Dalmia Bharat Sugar subsidiary executes $87.5M loan for Tanzania project
- EATL executed a $87.5 million term loan agreement with CRDB Bank on October 20, 2026
- Loan funds a 3500 TCD sugar unit and 20 MW co-gen plant in Tanzania
- Dalmia Bharat sponsors an SBLC covering 51% of the principal amount
- Total estimated project cost stands at US$132 million
- Facility has a 10-year tenor at floating interest rates
*this image is generated using AI for illustrative purposes only.
Dalmia Bharat Sugar & Industries subsidiary Eagle Agrotech Tanzania Limited (EATL) has executed a $87.5 million term loan agreement with CRDB Bank to fund a sugar production project in Tanzania.
The facility agreement was signed on October 20, 2026, and received by the parent company on October 21, 2026. This follows the board's approval of the project on July 14, 2026, which involves setting up a sugar manufacturing unit and co-generation facility with an estimated total project cost of US$132 million.
Loan and project details
The financing will support EATL's plan to establish a 3500 TCD (tonnes of cane per day) sugar production unit along with a 20 MW co-generation facility. The loan is structured as a term loan for a period of 10 years at a floating rate, denominated in Tanzanian currency equivalent to $87.5 million.
The following table summarises the key parameters of the transaction:
| Parameter | Details |
|---|---|
| Loan amount | $87.5 million |
| Lender | CRDB Bank Public Limited Company |
| Borrowing entity | Eagle Agrotech Tanzania Limited (EATL) |
| Parent entity | Dalmia Bharat Sugar & Industries Ltd |
| Project location | Tanzania |
| Planned capacity | 3500 TCD sugar production unit |
| Co-generation facility | 20 MW |
| Tenor | 10 years |
| Interest rate | Floating |
| Total project cost | US$132 million |
Security structure
Dalmia Bharat Sugar & Industries will sponsor a Standby Letter of Credit (SBLC) as collateral security for the loan. The SBLC covers 51% of the principal amount. The quantum of the SBLC is dynamic; it will change each year depending on the expected principal outstanding or drawdown expected by the end of each year from the date of the agreement.
Regulatory disclosures
The transaction was disclosed pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. EATL is identified as a step-down wholly owned subsidiary of EAHL, which is part of the Dalmia Bharat group. The company stated that the agreement will not have any impact on the management or control of Dalmia Bharat Sugar & Industries.
While the facility agreement between CRDB and EATL is not a related party transaction, the provision of the SBLC by the parent company to CRDB as collateral is classified as a related party transaction. The company confirmed that this arrangement will be conducted at arm's length.
Historical Stock Returns for Dalmia Bharat Sugar & Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.78% | -9.53% | +14.03% | +14.38% | +22.02% | +2.41% |
How will the floating interest rate structure of the $87.5 million loan impact Dalmia Bharat's debt servicing costs if Tanzanian shilling volatility or global rates rise?
What are the projected timelines for the 3500 TCD sugar unit to reach commercial production, and how does this align with Dalmia Bharat's long-term capacity expansion goals?
How might the 20 MW co-generation facility influence EATL's operational cost efficiency and potential revenue streams from surplus power sales in Tanzania?
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