Last checked at 26 Jan 2022 15:42
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ZCCM INVESTMENTS HOLDINGS PLC
[Incorporated in the Republic of Zambia]
Company registration number: 771
Share Code: ZCCM-IH
ISIN: ZM0000000037
["ZCCM-IH" or "the Company"]Â
TRANSACTION ANNOUNCEMENT
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The Board wishes to inform the shareholders and the market that ZCCM Investments Holdings Plc ("ZCCM-IH" or "the Company"), has agreed to provide a Corporate Guarnatee to Zambia National Commercial Bank Plc ("Zanaco") for the amount of USD10 million (the "Transaction").
In line with the requirements of Section 9 and 10 of the Lusaka Securities Exchange ("LuSE") Listings Requirements, the key features of the Transaction are as follows.
Particulars of the Transaction | The provision of USD 10 million Corporate Guarantee to Zanaco Plc by ZCCM-IH for provision of working capital to Konkola Copper Mines Plc ("KCM"). |
Guaranteed Amount | · USD 10 Million  |
Other significant terms of the Transaction     | · Provision of USD 10 million Corporate Guarantee to Zanaco Plc valid until 31st December 2022 comprising : 1 A USD 8 million Standby Letter of Credit ("SBLC") by Zanaco Plc in favour of Trafigura, the suppliers of copper concentrates to KCM and buyers of the finished copper, and; 2 A USD 2 million overdraft facility. · Promissory note issued in favour of ZCCM-IH by Ministry of Finance for the amount of the Corporate Guarantee.  |
Effective Date | Date of execution of guarantee. Â |
Rationale for the Transaction | The support of ZCCM-IH to the operations of KCM is quite critical at this juncture. KCM needs working capital urgently in order to procure concentrates from Trafigura to sustain its metallurgical and production operations. Â |
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Shareholders are advised to continue to exercise caution when dealing in the Company's securities until completion of the Transaction which is expected on 26 January 2022.
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By Order of the Board
Chabby Chabala
COMPANY SECRETARY
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Issued in Lusaka, Zambia on 25 January 2022
Lusaka Securities Exchange sponsoring broker -Â Stockbrokers Zambia Limited | |
 | T | +260-211-232456  E | advisory@sbz.com.zm  W | www.sbz.com.zm  Stockbrokers Zambia Limited (SBZ) is a member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia. |
First Issued on 25 January 2022