15th Dec 2021 12:26
(Alliance News) - South32 Ltd announced on Wednesday it has refinanced its multi-currency revolving syndicated credit facility.
The refinancing has secured USD1.4 billion of commitments from lenders for a five-year term to 2026, with options to extend for up to a further two years by mutual agreement. The facility refinances the group's existing undrawn revolving credit facility that was due to expire in 2023.
The Perth, Australia-based mining and metals company said that the facility has been established as a sustainability-linked loan with measures linked to its ongoing commitment to emissions reduction and improving energy and water use efficiency.
South32 said this was in alignment with the International Council on Mining & Metals mining principles and is informed by the United Nations sustainable development goals.
South32 obtained a second-party opinion from Amsterdam-based sustainability ratings company Sustainalytics, who evaluated and provided an independent opinion on the sustainability-linked loan's framework.
The company added that its current BBB+/Baa1 credit ratings has been re-affirmed by Standard & Poor's and Moody's following the announcement of its proposed acquisition of a 45% interest in the Sierra Gorda copper mine in Chile and its increased shareholding in Mozambique-based hydro powered aluminium smelter, Mozal Aluminium.
Moody's says obligations rated Baa are subject to "moderate credit risk" and S&P says BBB ratings offer "adequate capacity to meet financial commitments, but more subject to adverse economic conditions".
Shares in South32 were up 1.0% at 203.50 pence on Wednesday in London.
By Heather Rydings; [email protected]
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