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Results of HAR1 bond partial re-purchase

Harmony Gold Mining Company Limited (NYSE: HMY JSE: HAR) today announced that it had completed the partial re-purchase of its HAR1 corporate bond. A total of R281,7m of the bond’s notional value has been repurchased at a cost of some R294,6m. This represents 23.5% of the total issue due for redemption in June 2006, compared to an allocated maximum amount for the repurchase of 25% of the total issue. The re-purchase was done at a spread of 195 bps above the benchmark government issue (R152). The bond has a semi-annual coupon of 13% and was launched in 2001.

The partial re-purchase of the HAR1 bond, which was managed by Deutsche Bank, is part of Harmony’s ongoing restructuring to deal with the low Rand per kilogram gold price environment. “We are restructuring both our operations and capital structure. So far, the balance sheet restructuring has included the sale of non-strategic listed assets, the settlement of some short-term liabilities and now the re-purchase of part of the June 2006 corporate bond.” Commented CE Bernard Swanepoel.

The re-purchase was also in part due to a need in the market brought about by asset management mandate restrictions of some of our bond holders. “We have tried to accommodate the needs of some of our bond holders and at the same time looking after our cost of debt. Our experience in the corporate bond market has been a pleasant one, and is a source of capital we would like to be able to tap again in future. We are pleased with the fact that the offer was undersubscribed as this would seem to indicate confidence in Harmony.” Said Bernard.

The results of the book-build are as follows:
Notional amount of total offers accepted:R 281,7m
Re-purchase consideration:R 294,6m
Re-purchase spread:195 bps over R152
Re-purchase yield:8.81%
Re-purchase price:104.59
Statistics on the book:
Percentage of HAR1 outstanding notional re-purchased:23.5%
Weighted average spread of all offers received:184.5 bps over R152

“The repurchase demonstrates our confidence in our own financial health and future and we have been happy to be able to help some of our bondholders as part of the group’s financial restructuring and satisfy both of our objectives. In addition, we are heartened that our bond holders appear to share this sentiment.” Bernard concluded.

For more details contact:

Bernard Swanepoel
Chief Executive
+27(0)83 303 9922

Ferdi Dippenaar
Marketing Director
+27(0)82 807 3684

Brenton Saunders
Executive, Investor Relations
+27(0)83 607 4060

Vusi Magadana
Investor Relations Officer
Office: +27 11 684 0149
Mobile: +27(0)72 157 5986
This email address is being protected from spambots. You need JavaScript enabled to view it.

Annual report

Integrated annual report 2016
Integrated annual report 2017


Investor brief

Harmony Investor brief, Sep 2017
September 2017 -
Harmony Investor brief

(PDF - 6.5MB)

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