HomeBase MetalsR5.4 million funding package for Kumba

R5.4 million funding package for Kumba

Iron ore moves up
the conveyor at Kumba’s
Sishen mine
Johannesburg, South Africa – MININGREVIEW.COM — 06 November 2008
Nedbank Capital has successfully concluded the advising and arranging of a funding package of R5.4 billion for Kumba Iron Ore Limited – the world’s fourth largest supplier of sea-borne iron ore, which exports and exports 73% of its 32Mtpa production to 30 global customers, mainly in Europe and Asia.

A Nedbank Capital news release issued here today said the deal would enable Kumba – a leading South African resources company majority owned by Anglo American – to expand its iron ore operations at its Sishen, Sishen South and Thabazimbi mines.

It added that after a competitive bidding process, Nedbank Capital had been selected as debt advisor and sole arranger for the funding package in the deal. Seven banks had participated in the final financing package, with Nedbank securing the majority funder position.

Nedbank Capital managing director Brian Kennedy commented: “Arranging the debt for the transaction is considered a remarkable achievement, given the current turbulent market conditions, the size of the deal, and the five-year term. This is a highly prestigious mandate which will help us cement our relationship within Kumba and the Anglo Group, he added.”