Newcrest Finance, the financing company behind Australia’s largest gold producer
By Money Team Published on January 11, 2016
Money asked FIIG where to invest and its pick is the Newcrest Finance
Newcrest Finance, the financing company of Australia's largest gold producer, Newcrest Mining, offers a $US-denominated fixed-rate bond maturing in October 2022. This senior unsecured bond suits investors seeking a relatively high yield and exposure to gold from an investment-grade issuer.
The estimated yield to maturity is a high 5.87%.
Newcrest Finance is a wholly owned subsidiary and financing company of Newcrest Mining, which is Australia's largest gold producer and ranked in the top five global producers by output.
Newcrest Mining owns a portfolio of six production assets in four countries and is in the top 50 ASX-listed companies, with a market capitalisation of $10.29 billion at January 11, 2016.
Investor information
The Newcrest Finance $US bonds maturing in 2022 are senior unsecured with a current projected yield to maturity of 5.87% (subject to change).
The bonds are investment grade and rated by S&P as BBB- and Moody's as Baa3. (The credit ratings are specific to the bond identified as USQ66511AC26.)
The bonds have a final maturity of October 1, 2022, and the minimum investment per bond is $US10,000.
FIIG is a dealer and we take a small brokerage fee when we transact; this is already included in the yield-to-maturity returns. A custody service fee is also charged.
The bond is only available to wholesale investors. The minimum upfront spend for new investors is $US50,000, with $US10,000 increments applicable after the initial investment.
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