April 20, 2016 / 12:52 PM / 4 years ago

Botswana's BCL Mine plans $250m bond to pay for acquisitions

GABORONE (Reuters) - Botswana’s largest copper and nickel producer, BCL Mine Limited plans to raise $250 million through a bond open to both local and foreign players to finance acquisitions, the state owned company said on Wednesday.

Acting divisional manager Tobokani Mosetlha told a media briefing that the firm has engaged Barclays Africa group to facilitate the bond issuance planned for later this year. He did not give an exact date for the bond issue.

“The funds would be used to settle a $100 million facility we recently acquired from Barclays as well as finalise the acquisition of a 50 percent stake in Nkomati Mine in South Africa,” Mosetlha said.

“Due to the size of the bond, the plan is to open it to both foreign and local investors.”

BCL mine incurred a 1.2 billion pula ($116 million)loss in operating costs in 2015 due to a slump in commodity prices, said Mosetlha.

He also said that at the end of February, the copper and nickel miner owed its 620 listed suppliers 595 million pula with 452 million pula owed to local suppliers and 143 million pula to foreign companies.

($1 = 10.6610 pulas)

Writing by Nqobile Dludla; Editing by James Macharia

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