- Published on 05 February 2016
Northam is pleased to announce that it has entered into a subscription agreement (“agreement”) with the Industrial Development Corporation of South Africa Limited (“IDC”) in terms of which the IDC has agreed to subscribe for new domestic medium term notes (“notes”) to be issued by Northam, in an amount of R250 million (“proceeds”).
The proceeds will further strengthen Northam’s balance sheet and will be applied to the development of the company’s Booysendal expansion projects.
Paul Dunne, Northam’s chief executive officer, said:
“Northam is pleased to have the IDC as a funding partner. The confidence shown by the IDC in Northam is appreciated in light of the current adverse market conditions. This is a significant and important source of funding for Northam”.
Completion of the Booysendal projects will result in a significant expansion of Northam’s operating capacity as well as the creation of new employment opportunities.
Pursuant to the agreement, the notes may be issued at Northam’s election until 30 September 2016 and will have a 3 year term and bear a floating rate of 3.9% above the 3 month JIBAR.
Corporate Advisor, Sponsor and Debt Sponsor to Northam
Notes Arranger and Dealer
Legal Advisor to Northam on the Notes
Bowman Gifillan Inc.