MUR 1.2bn bond issuance for Mauritius Sugar Syndicate
PLEION Corporate Finance Ltd acted as Transaction Adviser and Issuing and Paying Agent for a second money market instrument issuance by the Mauritius Sugar Syndicate (MSS). Following the initial MUR 1.5bln 1 year issue in September, MSS followed up with a MUR 1.2bln 6 month issue with a significant amount of repeat participation from investors who had subscribed to the first issue due to their appreciation for the quality of the transaction and indeed the quality of the Issuer.
MSS is the custodian of Mauritius cane sugars and its primary objective is to maximise the revenue for sugar producers (large and small) through the adoption of commercial strategies that can secure attractive yields on a sustainable basis.
As part of its operations, MSS borrows funds from its banking partners to finance its purchases of sugar and, therefore, its cost of funds has a direct impact on the amount of funds available for distribution.
PLEION Corporate Finance advised the MSS on its funding strategy and has successfully implemented its proposal through the issuance of money market instruments under the Bank of Mauritius money market instrument guidelines. PLEION Corporate Finance worked with the Issuer and the rating agency (Care Ratings Africa Private Ltd) to secure an A1+ rating for this inaugural 12 month money market instrument issuance and the same rating (highest possible) was also applied to the 6 month issuance.
The MSS leveraged the transaction expertise of the PLEION Corporate Finance team to structure this debt issuance and deliver a very well subscribed transaction that reduced the Issuers’ borrowing costs and diversified their funding relationships.
This transaction reiterates the attractiveness of Mauritian money markets as a source of funding for investors.