Ecobank underwrites 40 percent of BNC $20m bond

Pan-African financial institution Ecobank has underwritten nearly 40 percent of the $20 million Bindura Nickel Corporation bond whose proceeds would finance the restart of the company’s smelter, Mwana Africa chief executive Kalaa Mpinga said today.

BNC and Freda Rebecca mines are local units of Mwana Africa.

The long term debt instrument which opened on December 5 closed last Friday.

“There were 32 institutions that participated and Ecobank underwrote close to 40 percent of that particular bond,” Mpinga said.

The bond is structured as a secured fixed-rate coupon bond, redeemable in United States dollars. It carries a semi-annual coupon, payable in arrears over its five-year tenor. It was awarded Prescribed Asset Status by the Zimbabwean Ministry of Finance and Liquid Asset Status by the Reserve Bank of Zimbabwe.

Mpinga said BNC is negotiating with the National Railways of Zimbabwe (NRZ) for viable transport costs and will do a trial shipment in April as it prepares for tolling arrangements with regional companies after the restart of the smelter

Ecobank Zimbabwe managing director Daniel Sackey said the bank was hopeful that the economy would recover anchored on strong growth from the mining sector.

“Ecobank is delighted to be part of this transaction, which not only supports BNC in its quest for revenue growth and to significantly boost Zimbabwe’s capacity to promote value addition in the mining sector,” Sackey said.

“He said the transaction reaffirmed Ecobank’s commitment to support the development of companies operating in strategic sectors, thus bringing additional growth to African economies.”-The Source

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