Tharisa (LSE:THS) has priced a US$300 million five-year senior secured Nordic bond through its wholly owned subsidiary Arxo Finance plc, with proceeds primarily intended to fund completion of the Karo Platinum Project in Zimbabwe.
The bond was priced at 98% of principal and carries an 11% coupon payable semi-annually. Tharisa said the offering was oversubscribed, with participation from international institutional investors.
Proceeds will initially be held in escrow and released once specified conditions have been satisfied. The majority of the funds are earmarked for completing Karo, while any remaining proceeds will be available for general corporate purposes.
Tharisa expects the Karo project to more than double the group’s platinum group metals production and provide it with a second operating asset alongside the Tharisa Mine in South Africa.
Settlement of the bond is targeted for 24 September 2026. The company intends to apply for admission of the bonds to ABM Fast Entry within 60 days of issuance and subsequently to Euronext Oslo Børs, or another regulated exchange, within 12 months.
DNB Carnegie and HSBC acted as joint bookrunners for the transaction.
Management indicated that funding costs could potentially be reduced as Karo moves through commissioning and its development progresses. This remains dependent on future developments.
More about Tharisa
Tharisa plc is an integrated mining and metals group focused on platinum group metals and chrome concentrates.
Its operations cover exploration, mining, processing, beneficiation, marketing, sales and logistics. The group operates the Tharisa Mine in South Africa and is developing the Karo Platinum Project in Zimbabwe.
Tharisa also has activities in downstream alloy production and long-duration energy storage technology.
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