction of a 2.5Mt/yr integrated cement plant in Madhya Pradesh and a 2.5Mt/yr grinding plant in Uttar Pradesh.
The latest loan from BNP Paribas is the second of its kind taken by the group, following a US$48.5m sustainability-linked loan from Japan-based MUFG Bank in October 2022.
Ireland/US: Shareholders have approved Ireland-based CRH's board recommendation to transition to a US primary listing on the New York Stock Exchange. The company says that it will effect its transition on or around 25 September 2023. This will entail delisting shares from Ireland's Euronext Dublin, while retaining a standard listing on the UK's London Stock Exchange (LSE).
CRH derived 75% of earnings from North America in 2022. It expects the US market to be a key driver of future growth due to the country's growing populace and construction needs.
CEO Albert Manifold said "We are pleased to see such strong shareholder support for the listing transition, as it marks an important milestone in our development and will enable CRH to fully participate in the significant growth opportunities that lie ahead.”
Adani Group takes US$2.33bn in new loans since publication of Hindenburg Research report
08 June 2023India: Adani Group has taken a total US$2.33bn-worth of new loans over the two-and-a-half month period since the publication of a report into the group's activities by US-based shortseller Hindenburg Research on 24 January 2023. The report concluded with a finding of 'numerous issues of suspected fraud' by Adani Group. Adani Group explained at the time that all findings were 'stale, baseless and discredited.' The Times of India newspaper has reported that the group's net debt rose by 17% year-on-year to US$22.6bn on 8 June 2023. Adani Group's energy sector subsidiaries raised US$2.01bn-worth (86%) of the debt.
Adani Group completely paid off loans used in its US$6.4bn acquisition of Holcim India on 6 June 2023.