Standard Bank leads $130m dual-currency funding for mining company Tharisa
Standard Bank acted as co-mandated lead arranger and lender to fund a dual-currency, $130 million-equivalent facilities package for Tharisa Minerals.
By Standard Bank
We proudly acted as co-mandated lead arranger and lender to fund a dual-currency, $130 million-equivalent facilities package for Tharisa Minerals. This strategic financing is designed to support the company’s long-term growth trajectory by strengthening Tharisa’s balance sheet.
Tharisa, a prominent South African mining client and PGM producer, is embarking on a pivotal phase: the transition to underground mining. This strategic shift is crucial for its long-term sustainability, requiring significant capital and a robust, flexible financial structure. Securing financing that aligns with its specific operating profile and capital programme while navigating commodity cycles was paramount for Tharisa to execute its vision confidently and secure its future in the dynamic mining landscape.
As a trusted African mining finance partner, we collaborated closely with Tharisa and co-lender Absa to structure a fit-for-purpose solution. We provided a 4-year $80 million term loan (with a $20 million accordion) paired with a ZAR900 million (about $55.3 million) revolving credit facility. This dual-currency package offers Tharisa the flexible liquidity needed, precisely matching its operating profile. The proceeds refinance existing debt and fund general corporate and working capital, including vital investments in the sustainability of the Tharisa Mine and its transition to underground operations. Our deep sector expertise ensured certainty of funding and seamless coordination throughout the entire process.
This comprehensive funding package delivers substantial value, significantly reducing Tharisa’s cost of capital, extending debt maturities and enhancing overall financial flexibility. This empowers Tharisa to continue its crucial investment in a safe and sustainable transition. The deal directly aligns with our purpose of driving Africa’s growth, supporting a key PGM producer whose robust production base contributes significantly to South African exports and job creation. Our team brought invaluable insights and leadership to ensure a successful outcome for this complex transaction.
Our ability to structure and mobilise a complex dual-currency package for a South African mining client such as Tharisa, in close partnership with a co-lender, highlights our deep mining expertise. This transaction reinforces the strength of our market-leading loan franchise in Africa, demonstrating our commitment to delivering strategic, value-enhancing outcomes for our clients and the continent.