Finance in Mining
The International Finance Corporation (IFC) supports global mining operations through diverse financial methods, emphasizing the mitigation of social and environmental risks. Anticipated growth in debt (bonds) and equity investments in the mining sector from green financing is expected in 2023–2024, as companies aim to reduce carbon emissions and adopt innovative technologies.
Mining Start-ups and Capital Raising through Redeure
Redeure has been providing comprehensive financial services to its esteemed clientele for over a decade. Services include bond issues, mergers and acquisitions, structured finance, IPOs, and capital raising through Collateral Transfer. The Collateral Transfer Facility utilizes a Demand Bank Guarantee as collateral, enabling access to loans and lines of credit.
Collateral Transfer in Mining
Collateral Transfer, often colloquially referred to as a Leased Bank Guarantee, involves the transfer of a Demand Bank Guarantee from one company to another. Redeure collaborates with Providers, such as sovereign wealth funds or hedge funds, to offer Demand Bank Guarantees to mining companies seeking credit facilities.
Mining Finance Overview
Mining finance, a specialized field, involves entire departments or subsidiaries within banks and financial institutions. Approval committees consider historical data, balance sheets, business plans, and factors like political risks for loans and investments in the mining industry. Investors and lenders include banks, hedge funds, sovereign wealth funds, private equity funds, vulture funds, and venture capital.
Financing Mining Start-ups and Junior Miners
Access to bank capital for mining start-ups and junior miners is scarce, leading them to seek financing from larger miners, hedge funds, sovereign wealth funds, state-owned agencies, export credit agencies, and private equity. Specialist mining funds, like those in South Africa, have emerged, offering alternatives such as royalty financing.
Redeure, with a decade-long track record, collaborates with Providers to assist companies denied credit facilities by traditional sources in accessing credit through Demand Bank Guarantees. Utilizing Demand Bank Guarantees for credit facilities does not dilute equity for mining companies.