JOHANNESBURG (miningweekly.com) – Diversified resources group Exxaro Resources last week marked its entry into the South African bond market after raising R1-billion.
The successful debut, which was “overwhelmingly” oversubscribed with an order book of R5.15-billion, also established a new form of financing for the group.
“We are very happy with the outcome of our debut bond, which will serve towards our strategy of portfolio optimisation and, in this regard, diversification of our funding sources,” Exxaro CEO Sipho Nkosi said.
The company explained in a statement that the bonds were issued under its recently established R5-billion domestic medium-term note programme listed on the interest rate market of the JSE.
The two floating rate bonds on offer – a three-year bond and a five-year bond – received strong investor support, allowing Exxaro to issue its full targeted R1-billion at pricing levels tighter than the initial price guidance.