Kibos Sugar and Allied Industries Limited

MIGA has issued additional coverage of $7 million to the Industrial Development Corporation of South Africa Ltd. (IDC) to reflect an increase in the amount of its non-shareholder loan to Kibos Sugar and Allied Industries Limited. In 2006, MIGA issued a $6.2 million guarantee to IDC covering its $6.5 million non-shareholder loan to the project enterprise. The guarantee coverage will continue to be against the risks of expropriation, transfer restriction, and war and civil disturbance for a period of up to eight years.

IDC’s increased loan amount will fund an expansion of the greenfield sugar plant’s production capacity. The crushing capacity will be expanded from 375,000 to 495,000 tons per year, resulting in a 25 percent increase in the amount of sugar produced. The sponsors will also expand the areas under cultivation from 2,000 to 3,000 hectares (ha) of irrigated sugar cane estate. The amount cultivated by small growers in the vicinity of the factory will also be increased from 2,000 to 3,000 ha.

For more information on this project, visit www.miga.org/kibos1.