21 June 2013
Queensland Sugar Limited (QSL) is pleased to announce it has successfully refinanced its current two-year $500 million cash advance agreement with three major banks for an extended three-year term. This facility together with the QSL commercial paper program provides ongoing financial security for QSL’s members; millers and growers.
The ongoing arrangement allows QSL to continue to pay cash advances throughout the year; in and out of the harvesting season. Payments are made to millers on receipt of raw sugar at the sugar terminals, who then pass it on to growers, in advance of QSL receiving payments from customers.
QSL has an enviable credit rating (Standard & Poor’s: A long term, A1 short term) and has the ability to obtain financing at a cost effective rate currently at around three percent.
The Advances Program is critical to the industry and underpins QSL’s key offering of financing in addition to the pricing, marketing and logistics services QSL also provides.
QSL had entered into a Syndicated Cash Advance Facility Agreement with ANZ as the Mandated Lead Arranger and Bookrunner who lead the refinancing along with National Australia Bank (NAB) and Rabobank.