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Harmony Gold Issues $500M Convertible Bond, Guaranteed by Group Entities

1 report, 1 independent Updated Sep 22
AI-generated briefing. Brind wrote this from the reports listed below. It can be wrong. Each section says how much you can rely on it, and the sources are linked so you can check.

What happened

Some supportReported by 1 outlet

Harmony priced an offering of $500 million in senior unsecured convertible bonds, which are due in 2031 and will pay a 1.500% annual coupon. The proceeds are designated for general corporate purposes. The bonds were issued at 100% of their principal amount, and the initial conversion price was set at R418.60 per share. Payments on the bonds are guaranteed by Harmony Gold (Australia) and several other associated entities.

From businessday.co.za

Why it matters

Some supportBrind's analysis of the reports

The issuance allows Harmony to enhance its funding efficiency and diversify its capital sources. The bonds are convertible into approximately 19.4 million Harmony ordinary shares, representing about 3% of its issued share capital. The offering was coordinated by Absa Bank, Nedbank, Citigroup, and Invest.

From businessday.co.za

Who's involved

  • Absa BankCo-Lead Manager and coordinator of the bond issuance
  • Harmony GoldThe gold mining company that issued the bonds and provided guarantees
  • CitigroupJoint Global Co-ordinator and underwriter for the bond offering
  • NedbankCo-Lead Manager involved in the bond issuance
  • InvestManaged the bond issuance and assumed a contingent liability as a guarantor
  • HarmonyThe company that issued the $500 million senior unsecured convertible bonds

Who could feel it

Possible knock-on effects

These are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.

  • HarmonySpeculative

    Harmony could improve its funding efficiency and diversify its capital sources through the bond issuance.

  • Absa BankSpeculative

    Absa Bank's fees and revenue might increase from its role as Co-Lead Manager.

  • CitigroupSpeculative

    Citigroup's revenue might increase from the successful execution of the $500 million bond issuance.

  • NedbankSpeculative

    Nedbank's fees and revenue might increase from its role as Co-Lead Manager.

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The entities involved

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