Eagle Agrotech Tanzania signs Facility Agreement with CRDB Bank for $87.5 Million term loan
Eagle Agrotech Tanzania, a step-down subsidiary, has executed a Facility Agreement with CRDB Bank for a term loan of $87.5 Million (10 years, floating rate).
By ScoutQuest · · 2 min read
- Term loan amount
- $87.5 Million
- Loan terms
- 10 years, floating rate
- SBLC collateral coverage
- 51% of the principal
The company has disclosed that its step-down subsidiary, Eagle Agrotech Tanzania Limited (EATL), executed a Facility Agreement on October 20, 2026 with CRDB Bank Public Limited Company.
The money involved
- EATL can avail a Term Loan of $87.5 Million (equivalent in Tanzanian currency) from CRDB.
- The loan is for 10 year's period at a floating rate.
- This funding sits inside the larger Tanzania project — a sugarcane plantation and a sugar manufacturing unit of 3500 TCD with a co-generation facility of 20 MW, earlier approved at an estimated project cost of US$132 Million.
What the parent has to provide
- Dalmia Bharat Sugar and Industries Limited (DBSIL) is not a party to the Facility Agreement.
- DBSIL shall sponsor a Standby Letter of Credit (SBLC) as a collateral security, covering 51% of the principal amount.
- The quantum of the SBLC will change each year depending on the expected principal outstanding or drawdown expected by the end of each year from the date of the agreement.
Other points disclosed
- The agreement will not have any impact on the management or control of DBSIL.
- EATL is a step-down subsidiary of DBSIL.
- The Facility Agreement between CRDB and EATL is not a related party transaction; the provision of the SBLC by DBSIL to CRDB as collateral security will be a related party transaction and will be at arm's length.
- DBSIL holds no shareholding in CRDB.
What a retail investor can take away
- A large slice of the overseas project's funding is now tied up: $87.5 Million of debt against an estimated project cost of US$132 Million.
- The parent is standing behind the borrowing through an SBLC covering 51% of the principal, and that support obligation can move up or down each year with the loan outstanding.
- Per the update, the arrangement does not change who manages or controls the listed company.
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More numbers
- Estimated project cost (Tanzania sugar project)US$132 Million
- Term loan availed by EATL from CRDB$87.5 Million
- SBLC cover as share of principal amount51%
- Term loan period10 year's period
- Sugar manufacturing unit capacity3500 TCD
- Co-generation facility capacity20 MW
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