Standard Bank, Africa’s largest bank by assets, is proud to have partnered with Valterra Platinum Limited, providing a R2.5 billion bridge facility, and acting as joint Arranger for the establishment of Valterra Platinum’s R10 billion Domestic Medium-Term Note (DMTN) Programme, and Arranging its successful inaugural bond auction.
Valterra Platinum is a public company incorporated in South Africa and the world’s leading primary producer of Platinum Group Metals (PGMs). Its headquarters are in Johannesburg with marketing offices in London, Shanghai and Singapore.
The company provides a complete resource-to-market service, supplying customers with a range of mined, refined and traded metals. Valterra Platinum operates across the value chain to produce the complete range of PGMs (platinum, palladium, rhodium, iridium and ruthenium), chrome and other base metals.
“Valterra Platinum acknowledges the support provided by Standard Bank in structuring our bridge-to-bond facility as part of our broader debt financing package, as well as their guidance and assistance in establishing and listing our DMTN Programme. The success of our inaugural Bond auction marks a defining milestone for our company,” says Sayurie Naidoo, CFO at Valterra Platinum.
The bridge-to-bond facility provided Valterra Platinum with the certainty of funding and flexibility required while establishing its Johannesburg Stock Exchange (JSE)-listed DMTN Programme. This flexibility further allowed Valterra Platinum to time their inaugural issuance for the most optimal market conditions, which ultimately generated the strong demand in the bond auction and delivered an outstanding outcome for all parties involved.
Robust demand from institutional investors drove bids in excess of R5.8 billion from 23 investors. The oversubscription enabled Valterra Platinum to increase the issuance size, successfully raising R2 billion across the three notes at attractive pricing, demonstrating strong investor confidence and market demand.
“It was very encouraging to see such strong institutional investor demand for a new Issuer like Valterra Platinum. The overwhelming support and successful auction outcome underscore the market’s confidence in Valterra Platinum’s credit profile and its leading position in the market,” says Allister Lamont-Smith, Debt Capital Markets Transactor at Standard Bank Corporate and Investment Banking (CIB).
“We are proud to have partnered with Valterra Platinum in executing this landmark transaction, playing a crucial joint lead arranging role for the bridge facility and bringing a new mining Issuer to the corporate bond market. As one of the largest corporates listed on the JSE, and a key player in an industry crucial to South Africa’s economy, Valterra Platinum’s demerger from Anglo American was a transformative moment for the mining sector. Supporting Valterra Platinum through all of its core onshore and offshore funding initiatives during this pivotal transition speaks to the strength of our balance sheet and depth of our relationship. We will always work towards the best outcomes for our clients that benefit society at large,” says Kesh Ramlakun, Senior Vice President, Debt Financing Solutions at Standard Bank CIB.
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