Exxaro raises R1bn in bond issues

[miningmx.com] – EXXARO Resources has raised R1bn in two bond issuances, the proceeds of which would be used for “general corporate purposes”, the company said in an announcement to the Johannesburg Stock Exchange.

Exxaro Resources CFO, Wim de Klerk, said on March 6 that the company was seeking a means of diversifying its source of finance. “We are looking at options,” he said at the group’s full-year results announcement in which it said it had stopped financing its iron ore projec, Mayoko, in the Republic of Congo.

Exxaro said today it raised a R480, three-year note at a coupon rate of 7.5%, and a R520m, five-year note at a coupon rate of 7.75% coupon rate under its R5bn domestic medium term note programme dated April 25.

The R480m bond carries a maturity date of May 8, 2017 while the R520m bond matures on May 19, 2019, the company said.

“This transaction marks Exxaro’s successful entrance into the ZAR debt capital markets, and is in line with its strategy to diversify its funding sources,” it said in the announcement.

“We are very happy with the outcome of our debut bond which will serve towards our strategy of portfolio optimisation and in this regard, diversification of our funding sources,’ said Exxaro CEO, Sipho Nkosi, in a press release.