Navoi Mining & Metallurgical Company (NMMC) announced Friday it has successfully placed a new $500 million corporate bond in London, on terms that it believes would help alleviate financing costs.
NMMC, a Uzbekistan state-owned enterprise, is currently the fourth-largest gold producer in the world. Its operations are backed by the massive Muruntau deposit in the Kyzylkum Desert and an estimated 150 million oz. of gold resources across the region.
The new bond placement, says NMMC, was supported by favorable capital market conditions. The notes carry a tenor of five years and a coupon rate of 6.75% per annum.
The notes were issued under both Regulation S and Rule 144A under the US Securities Act, which gave a broader pool of investors access to the offering.
Citi, JP Morgan, Société Générale and MUFG served as joint bookrunners and joint lead managers on the transaction. The order book reached a peak of over $2.3 billion, or more than 4.6x oversubscribed, NMMC said.
“The results of the new notes offering on international capital markets demonstrate investor confidence in the economic reforms underway in Uzbekistan, as well as in NMMC’s operations and the prospects for its sustainable development,” NMMC stated in a press release.
Proceeds from the placement will be used to further optimize and diversify the company’s existing credit portfolio on more favorable terms, it added.
NMMC’s bond listing on the London Stock Exchange serves as a prelude to an initial public offering (IPO) later this year. The Uzbek government has proposed to sell up to 5% of the company in the IPO.
