TIDMZCC

RNS Number : 7498Z

ZCCM Invs.Hldgs PLC

26 January 2022

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              The provision of USD 10 million Corporate Guarantee 
  Transaction                     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 31(st) 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. 
                                ------------------------------------------------------------------------ 
 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. 
                                ------------------------------------------------------------------------ 
 

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 
 
    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

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END

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(END) Dow Jones Newswires

January 26, 2022 10:42 ET (15:42 GMT)

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