Northam places R500 million of domestic medium term notes
- 13 Dec 2019
Northam is pleased to announce that it has completed a private placement of senior, unsecured, floating rate domestic medium term notes (“Notes”) to the value of R500 million (“New Notes”), under Northam’s R5 billion Domestic Medium Term Note Programme (“Programme”). The New Notes have been issued to the Industrial Development Corporation of South Africa Limited (“IDC”) today and listed on the Interest Rate Market of the JSE Limited. The New Notes will mature five years from the date of issue and will attract a floating rate coupon of 3.30% per annum above a 3 month ZAR-JIBAR, with interest payable quarterly.
Proceeds from the New Notes will be applied by Northam towards the recommissioning and development of Northam’s Eland mine, consequently creating new employment opportunities in the region.
Following the placement of the New Notes, the total nominal value of Notes in issue under the Programme will amount to R4.175 billion.
Paul Dunne, Northam’s chief executive, said: “Northam is delighted to have the IDC as a long-term funding partner in the development of its Eland mine and values the IDC’s commitment to job creation in the PGM sector. The IDC funding will contribute towards Eland mine capital expenditure and the 5 year commitment provides Northam with significant long-term funding certainty.”
13 December 2019
Corporate Advisor, Sponsor and Debt Sponsor to Northam