Sibanye Gold’s refinance of its bridging loan late last year demonstrates the opportunities and value that can be unlocked for African organisations, according to Nedbank Capital head of Resources Finance, Peter van Kerckhoven.
On Monday, Kerckhoven said that this is particularly the case in the resources sector through synergistic partnerships between local and global financial institutions.
The previous debt package held by Sibanye was created to support its demerger from Gold Fields in February 2013, noted Kerckhoven. “And now, just one year later, the business has been able to improve the terms of its debt financing – benefiting from the synergies that have been created between Nedbank and Bank of China Johannesburg as global alliance partners.”
Nedbank Capital, together with the Bank of China Johannesburg, acted as two of the three lead arrangers for the Sibanye transaction. The two parties hold the largest commitments under the new facilities.
Global finance access and local industry insight was a factor in realising the full value of the Sibanye refinance transaction, said Bank of China Johannesburg CEO, Zhikun Qiu. “We are optimistic about the considerable potential that these types of relationships offer in terms of driving both organisational and economic development across the continent in years to come.”
The refinance transaction stands to deliver significant value to Sibanye and its shareholders as it effectively restructured the company’s previous R6 billion debt package into R4,5 billion term and revolving credit facilities with extended repayment terms, lower interest rates and fewer restrictions.
The relationship between Nedbank, Bank of China Johannesburg and Sibanye is well established and has been integral to the completion of the transaction to the satisfaction of all parties, stated Qiu and Kerckhoven.
“Our relationship with Sibanye meant that we had clear insights regarding their vision and were able to structure their debt in a way that will give effect to their strategic objectives of paying an industry-leading dividend.”