Absa Capital acts as joint bookrunner for two Anglo American bonds

Absa Capital, the corporate and investment banking division of Absa Bank Ltd, acted as joint bookrunner in the issuance of two senior unsecured bonds to the value of R2 billion or $260 million for Anglo American SA Finance Limited.

Anglo American SA Finance Limited (zaAA / A1.za) is a full subsidiary of Anglo American plc (A1 Stable / AA Stable). The bonds comprised a R600 million 5-year floating rate note (FRN) and a R1.4 billion 7-year fixed rate note. The total orderbook was 2,1x subscribed.

The 5-year FRN priced at the 3-month Jibar + 138 basis points, while the 7-year note priced over the R204 government benchmark rate + 149 basis points.

“Market demand for quality corporate credits remains strong. This was reflected not only in the size of Anglo American’s orderbook, but also by the strong support for longer tenors,” says David Renwick, Head of Global Finance at Absa Capital.