The share price of Royal Bafokeng Platinum (RBPlat) fell 5.4% to R33 on Wednesday morning after it announced it hoped to raise R1.2bn via an accelerated bookbuild. Although RBPlat is raising the capital by selling bonds, shareholders may suffer a dilution as the bonds can be converted into ordinary shares. The shares underlying the convertible bonds amounted to about 13.5% of RBPlat’s shares in issue, the company said in its statement. The bonds mature in five years and will pay a fixed coupon of between 6.5% and 7% a year. RBPlat said the R1.2bn it intended to raise would be used to help fund ramping up Styldrift I from 50,000 tonnes a month to 150,000 tonnes a month by the end of 2018. The project was budgeted to cost R4.75bn, of which RBPlat’s share was R3.2bn, the company said. The mining group said the bond offering would secure the remaining funds needed since it recently secured R2bn debt facilities. RBPlat appointed Morgan Stanley & Company International and Rand Merchant Ba...

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