Tharisa PLC (THS ) has successfully priced a US$300 million five-year senior secured bond issued at 98% of principal, with a semi-annual coupon of 11%.
The bonds will be issued by Arxo Finance PLC, a wholly-owned subsidiary of Tharisa.
The offering was oversubscribed and attracted strong demand from a broad base of international institutional investors across Europe, the United Kingdom, the Middle East, North America, and Asia.
Settlement of the bonds is expected to occur on 24 September 2026.
The proceeds will be used primarily to complete the development and construction of Tharisa’s Karo platinum project in Zimbabwe, where first ore to the mill is expected in the first quarter of 2027.
Application will be made for the bonds to be listed on the ABM Fast Entry within 60 days of issue. The bonds will likely be listed on the Euronext Oslo Stock Exchange within 12 months of the issue date.
DNB Carnegie and HSBC acted as joint bookrunners in connection with the offering.
“This is a highly satisfactory outcome for Tharisa, enabling us to complete the Karo Platinum Project, more than double our PGM output and add a second tier one asset to our portfolio,” said Phoevos Pouroulis, chief executive of Tharisa.
“The efficiency of the corporate bond market was evident, with more than 150 investors engaging with the Tharisa growth story and a broad group supporting the offering. We would like to thank investors for the time they have invested in understanding our business, and we look forward to maintaining these relationships and building our credit story over time. This response follows our continued operational de-risking of the project and the conclusion of key regulatory and commercial agreements, including the SMLA and the Valterra offtake agreement. As an inaugural issuance under this structure, the pricing reflects both the jurisdiction in which the project sits and the fact that Karo is still in construction. We regard that as a starting point rather than a destination. As the project is commissioned and we establish a track record with this investor base, we would expect our cost of capital to reflect that progress. Our focus now turns to further redefining our resource base and completing the construction of the Karo platinum project.”
View from Vox
The success of this bond issue never really looked in doubt, given Tharisa’s long track record of platinum production in South Africa, its consistent ability to generate cash, and the obvious potential upside at Karo. Now the bonds have been priced and the money’s coming in, it’s full steam ahead with development at Karo. Production there will be a major step up for the company and will be a considerable feather in its cap.