Absa Capital, the investment banking division of Absa Bank Ltd, acting as Sole Lead Arranger, has raised R128m in a high yield, unrated bond issuance for Simmer & Jack Mines Limited (Simmer & Jack). The bonds are the first high yield bonds to be listed on the Johannesburg Stock Exchange.
This is the second high yield bond executed by Absa Capital in the last six months following the private placement of the Savcio Holdings high yield corporate bond issuance and marks the resurgence of the high yield bond market in South Africa.
Prasanna Nana, Head of the South African Debt Capital Markets team at Absa Capital, said: “The debt capital market in South Africa is increasingly becoming an important source of liquidity for a wider range of issuers in South Africa. We are pleased to have partnered with Simmer & Jack on their debut in the debt capital market.”
The bond was executed under a Domestic Medium Term Note (DMTN) programme that was established by Simmer & Jack.
“The deal was concluded in just four weeks, including establishing the DMTN, demonstrating that corporates can raise funding in the capital markets over a short period of time,” said Nana.
“We expect similar types of issuances to come to market as corporates continue to diversify their funding sources away from traditional bank lines and as the high yield market further develops in South Africa,” added Nana
This transaction further enhances Absa Capital’s position as the leading house in terms of placing high yield bonds in the capital markets.Ends
About Absa Capital
Absa Capital, a division of Absa Bank Limited (Absa) and affiliated to Barclays Capital, is a leading South African investment bank with global reach, offering clients financing, risk management and advisory solutions in a wide range of currencies and structures across the globe.
Absa Capital was rated the “Best Primary Markets House” in the 2009 JSE Spire Awards – one of nine first place rankings the firm secured at the awards. About Simmer & Jack
Simmer & Jack is a mid-tier gold and uranium company with long-life assets in South Africa's Gauteng, North West and Mpumalanga provinces. The Company has a 37% stake in gold and uranium miner, First Uranium Corporation Limited and is in the process of finalizing the acquisition of the Tau Lekoa mine from AngloGold Ashanti. The completion of this transaction will transform Simmers from a junior miner to the fourth largest producer of gold in South Africa.Issued by:
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