25 May Glencore finalises $7.7b loan
Mining and commodities giant Glencore (LSE:GLEN) finalised a US$7.7 billion loan from 60 banks as the mining giant strengthens its balance sheet after a raw-materials downturn.
Lenders put forward more than $10 billion and the loan has an all-in cost of 95 basis points above the three-month London offered rate.
Paul Gait, London-based senior analyst at Sanford C. Bernstein & Co, which oversees $479 billion of assets, said this is a signal that the market is open. “People were concerned that they wouldn’t be able to refinance their debt.”
The new loan replaces an $8.45 billion revolving credit facility. The company said the smaller size reflects the current and projected needs of the business.
The Swiss company is currently selling two coppers mines and is researching options for a Kazakh gold project. It is also looking to sell an additional 9.9 per cent of an agriculture unit after a 40 per cent stake sale earlier this year.