Harmony and Absa CIB have completed an innovative Sustainable Finance and ESG transaction
Absa Group Limited
Harmony Gold Mining and Absa CIB have finalized a new syndicated, multi-tranche, sustainability-linked, and green use of proceeds term debt package. The New Syndicated Facilities are valued at approximately R10.40 billion. It is one of the largest fully sustainable debt packages on the African continent.
Harmony Gold Mining Company Limited (Harmony) and Absa Corporate and Investment Banking (Absa CIB) have finalized a new syndicated, multi-tranche, multi-currency, sustainability-linked, and green use of proceeds term debt package (the "New Syndicated Facilities").
This is a ground-breaking and market-leading transaction. It is not only one of the largest fully sustainable debt packages on the African continent, but it is also the largest in the sector over the last year.
Harmony appointed Absa CIB as Joint Global Co-ordinator, Bookrunner, Sustainability Co-ordinator, Mandated Lead Arranger, Facility Agent, and Sustainability Agent on the New Syndicated Facilities in a transaction valued at approximately R10.40 billion.
"This is a game-changing transaction in terms of Sustainable Finance in the South African market, and it will set the standard for future transactions,"
says Tawanda Madondo, Principal: Resources and Energy at Absa CIB.
"The Harmony relationship is critical for us, Madondo adds. This transaction aligns with our core strategic goal of being a preferred partner by going beyond debt financing to provide a solution that is integrated with their ESG and Sustainability goals."
Absa CIB was able to offer a complete market leading ESG solution to Harmony by investing significantly in its Sustainable Finance and ESG value proposition.
"Absa CIB has been supporting our growth journey by providing an increasing and sizeable amount of balance sheet support to the business over time. Following another rigorous RFP process, Absa CIB was chosen as the Global Coordinator and Bookrunner on the New Syndicated Facilities. Absa CIB also provides us with a variety of other services and is a trusted partner of Harmony,"
says Herman Perry, CFO/Executive: Treasury, Harmony Gold Mining Company Limited.
The agreement also supports Harmony's strategic goal of cost reduction by providing the necessary funding to finance the construction of its own solar PV plant, allowing for cheaper electricity self-generation.
Furthermore, this transaction will significantly improve Harmony's overall corporate flexibility, allowing it to support its growth strategy while maintaining operations.
"Absa CIB is proud to be championing a green-focused financing solution for our clients and to improve the overall well-being of our planet,"
Madondo concludes. Harmony's debt solution demonstrates Absa CIB's commitment to pioneering a greener future for all.
Source: CAPE Business News