20 November 2008 - Bunge Limited Finance Corp., a unit of Bunge Ltd. announced yesterday that it has entered into an unsecured USD 850 million revolving-credit agreement. In a filing with the Securities and Exchange Commission, Bunge says the credit agreement will mature on 17 November 2009.
“Borrowings under the credit agreement may be used to fund intercompany advances made to Bunge and certain Bunge subsidiaries, repay outstanding indebtedness from time to time and pay expenses incurred in connection with the credit agreement”.
The news comes a day after Bunge’s CFO, Jacqualyn Fouse, provided an overview of the company’s liquidity situation at an investor conference in New York.
She said that Bunge’s current liquidity situation as of 30 September 2008 reflects the drop in commodity prices, as well as higher earnings and actions taken to increase the efficiency of working capital management.
She also added that the company is in a very strong liquidity situation: “Despite the turmoil, we are today sitting in a very comfortable position regarding liquidity”.
As of 30 September 2008, Bunge has committed revolving credit facilities of USD 3.7 billion, all of which are unused and available.
Meanwhile, Bunge’s CEO, Alberto Weisser, also present at the conference, wanted to reassure investors that his company is dealing with the economic slowdown.
“I am comfortable with Bunge’s position and we will continue to create shareholder value. We have been operating in volatile markets for almost 200 years, we have a global and diverse business and we are very well capitalised. Our balance is sheet is stronger today than at any time since our IPO”, said the CEO.