Exxaro concludes R13bn corporate refinancing
Mining and renewable-energy company Exxaro has reached financial close on R13-billion in new term refinancing facilities.
The Johannesburg Stock Exchange-listed company said on Thursday, February 5, that the refinancing had been carried out by a syndicate of nine local South African commercial banks, asset managers and international lenders and replaced existing R10-billion corporate facilities, which were scheduled to reach maturity in April.
“The new facilities are unsecured and have been concluded on normal commercial terms that are more favourable than the existing facilities,” Exxaro, which has established itself as a large black economically empowered resources company, stated in a stock exchange news announcement.
As reported by Mining Weekly last week, Exxaro has entered into binding agreements to acquire shares and claims in manganese assets held by Ntsimbintle Holdings and OM Holdings in a R11.67-billion transaction.
The involved assets, located within the globally significant Kalahari Manganese Field in the Northern Cape, comprise 74% of Ntsimbintle Mining; 19.99% of Jupiter; 100% of Ntsimbintle Marketing and Trading; 51% of Mokala; and 9% of Hotazel Manganese Mines.
Through the acquisition, Exxaro gains exposure to four operating mines, including 60.1% effective ownership in the Tshipi Borwa mine, 51% in Mokala and 9% in Hotazel Manganese Mines which operates the Mamatwan and Wessels mines.
Coal is Exxaro’s core commodity, with assets including the large integrated Grootegeluk coal mine in South Africa’s Waterberg region.
In line with its renewable-energy strategy, its ownership of Cennergi gives it access to the Amakhala Emoyeni Wind Farm of 134 MW and the Tsitsikamma Community Development Wind Farm of 95 MW.
Cennergi has entered into binding agreements with Acciona Energía to acquire majority interests in the 138 MW Gouda Wind Farm in the Western Cape and the 75 MW Sishen Solar Facility in the Northern Cape, as well as the company responsible for the operations and maintenance of these assets. The timing-linked purchase price will range between R1.7-billion and R1.8-billion.
Both assets are projects procured under Bid Window 2 of South Africa’s Renewable Energy Independent Power Producer Procurement Programme and sell electricity to Eskom under 20-year take-or-pay power purchase agreements - Sishen until 2034 and Gouda until 2035.
Gouda and Sishen are held 54.9% by Acciona Energía, 25.1% by Celenex, a majority-owned subsidiary of Royal Bafokeng Holdings; 10% by Soul City and 10% by local community trusts.
This acquisition is set to increase Cennergi’s net operating capacity by 117 MW, from 200 MW to about 317 MW, bringing the company closer to its 2030 goal of 1.6 GW managed net renewable energy capacity.
The acquisition, which advances the just energy transition, is part of a strategic journey to scale Cennergi. The transaction closing date will coincide with the transfer of ownership of the sale equity to Cennergi which is expected to occur in the first half of this year.
