ZCCM IH Plc (Zambia) – Atlas-Mara US$15 million Corporate Guarantee Transaction

By Published On: July 28th, 2022Categories: Corporate 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 Corporate Guarantees to Atlas Mara Bank for the amount of USD 15 million (the “Transaction”).

In line with the requirements of Section 9 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 15 million Corporate Guarantees Atlas Mara by ZCCM-IH for the provision of a Letter of Credit and Working Capital to Mopani Copper Mines Plc (“MCM”).
Guaranteed Amount  USD 15 Million
Other significant terms of the Transaction Provision of USD 15 million Corporate Guarantee to Atlas Mara comprising:

  • USD 5 Million Letter of Credit from Atlas Mara; and
  • USD10 Million Overdraft Facility from Atlas Mara for twelve months.
Effective Date 22 June 2022
Rationale for the Transaction The support of ZCCM-IH to the operations of MCM is quite critical at this juncture. MCM needs working capital urgently in order to address the following issues:

  • Purchase of third-party concentrates;
  • Financing of mobile equipment; and
  • Recurring working capital needs.

ZCCM Investments Holdings Plc (ZCCM.zm)

Share price: 37.98 Kwacha (0.00 | 0.00% – 11/08/22)

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