Newmont issues industry's first sustainability-linked bond

By Dominic Ellis
Newmont Corporation estimates that net proceeds from its sustainability-linked bond will be approximately $992 million

Newmont Corporation is claiming a mining industry first after announcing a sustainability-linked bond.

The pricing of its public offering of $1 billion aggregate principal amount of 2.600% sustainability-linked senior notes due 2032. Subject to customary conditions, the offering is expected to close on December 20.

The Notes will be senior unsecured obligations of the Company and will rank equally with the Company’s existing and future unsecured senior debt and senior to the company’s future subordinated debt. The Notes will be guaranteed on a senior unsecured basis by subsidiary Newmont USA.

Newmont said the bond represents a further step in aligning its financing strategy with ESG commitments. The coupon of the Notes will be linked to Newmont’s performance against the 2030 emissions reduction targets and the representation of women in senior leadership roles targets. Earlier this year, Newmont entered into a $3 billion sustainability-linked revolving credit facility.

The interest rate payable on the Notes will be increased if the company fails to reach the stated targets by 2030. 

Newmont estimates that the net proceeds to us from the offering will be approximately $992 million, after deducting estimated discounts (before expenses). 

BMO Capital Markets Corp., Credit Suisse Securities (USA), Goldman Sachs & Co. and J.P. Morgan Securities will act as joint book-running managers for the offering and Credit Suisse Securities (USA) will also act as sustainability-linked bond structuring advisor for the offering.

Newmont is a leading gold company and a producer of copper, silver, zinc and lead, with assets in North America, South America, Australia and Africa.

Sustainability-linked bonds are now booming, although questions remain over their authenticity, as debt issuers are pushing the boundaries of what is 'sustainable', as the label can cut costs.

To read Newmont's 2020 Sustainability report, click here.


Featured Articles

The Battle for Control of Rare Earth Minerals Supply Chain

As Australia dilutes China's control of rare earth minerals mines, we look at the struggle for control of the 'magnet minerals' driving clean energy tech

Critical Minerals Driving China's Growing Africa Investments

China's investment in African growing fast as it invests in infrastructure around minerals essential to the global energy transition, especially lithium

Canadian Gold & Uranium Head Top-Ranked Mines

Mining Journal Intelligence 2024 mines report shows gold, uranium, copper & lithium dominating in wake of clean energy drive

Gold Nanoparticle Breakthrough a Sustainability Fillip


South Africa Mining Sector Holds Breath on Nationalisation

Supply Chain & Operations

Worley: The Mining Professional Services Giant

Supply Chain & Operations