Communication - Presse

HCB denies story of 250 million euro debt

Hidroelectrica de Cahora Bassa (HCB), the company that operates the Cahora Bassa dam on the Zambezi River, in the western Mozambican province of Tete, claims that a video that went viral on social media alleging that it has “a non-transparent debt of 250 million Euros (270.9 million dollars at the current exchange rate)” goes against its good image and name.”

In a statement, the company says that the video contains disinformation, and “for this reason, the HCB Board of Directors guarantees to its shareholders, investors and the general public that the company has not benefited from any bank loans from national or international financial institutions.”

However, it adds that negotiations are currently underway with development finance institutions with a view to obtaining better financing conditions for part of the investment for the rehabilitation of the Electroproduction Park, under the “Capex Vital Project”.

“The decision to use third party funds to finance part of the investment in the rehabilitation project is based on the need to free up HCB’s liquidity to simultaneously finance the expansion and growth projects that will be developed at the same time as the rehabilitation projects”, reads the note.

On the other hand, it says, the decision on whether or not to take out this financing will be based on the company’s economic and financial viability “and on the benefit to the company, its shareholders and investors.”

Link: https://clubofmozambique.com/news/mozambique-hcb-denies-story-of-250-million-euro-debt-aim-253096/