Delta secures $70million local loan to repay offshore debt

Delta secures $70million local loan to repay offshore debt

DELTA Corporation will this month pay off its offshore loan after two local financial institutions extended a $70 million facility to repay the debt, an executive said.images (1)

Group finance director, Matts Valela told The Source in telephone interview that Barclays Bank Zimbabwe and Standard Chartered had extended $40 million and $30 apiece to enable the business to service a $60 million loan.

The initial loan Valela said, was backed by majority shareholder SABMiller soon after the introduction of the multiple currency regime had a three year tenure.

“We borrowed offshore backed by the comfort from our shareholder. Now Zimbabwe is now well known where it is and our balance sheet can now be understood,” Valela said.

“It’s a replacement of a loan, we have been investing for capex and working capital so it is not for new money. We are just paying off one loan and getting another,” Valela said.

“We are paying off in November, it was an offshore debt. We are rolling it again and we still have the debt for three years, localized still at the same cost at about 7,3 percent.”

The group’s operating income for the six months to September dropped by nine percent to $57 million while earnings before interest, taxes, depreciation and amortisation was down four percent to $ 74,4 million.-The Source


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