Bank of China contributes to a $5 billion USD syndicated loan to Anglo American for refinancing purposes

Project narrative

In March 2013, mining giant Anglo American signed a $5 billion, five-year loan refinancing via a group of 28 banks. The loan pays a margin of 75 basis points (bps) over LIBOR for an all-in interest rate of 1.19783%. The financing was intended to replace an existing $3.5 billion credit facility originally agreed to in July 2010 in addition to a $2 billion facility for majority-owned diamond miner, De Beers, from Oct. 2011. The loan was coordinated by Commerzbank and Mizuho Corporate Bank and was structured as a self-arranged club deal, and banks committing to the financing were ANZ Banking Group, Bank of America Merrill Lynch, Bank of China, Bank of Tokyo-Mitsubishi UFJ, Barclays Bank, BBVA, BNP Paribas, Citibank, Commerzbank, Credit Agricole CIB, Credit Suisse, EDC, Goldman Sachs, HSBC, JP Morgan, Lloyds TSB, Mizuho Corporate Bank, Morgan Stanley, National Australia Bank, Royal Bank of Canada, Royal Bank of Scotland, Santander, Scotiabank, Standard Chartered Bank, SMBC, Toronto-Dominion Bank, UBS, and Westpac. The financing was well received in the market, closing oversubscribed, one of the sources said, despite a backdrop of disappointing results and the miners’ conflict in South Africa.