Search Fixed Income Investors Investors Fixed income investors SHARE This factsheet provides a high level overview of the Group’s main financing arrangements as at 30 June 2021. Net debt management The Group’s policy is to hold the majority of its cash and borrowings at the corporate centre. Business units may from time to time raise borrowings in connection with specific capital projects, and subsidiaries with non-controlling interests have borrowings which are without recourse to the Group. Other than the impact of South African exchange controls, which framework is currently evolving in line with global best practice, the only restrictions to cash and cash equivalents relate to cash which is required to cover initial margin on trading exchanges and cash and cash equivalents which are held in joint operations where the timing of dividends is jointly controlled by the joint operators, restricted cash as at 30 June 2021 amounted to $529m. For more detail on Financial Risk Management please see the notes to the Consolidated Financial Statements. Access to cash The majority of Group cash is held at the London or South African corporate centres. It is company policy for excess cash balances to be repatriated to the corporate centres by way of dividends or deposits. The remaining cash balances are held by the businesses for local working capital purposes. Cash held at the London corporate centre and by the Copper and Coal Australia businesses is primarily invested in highly rated, instant access USD-denominated money market and treasury funds. Cash held in South Africa is first applied inter-group and any residual cash is invested in rated money market funds, bank deposits as well as government bonds through repo transactions. As the Group operates in South Africa, all subsidiaries of the Group registered in South Africa are subject to current South African Exchange Control Regulations. Most transactions of a revenue nature would not usually require prior SARB approval, although there are administrative and reporting requirements. These regulations are not expected to have a material effect on the ability of the Group to meet its ongoing obligations. On 26 February 2020, the South African Minister of Finance announced in his Budget Speech that the country would shift from a policy of exchange controls to a risk-based capital flow management system in line with international best practice. Subsequently, on 24 February 2021, the South African Minister of Finance announced that from 1 March 2021 specific rules for companies with a primary listing offshore will be automatically aligned to current foreign direct investment rules. Therefore, separate disclosure of the South African cash and debt balances of the Group will no longer be relevant, and this practice has been discontinued in our accounts. During 2021, the South African National Treasury and the Reserve Bank will continue to develop the legislative framework for the new capital flow management system announced in the 2020 Budget. This framework is expected to be substantively completed in 2021. At 30 June 2021, the Group maintained a conservative liquidity position of $19.2bn comprised of $10.9bn of cash and $8.3bn of undrawn committed bank facilities. Of the following committed bank facilities, only the Anglo American Capital plc Revolving Credit Facility ($4.5bn) and bilateral facility ($0.2bn) are guaranteed by Anglo American plc, both are due to mature in 2025 In April 2020, the Group signed a new $2.0bn revolving credit facility with an initial maturity date of April 2021. After the Group’s $1.0 billion bond issuance in March 2021, the Group issued a notice of cancellation for the facility, which became effective in March 2021 and, accordingly, this facility is no longer available. As at 30 June 2021, the material committed bank facilities comprised the following: Borrower Currency Total committed bank facilities (bn) Drawings under committed facilities (bn) Undrawn committed facilities (bn) Maturity Financial Covenants Anglo American Capital USD 4.7 - 4.7(1) 2025 None Anglo American South Africa ZAR 15.2 - 15.2(2) 2021 - 2023 Yes(3) Anglo American Platinum ZAR 11.8 0.3 11.5(4) 2021 - 2024 Yes(3) Kumba Iron Ore ZAR 8.0 - 8.0 2024 Yes(3) 1. Pricing on this core credit facility is subject to a long term credit rating margin grid with a floor at BB+ (S&P) and Ba1 (Moody’s). 2. Includes ZAR2.2billion in respect of facilities with 364 day maturity and ZAR1.7 billion in respect of facilities with 18 month maturity which roll automatically on a daily basis, unless notice is served. 3. Financial covenants are based on maximum net debt to tangible net worth ratios and minimum tangible net worth values. 4. Includes ZAR1.0 billion in respect of facilities with 364 day maturity and ZAR2.8 billion in respect of facilities with 18 month maturity which roll automatically on a daily basis, unless notice is served. Drawn Debt Maturity Profile At 30 June 2021, the group had $10.2bn of senior unsecured bonds outstanding in the European EMTN and US144a markets. The bonds have a relatively flat maturity profile through to 2031, along with a long term 2050 maturity. All the Group bonds in issuance, or the relevant programme, are guaranteed by Anglo American plc. None are subject to financial covenants or coupon step ups. The debt maturity profile is stated based on contractual repayment obligations including derivative mark to markets and excluding accrued interest. The Group uses interest rate and cross currency swaps to ensure that the majority of the its borrowings are floating rate US dollar denominated. These swaps are guaranteed by Anglo American plc and are not subject to any further credit support such as Credit Support Annex or collateral arrangements. At 30 June 2021, the following bonds were retained as fixed rate exposures; $193 million 5.375% due April 2025, $750 million 5.625% due April 2030, $500 million 3.95% due September 2050 and $99 million 5% due May 2027. Prior to the bond buy back transaction, a further $557 million 5.375% due April 2025 was retained as a fixed rate exposure at 31 December 2020. All other bonds at 30 June 2021 and 31 December 2020 were swapped to floating interest rate exposures. Group simplified corporate structure 1. Issuer under EMTN and US 144a transactions – guaranteed by Anglo American plc, borrower under US$4.7bn Revolving and Bilateral Credit Facilities – guaranteed by Anglo American plc, principal financing vehicle outside of South Africa. 2. Borrower under a number of bank facilities - guaranteed by AASA, principal financing vehicle for South African companies. Related content ISSUER DOCUMENT DOWNLOADS Read more Issuer Document Downloads EMTN INVESTOR DOWNLOADS Read more EMTN Investor Downloads USD INVESTOR DOWNLOADS Read more USD Investor Downloads FUNDING FACTSHEET AS AT 30 JUNE 2021 Download full PDF Funding Factsheet as at 30 June 2021 GROUP SIMPLIFIED STRUCTURE Download full PDF Group simplified structure OUTSTANDING NOTES AS AT 31 DECEMBER 2020 Download full PDF Outstanding notes as at 31 December 2020 AASAF INVESTOR DOWNLOADS Read more AASAF investor downloads 10 Dec 2021 Investor Update Investor calendar Our websites Australia Brazil Chile China Finland Peru South Africa Group Foundation Kumba Iron Ore Platinum Group Metals United Kingdom Sign up for alerts Be notified of any news, reports or updates straight to your email address Sign up and get the latest news Stay in touch Keep up to date on social media or contact us with any other information Facebook LinkedIn Twitter Instagram Flickr Slideshare YouTube Glassdoor Privacy policy Accessibility Terms and conditions Site map Cookie policy Cookies Settings YourVoice UK Modern Slavery Act Copyright © 2021 This site uses first and third party Necessary, Performance and Marketing cookies to enable basic functionality, add personalisation and understand how our site is used, and to show relevant advertisements. 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