Lenders agree to increase Royal Bafokeng Resources’ debt facilities to R3bn

25th September 2018 By: Simone Liedtke - Creamer Media Social Media Editor & Senior Writer

Nedbank and First Rand Bank, trading through its Rand Merchant Bank division, have agreed to increase Royal Bafokeng Resources’ (RBR’s) existing debt facilities from R2-billion to R3-billion.

RBR, a subsidiary of Royal Bafokeng Platinum (RBPlat), earlier this year entered into an agreement to acquire Rustenburg Platinum Mines’ 33% interest in the Bafokeng Rasimone Platinum Mine joint venture (JV) for about R1.86-billion.

The lenders’ agreement to increase RBR’s debt facilities was a key condition to the agreement.

The transaction still remains subject to the fulfilment of a number of conditions precedent, including approval by RBPlat shareholders and approval by the Department of Mineral Resources in terms of Section 11 of the Mineral and Petroleum Resources Development Act.