Pan African Resources (PAR) has become the first mining company to issue a sustainability-linked bond in the South African market.
This follows PAR subsidiary PAR Funding’s receiving formal approval from the JSE on its R5-billion Domestic Medium Term Note Programme earlier this week, and a subsequent oversubscribed bookbuild for senior second ranking secured sustainability-linked notes to the value of R800-million, or $46-million, on December 9.
The notes will list on December 13.
PAR CEO Cobus Loots says these instruments further diversify the company’s funding sources, with the proceeds to be used towards the group’s growth pipeline.
PAR, together with its subsidiaries Evander Gold Mining, Barberton Mines, Evander Gold Mines and PAR South Africa Holdings, serve as guarantors to the holders of the notes under the programme.