Nampak, the diversified packaging manufacturer, said on Tuesday that its funders had agreed to extend the date by which it was required to reduce net interest-bearing debt by R1bn, either through strategic asset disposals or a combination of asset disposals and an equity capital raise, to April 1 2023.
“This extension will effectively align the debt reduction date with the maturity date of the revolving credit facility,” Nampak said.
The company’s African operations were under pressure for a few years in the lead up to the Coronavirus pandemic, and Nampak spent billions of rands to keep them ticking over.
Its expansion into the continent saw it rack up a debt pile that stood at R5bn at the end of March. However this has been offset by strong profit returns, with Nampak earning R222m in the six months to March for its investors.
CEO Erik Smuts has said consumer demand is under pressure in certain African markets given high inflation.