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“The building materials manufacturer took out a Shs 11 billion loan from the Fund back in 2010, to facilitate construction of one of its factories in Kamonkoli in Budaka district.
The loan, which at the time was unsecured, kept accumulating until last year, when an agreement was reached between the two parties to have it capped at Shs 20.6billion.
NSSF also agreed to have the repayment period extended up to 2030.
“The debt has been restructured such that we shall begin to repay in January 2025 and we have a space of 5 years within which to pay,” said Uganda Clays Chairman, Eng. Martin Kasekende.
“I am happy to report that the loan rescheduling agreement has now been concluded. The repayment will be by way of 10 equal installments every six months beginning Jan 2nd 2025. I can also confirm that the loan is fully secured. The company has provided some land titles for security.”
Kasekende was addressing Uganda Clays shareholders yesterday, June 30th at the company’s Annual General Meeting held virtually at the Kampala Sheraton.
In the meeting, Jones Muhumuza, the Uganda Clays Head of Finance informed the shareholders about the company’s ambitious expansion plans as the Ugandan and international macroeconomic outlook continues to brighten.
Among others, Muhumuza announced that works are underway to set up a massive tile plant at Kajjansi, which will significantly boost output, efficiency, and expand the product varieties.
“We are acquiring a new tile plant from Italy. We expect this plant to be up and running next year and the expected benefits include improved and maximized efficiency, increased product output and product quality,” he said.
"The new tile line will be fully automated. We have already entered agreements with the design, engineering and spares providers. The individual parts for this line have already arrived and installation has started.”
Once fully completed, Muhumuza said the turnaround time will be reduced from days to hours.
“This time you will be able to come in at Midday and by 2 o'clock your truck will be driving out. It is an ambitious plan, but we are ready for it.”
Meanwhile, the board chairman Chairman announced a dividend payout to shareholders, of Shs 0.5 per share for the year ending 31st December 2022. Total dividend payable will be Shs 450 million.
This is a drop from Shs 1.5 per share in 2021.
The board chair blamed the decline in the company profits on a number of factors, including increased costs especially on imports due to the weakening of the Uganda Shilling.