Johannesburg, South Africa — MININGREVIEW.COM — 16 March 2010 – Against the backdrop of a somewhat torrid 2009 for the world’s mining project finance sectors, Nedbank Capital has achieved an international ranking of fourth out of all the major mining project finance lead arrangers for the year.
Announcing this in a statement released here, Nedbank Capital quoted a recently issued report by Ernst & Young Mining Eye entitled “2009: the year of survival and revival “’ mergers, acquisitions and capital raising in the mining and metals sector.”
The report “’ which highlights the fact that the mining project finance sector was severely impacted by the global economic downturn “’ points out that total 2009 deal value dropped to US$5.4-billion (R40.5 billion), compared to the almost US$8-billion (R60 billion) closed globally in 2008.
Nedbank Capital joint-head of Mining Resources Mark Tyler says the achievement by Nedbank against this negative backdrop is the result of the robust risk management processes put in place by the bank prior to the onset of the economic crisis, as well as active management of their exposures. “This, combined with an absolute commitment to a collaborative, partnership-driven approach saw Nedbank Capital working closely with its clients and drawing on the extensive local and international expertise and support available across the group,” he adds.
The effectiveness of Nedbank Capital’s holistic approach is not only evidenced by its fourth place ranking among the world’s leading mining project financiers. It is also illustrated by the number of prominent deals closed by the team during the 2009 year, among them: the re-financing of a R1.92billion revolving credit facility for Kumba subsidiary Sishen Iron Ore Company; a US$165 million (R1.2 billion) project finance facility for a uranium mining and ore treatment facility at Paladin’s Kayelekera Uranium Mine in Malawi; and the raising of R4.5 billion for a BBBEE transaction that saw a consortium of investors and community groups acquiring a 24% empowerment stake in Richards Bay Minerals.
“Nedbank Capital’s ability to provide a range of essential services to mining industry participants “’ from acquisition and leveraged finance, export credit finance, and project finance, to corporate debt, advisory, and equity and hedging “’ has seen it develop an enviable reputation as a preferred partner to entities undertaking major infrastructure and mining projects in Africa and the rest of the world,” says Tyler.