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Newmont Closes Sustainability-Linked Senior Notes Offering of $1 Billion at 2.600%
DENVER / Dec 20, 2021 / Business Wire / Newmont Corporation (NYSE: NEM, TSX: NGT) (“Newmont” or the “Company”) announced today that it has received aggregate
About this update from Newmont Corporation
[{"type":"text","content":"DENVER / Dec 20, 2021 / Business Wire / Newmont Corporation (NYSE: NEM, TSX: NGT) (“Newmont” or the “Company”) announced today that it has received aggregate net proceeds of approximately $992 million, after deducting underwriting discounts (before expenses), upon the closing of its registered public offering of $1 billion aggregate principal amount of 2.600% Sustainability-Linked Senior Notes due 2032. Newmont is the first in the mining industry to issue a sustainability-linked bond, representing a further step in aligning its financing strategy with environmental, social and governance (ESG) commitments. “The successful execution of our sustainability-linked note demonstrates bondholder confidence in our ability to maintain financial strength and deliver long-term value to all of our stakeholders,” said Newmont President and CEO Tom Palmer. “This offering further aligns our financial and ESG performance, linking our commitments to climate change and gender parity. Our long history of taking a leading approach to ESG practices has positioned Newmont as the gold sector’s recognized sustainability leader and we continue to challenge ourselves and the industry through our commitment to sustainable and responsible mining.\" The Notes are senior unsecured obligations of the Company and rank equally with the Company’s existing and future unsecured senior debt and senior to the Company’s future subordinated debt. The Notes are guaranteed on a senior unsecured basis by the Company’s subsidiary, Newmont USA Limited. The coupon of the Notes is linked to Newmont’s performance against key ESG commitments regarding 2030 emissions reduction targets and the representation of women in senior leadership roles target. Earlier this year, Newmont entered into a $3.0 billion sustainability-linked revolving credit facility, also one of the first in the industry. The interest rate payable on the Notes will be increased if the Company fails to reach the stated targets by 2030. Newmont published a Sustainability-Linked Bond Framework and obtained a second party opinion on the framework from ISS ESG. The Company intends to use the net proceeds of this offering for the repurchase of (i) the Company’s outstanding 3.700% Notes due 2023, and (ii) outstanding 3.700% Notes due 2023 issued by the Company’s wholly owned subsidiary, Goldcorp Inc., for up to cert...