ZCCM IH Plc (Zambia) – Indo Zambia Bank US$15 million Corporate Guarantee Transaction

By Published On: July 29th, 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 Indo Zambia Bank (“INDO”) 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 INDO 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 INDO comprising:

  • USD 5 Million Letter of Credit and
  • USD10 Million Overdraft Facility
Effective Date 12 July 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;
  • 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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