Colombian Mayaguez acquires sugarcane mill in Nicaragua

Nov 10, 2014 - Colombian sugar and ethanol producer Mayaguez (CLB:MAYAGUEZ) last week acquired 60% in Nicaraguan sugarcane mill Ingenio Casur in line with its expansion plan in Colombia and other countries of the region.

The acquisition was financed with loans in Colombia, the company said Thursday. The mill produces nearly 70,000 tonnes of sugar per crop for the local and foreign markets, as well as molasses and electricity.

At the end of October, Mayaguez obtained a loan of COP 56.61 billion (USD 26.9m/EUR 21.6m) for seven years, with an interest rate based on Colombia's DTF plus 2.5%.

The company plans to invest up to USD 300 million in its expansion, which will be financed via debt. In Colombia, it is acquiring the Ingenio San Carlos mill in Valle del Cauca department.

Mayaguez has a capacity to produce 250,000 litres (66,040 gallons) of ethanol per day.

(COP 100 = USD 0.048/EUR 0.038)

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