Bloomberg News

AngloGold Plans $750 Million Bond in First Sale in Two Years

July 25, 2012

AngloGold Ashanti Ltd. (AU:US), the third- largest gold producer, is planning to sell $750 million of securities in its first offering in more than two years.

The mine operator may sell 10-year bonds to yield about 400 basis points more than similar-maturity Treasuries, according to a person familiar with the transaction. Proceeds will be used for general corporate purposes.

AngloGold last sold debt in April 2010, issuing $700 million of 5.375 percent, 10-year notes to yield 165 basis points more than benchmarks and $300 million of 6.5 percent, 30- year debentures at a spread of 200 basis points, according to data compiled by Bloomberg.

The new bonds may be rated Baa2, the second-lowest level of investment-grade, by Moody’s Investors Service, said the person, who asked not to be identified because the terms are private. Barclays Plc and Citigroup Inc. are managing the sale for the Johannesburg-based company.

To contact the reporter on this story: Sarika Gangar in New York at sgangar@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net


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Companies Mentioned

  • AU
    (AngloGold Ashanti Ltd)
    • $17.04 USD
    • 0.06
    • 0.35%
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