RCL Foods: Foodcorp unit to buy back bonds

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A unit of RCL Foods, the largest local producer of poultry, is buying back its euro-denominated bonds in a deal that will be financed by local debt. Foodcorp, which owns brands such as Sunbake breads and Nola mayonnaise, would redeem the outstanding e351 million (R5 billion) on its 8.75 percent bonds due in March 2018, RCL said yesterday. Foodcorp would pay holders almost 1.1 times the face value of the debt and unpaid interest, it said. “The redemption will be funded through a locally sourced… rand debt package,” RCL said. Foodcorp is redeeming its foreign debt as the rand weakens against developed nations’ currencies. The rand has declined 4.8 percent against the euro this year. RCL shares gained 1.38 percent to close at R14.70 yesterday. – Bloomberg

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