JOHANNESBURG - South Africa’s largest gold miner Harmony Gold has refinanced and increased its existing $350 million loan and revolving credit facility, raising it to $400 million, lead arranger Absa Bank Limited said on Wednesday.
Absa said the syndication of term loan and revolving credit facility was oversubscribed, adding that it reflected the confidence of participating banks in Harmony’s credit quality, its mining assets and strength of its balance sheet.
The facility will help Harmony expand its existing operations in South Africa, Papua New Guinea and the rest of Africa, the Absa statement said.
Absa said in a statement that 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.
REUTERS / BUSINESS REPORT ONLINE