Gold Fields, the world’s fourth biggest gold producer, is planning to issue a long-term bond in South Africa to refinance debt within 12 months, an official said on Wednesday.
”I would like to refinance a sizeable chunk of our existing debt,” chief financial officer Nick Holland told journalists following a results presentation.
The term of the bond would be seven to 12 years and the exact value would be decided later, he added.
Gold Fields currently has R6,17-billion of long-term debt and R719-million in short-term debt.
The company took on most of the debt last year when it bought the South Deep mine in South Africa, the world’s largest gold deposit, for $2,5-billion in cash and shares.
Issuing a local bond would help free up a $750-million revolving credit facility in case the company wanted to pursue a further acquisition, Holland added.
”It does create firepower for us by then retiring that revolver but keeping the revolving facility in place. If we find a good deal to do, then we could move quickly and aggressively to seize that opportunity.” – Reuters