Johannesburg, South Africa — MININGREVIEW.COM — 09 April 2009 – Gold Fields Limited – the world’s third-biggest gold producer – has revealed that it has raised R568 million for the partial refinancing of a R1 billion debt which is scheduled to mature next month.
At the same time Absa Capital – the investment banking division of Absa Bank Limited – announced that it had raised the R568 million on behalf of Gold Fields Limited in the inaugural issuance under Gold Fields’ BESA-listed R10billion domestic medium term note programme (dated 6 April 2009).
Gold Fields investor relations manager Nikki Catrakilis-Wagner told Reuters that the company would secure bank debt to refinance the rest of the maturing debt, which she said the company would soon start paying off. “Our intention is to repay the entire debt eventually, and we may start doing so in the September quarter,” she said.
Catrakilis-Wagner pointed out that the group’s cash position was very healthy, and that it had a strong balance sheet. Commercial paper was the most cost effective and liquid means of raising the money.
Absa Capital, as sole lead arranger and book runner on this inaugural issuance, placed an aggregate of R568m in the local debt capital market through a tranched issuance of commercial paper notes with three month and six month maturities respectively.
Jacques Els, head of Debt Capital Markets at Absa Capital, said there was strong demand for the paper, as evidenced by the overall book being subscribed to the extent of 115%. This bore testimony to Gold Fields’ strong credit quality and investors’ continued demand at the short end of the curve.
“We are delighted to have raised these funds on behalf of a blue chip client like Gold Fields in these challenging market conditions,” said Els.