Last checked at 26 Jan 2022 15:42
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"]
TRANSACTION ANNOUNCEMENT
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
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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.
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Effective Date | Date of execution of guarantee.
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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.
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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.
By Order of the Board
Chabby Chabala
COMPANY SECRETARY
Issued in Lusaka, Zambia on 25 January 2022
Lusaka Securities Exchange sponsoring broker - Stockbrokers Zambia Limited | |
| T | +260-211-232456
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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