By: Creamer Media

In a media release, Nedbank explains that it is one of the largest facilities of its kind that the bank has underwritten to date in the mining sector. Nedbank CIB provided a fully underwritten solution, giving AngloGold Ashanti funding certainty ahead of a planned debt syndication process.

Geita gold mine is Tanzania’s largest gold mining operation and a significant contributor to the local economy.

AngloGold Ashanti has an ongoing development programme at the mine aimed at extending its operating life and supporting long-term production. This credit facility supports the company’s funding requirements for the asset.

Following the transaction, Nedbank CIB says it launched a primary market syndication process for the local-currency portion of the facility, enabling participation by Tanzanian banks and supporting local content requirements at Geita.

The loan syndication formed part of a broader finance solution that combined structuring, underwriting and distribution under a single mandate.

“Acting as the sole underwriter on this transaction meant that AngloGold Ashanti could secure funding certainty from a single source, while the subsequent syndication of the local currency portion enabled Tanzanian bank participation.

“For Nedbank CIB, the significance of this financing lies in bringing structuring, underwriting and syndication together in a single solution that met AngloGold Ashanti’s funding needs,” says Nedbank CIB mining and critical minerals finance principal Matthew Stretch.

Nedbank CIB notes that it has a long-standing finance relationship with AngloGold Ashanti and has supported several of its operations across Africa.

“This facility is an important part of how AngloGold Ashanti is funding Geita’s ongoing development programme and gives the company flexibility to support the mine’s long-term plans. The structure was designed around the funding requirements of the asset and provides a strong platform for Geita’s next stage of growth,” says Nedbank CIB mining and critical minerals finance principal Tshepo Pitse.

Nedbank says this financing highlights Nedbank CIB’s ability to structure and deliver large, complex mining finance solutions that combine sole underwriting with local market participation in Africa.