AngloGold raises $1.58bn to close hedge book

[] — AngloGold Ashanti said on Thursday it has exercised an over-allotment option on its share and bond issue to help raise an overall $1.58bn to close its hedge book and benefit from record gold prices.

The company, the world’s third-largest gold miner, said on Wednesday it would offer bonds and shares to close its hedge book, worth between $2.4bn to $2.5bn, to increase its exposure to big rises in the spot price of bullion and to improve its cash flow to fund its project pipeline.

Following the exercise of the over-allotment, AngloGold will offer a total of 18.1 million shares at R308.37, raising around $789.

It will raise a similar amount through the sale of subordinated bonds due 2013 and convertible into 18.1 million American Depositary Shares (ADS) at $43.50.

Shares in the company closed at R316 on Wednesday after falling nearly 5% during the session.