Gold Fields raises $1 billion in two new bonds
It will use the proceeds to repay debt.
South Africa’s gold miner, Gold Fields, said on Thursday that it has raised a total of US$1 billion, which will be used to pay the company’s debt.
Gold Fields said it successfully concluded the raising of two new bonds – a US$500 million five-year bond with a coupon of 5.125 percent and a US$500 million ten-year bond with a coupon of 6.125 percent. In total, the company has raised US$1 billion at an average coupon of 5.625 percent.
The proceeds of the raising will be used to repay amounts outstanding under the US$1.29 billion credit facilities agreement and refinance or repurchase certain other existing indebtedness. The company said the proceeds will also be used “for general corporate purposes”.
“As published in our 2018 Integrated Annual Report, one of Gold Fields financial targets in its 2019 Balanced Scorecard is to improve the liquidity and profile of the Group’s debt. This entails both reducing net debt and extending the maturity of the debt profile. The bond issue extends and spreads out the maturity of the debt profile,” the company said in a statement.