Hester Biosciences Limited has informed the Exchange about General Updates - Announcement under Regulation 30 of Listing Regulations - Disclosure on amendments in loan agreement of Hester Africa
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Hester Biosciences Africa Limited, a wholly-owned subsidiary based in Tanzania, has executed amendments to its 2018 loan agreement with Gates Foundation. The outstanding loan has been reduced from USD 12 million to USD 5 million, accrued interest amounts have been waived, and no interest will be charged going forward. The repayment schedule has also been revised with tenor extension. Hester India continues to provide corporate guarantee for the facility. The company states the amendment will improve the subsidiary's liquidity and debt servicing position.
The debt reduction and interest waiver significantly ease the financial burden on the subsidiary, though Hester India remains exposed to guarantee obligations. The restructuring signals a lender-friendly renegotiation rather than distress.