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Overview

Bank of China contributes to ZAR 6 billion syndicated revolving credit facility with Sibanye Gold Limited for working capital purposes

Commitments (Constant USD, 2023)$89,001,582
Commitment Year•2016Country of Activity•South AfricaDirect Recipient Country of Incorporation•Multiple JurisdictionsOverseas Jurisdiction•South AfricaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 14, 2016
Last repayment (originally scheduled)
Nov 14, 2019

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Absa Bank Limited
  • First Rand Bank Ltd.
  • Nedbank Ltd
  • Standard Bank of South Africa Limited (Standard Bank)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Aquarius Platinum (South Africa) Proprietary Limited
  • Sibanye Rustenburg Platinum Mines Proprietary Limited

Private Sector

  • Sibanye-Stillwater Ltd. (formerly Sibanye Gold Limited)

Guarantors

Joint Venture/Special Purpose Vehicles

  • Aquarius Platinum (South Africa) Proprietary Limited
  • Rand Uranium Proprietary Limited
  • Sibanye Rustenburg Platinum Mines Proprietary Limited

Loan description

Bank of China contributes to ZAR 6 billion syndicated revolving credit facility with Sibanye Gold Limited for working capital purposes in South Africa 2016

Grant element•0%Interest rate (t₀)•10.41667%Interest type•Variable Interest RateMaturity•3 years

Narrative

Full Description

Project narrative

“On November 14, 2016, Sibanye Gold Limited — a special purpose vehicle that operates mines and processing facilities in South Africa and the United States focused on platinum group metals (PGMs) like platinum, palladium, and rhodium, as well as gold (including the the Beatrix, Driefontein, Kloof, and Cooke 4 mines in South Africa's Witwatersrand Basin, the Stillwater Mine and the East Boulder Mine in Montana, and the Columbus Metallurgical Complex in Columbus Montana) — signed a ZAR 6 billion syndicated revolving credit facility (RCF) agreement with Nedbank Limited, Absa Bank Limited, The Standard Bank of South Africa Limited (all acting through their respective Corporate and Investment Banking divisions), FirstRand Bank Limited (acting through its Rand Merchant Bank division) and the Johannesburg Branch of Bank of China for working capital purposes. Each member of the syndicate contributed ZAR 1.2 billion. The RCF carried a 3-year maturity (final maturity date: November 15, 2019), an interest rate of JIBAR plus a 2.4% margin, and a 2% penalty (default) interest rate. Rand Uranium Proprietary Limited, Sibanye Rustenburg Platinum Mines Proprietary Limited, and Aquarius Platinum (South Africa) Proprietary Limited served as the loan’s guarantors. The 2016 RCF was retired and refinanced with a ZAR 5.5 billion RCF on October 25, 2019.

Staff comments

1. Sibanye Gold Limited, now known as Sibanye-Stillwater, is a multinational mining and metals processing company. It operates mines and processing facilities in South Africa and the United States, primarily focused on platinum group metals (PGMs) like platinum, palladium, and rhodium, as well as gold. Stillwater Mining Company was acquired by Sibanye Gold Limited for $2.2 billion in February 2017. 2. The revolving credit facility agreement can be accessed in its entirety via https://www.sec.gov/Archives/edgar/data/1561694/000155837017002504/sbgl-20161231ex435f85ab4.htm and https://www.dropbox.com/scl/fi/gccxgmcyc3ltk6vck35ti/sbgl_Ex4_35.pdf?rlkey=ppw50eop4zq2horrblj5pn5f5&st=l52ycp2p&dl=0 3. AidData estimates the interest rate by taking 6-month average JIBAR rate at the time of commitment (8.01667%) plus a 2.4% margin, which equals 10.41667%. For more information on JIBAR, visit https://clientportal.jse.co.za/downloadable-files?RequestNode=/Safex/mtmdata/Jibar%202016