PPC LIMITED - Update on Group Liquidity: PPC Barnet DRC Debt Rescheduling

Update on Group Liquidity: PPC Barnet DRC Debt Rescheduling

PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE and ZSE Code: PPC
ISIN: ZAE000170049
("PPC" or the "Company")

UPDATE ON GROUP LIQUIDITY: PPC BARNET DRC DEBT RESCHEDULING

PPC is pleased to announce further progress made with regards to the group’s
FOH – FOUR Strategic Priorities. In particular, PPC has been able to improve
the group’s liquidity position by finalising a capital repayment moratorium
with funders of PPC’s DRC operation, as conveyed to investors at the company’s
interim results in November 2017. This means that the total capital
requirements for PPC Barnet DRC will be limited to interest payments from
January 2018 up to January 2020.

Background

PPC Ltd owns 69% of PPC Barnet DRC, our local partner, Barnet Group, 21% and
10% is owned by International Finance Corporation (IFC).

PPC Barnet DRC has completed a 1.0 million tonnes per annum (mtpa) integrated
cement plant for around US$300 million. The plant is near Kimpese in the
Kongo Central province in western DRC, 230km south-west of the capital
Kinshasa.

The new cement plant is 60% project debt funded by the IFC and Eastern and
Southern African Trade and Development Bank (TDB). PPC Ltd has first
sponsorship obligation under a Project Funds and Share Retention Agreement
(PFSRA).

Summary of the project debt funding

The existing terms of the project debt are as follows:

   •   US dollar denominated, capital and interest payable biannually starting
       July 2017 and ending July 2024
   •   Loan secured by PPC Barnet DRC property, plant and equipment
   •   Interest rate is six month US dollar LIBOR plus 725 basis points

Agreement, subject to fulfilment of certain conditions precedent, has been
reached with IFC and TDB regarding rescheduling of the project debt. The
following changes to funding terms are applicable with effect from fulfilment
of conditions precedent:

   •   A 2 year capital repayment moratorium will be implemented, commencing
       with the repayment scheduled for January 2018; the next capital
       repayment will now take place in January 2020

   •   Extension of the repayment period by an additional 2 years
                                                                    
   •   An additional interest rate spread of 2.5%, making the new rate 6 month
       USD LIBOR plus 975 basis points

PPC Barnet DRC will continue to make interest payments during the 2 year
capital repayment moratorium.

Tryphosa Ramano, CFO, PPC explains that “this latest development is a major
achievement in addressing our capital structure. The rescheduling of debt
firstly reduces the capital requirements by PPC Barnet DRC from PPC Ltd.
Secondly it will improve cash flows for the DRC business which in turn will
allow the business additional liquidity during this ramp up phase.”

Sandton
19 January 2018

Investor contacts:
PPC:
Anashrin Pillay
Tel: +27 (0) 11 386 9000
Anashrin.Pillay@ppc.co.za

Siobhan McCarthy
Group Manager Corporate Affairs
Siobhan.mccarthy@ppc.co.za
Tel: +27 (0) 11 386 9000

Sponsor to PPC
Merrill Lynch South Africa (Pty) Ltd




                                                                     

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