2 October 2019
Absa Bank Limited (“Absa”) acted as Joint Global Coordinator, Bookrunner, Mandated Lead Arranger and Facility Agent on the refinance and upsize of Harmony Gold Mining Company Limited’s (“Harmony”) existing U$350m term loan and revolving credit facility with a new 3+1 year U$400m term loan and revolving credit facility (the “Facility”).
The syndication of the Facility was oversubscribed, confirming the confidence of the participating banks in the credit quality of Harmony, their mining assets and the strength of their balance sheet.
Absa’s support for the deal reaffirms its status as a leading funder of projects in the mining sector in South Africa and the rest of Africa. According to Tawanda Madondo (Senior Coverage Banker Natural Resources - CIB ) Absa’s understanding of the global gold industry and in depth knowledge of Harmony led to the successful syndication the Facility.
Harmony has expanded from being the third largest gold mining company in South Africa to the largest, in part due to organic growth and acquisitions - some of which Absa has supported.
“The success of the deal means local and international banks have strong credit appetite for successful South African companies like Harmony ” says Andrew Sprenger (SA DebtTransactor - CIB). “We were able to lead deal roadshows in Johannesburg and London to ensure the oversubscription of the Facility – and in the process, reconfirmed Absa’s credentials as a leading debt financing franchise in the market and a core relationship bank to Harmony”.
Harmony intends using the Facility to grow existing operations and grow its asset base in South Africa, Papua New Guinea and the rest of Africa. Herman Perry (CFO - Treasury) from Harmony commented that, “Absa played a key role in the successful conclusion of the Facility - both from a Lender, Bookrunner and Global Co-ordinator perspective. We are pleased to partner with Absa on our growth journey”.