Sibanye secures €500m green loan to develop its Keliber lithium project
Summary
JSE- and NYSE-listed Sibanye-Stillwater has executed a 500-million green loan financing facility for its Keliber lithium project, in Finland, through its subsidiary Keliber Technology Oy.The company explained that the green loan secures the final capital expenditure funding required for the construction and development of its lithium mining, processing and refining facilities in Kaustinen, Kronoby and Kokkola, Finland, respectively.The green loan completes the full financing requirement for the Keliber lithium project, while also being a significant injection of capital for Sibanye to improve financial flexibility and liquidity.It also helps to ensure available group cash and debt facilities are ring-fenced for operational and corporate requirements.The funding package provides cost-effective, long-term funding for the balance of the Keliber projects funding needs and significantly improves group liquidity, effectively ring-fencing the existing group facilities for operational requirements. [It also] confirms the viability and [environmental, social and governance] credentials of the Keliber lithium project, as well as underscoring its strategic importance to the European clean energy transition," Sibanye CEO Neal Froneman said on August 22.The green loan is a distinctive credit facility, comprising a bank-financed 250-million Export Credit Agency (ECA) guaranteed tranche, a 150-million tranche provided by the European Investment Bank (EIB) and a 100-million syndicated commercial bank tranche. This marks the first EIB financing support for mining critical raw materials in the EU and is part of the move towards the EUs strategic autonomy. Sibanye said the syndicated loan tranche was oversubscribed, with seven international commercial banks participating, which is in addition to the loan from EIB.Aside from using the proceeds of the facilities to develop, build and maintain the Keliber lithium project, one of the key terms is for the amortised repayment profile to be tied to projected cash flows, with ultimate maturities of seven to eight years at a variable interest rate linked to the Euro Interbank Offered Rate.The facility borrower is Keliber Technology Oy, and it will be guaranteed by Sibanye-Stillwater, Stillwater Mining Company, Sibanye Gold, Sibanye Rustenburg Platinum Mines, Kroondal Operations, Eastern Platinum, Western Platinum, Sibanye, Sandouville Refinery and Keliber Oy.Keliber Technology Oy and Keliber Oy will simultaneously join the guarantor group for Sibanye-Stillwaters $1.2-billion bonds, $1-billion revolving credit facility, R6-billion revolving credit facility and the silicosis guarantee facility. "The [Keliber lithium] project has already taken determined steps forward with the construction of the refinery and mining sites.