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Investec Bank PLC

Investec Bank PLC
Based in London
Active in United Kingdom, Zimbabwe, South Africa, Australia, Western Ghana, Indonesia, Mali, South Africa, Botswana, Guinea, Northern Sulawesi, Tanzania
Targeted agriminerals, base metals, precious metals

Investec Bank PLC, listed in London and Johannesburg, is an international specialist banking group operating principally in the UK, South Africa and Australia; it is South Africa’s leading private banking group.

Established in 1974, its total assets (as of March 2008) were £2.2 billion in shareholder equity, £54.2 billion in third-party assets managed by the bank, and another £12.8 billion in core loans and advances [MJ 8 May 2009].

Mining has “always been a core business sector” of the group with specialist teams operating in its Commodities and Resource finance team.

Investec Asset Management is a “stand alone” part of the bank, which offers a full range of financial services, and has more than £1 billion under management, handled by three “generalist resources funds”:

Global Dynamic Resources Fund (Luxembourg)
Enhanced Natural Resources Fund (UK); and
Global Commodities and Resources Fund (Guernsey)

The latter is a long/short hedge fund investing in commodities futures and options and resource equities [MJ ibid].

Investec Asset Management also operates two specialist funds – the Global Energy Fund (UK and Luxembourg) and the Global Gold Fund (Luxembourg and UK), covering the entire energy and metals sectors, as well as investing in agricultural commodities [MJ ibid].

In January 2009, the bank acquired control of the Bibiani mine in western Ghana, after its owner, Central African Gold, allegedly defaulted on a loan of US$ 20.9 million [MJ 16 January 2009].

Investec UK is an investor in the Toka Tindung gold mine project, Northern Sulawesi (Indonesia), operated by UK-AIM listed Archipelago Resources PLC, from which German bank West LLB apparently withdrew support in January 2008 [see MAC website, 21 January 2008]

As of January 2008, the bank was the largest (10.29%) shareholder in African Diamonds PLC [Hemscott 23 January 2008]. It provided a US$ 50.3 million revolving commodity finance facility to Platmin Ltd in August 2009 [MJ 7 August 2009]

Investec’s earlier transactions have included participation with African Lion Ltd, an African mining equity fund; arranging and underwriting the Lero project in Guinea and the Mupane gold project in Botswana; the “unbundling” of Gencor’s interest in Impala Platinum Holdings in 2002; and arranging a loan for Anglo Gold’s Yatela project in Mali.

As of July 2011, Investec was the second largest shareholder (at 7.54%) in AIM-listed African Consolidated Resources, which is focussed on Zimbabwe, with 12 key projects covering gold, nickel, platinum, copper, phosphate and diamonds.

In September 2011, South Africa's Gold One mining company secured a US$210 million loan from Investec, so as to help the company acquire Rand Uranium [MJ 2 September 2011].

Shjanta Gold, a London-listed company active in Tanzania, in late 2014 signed a term sheet and mandate with Investec for two loan facilities worth US$40 million, which would be used to redeem an existing loan with FBN Bank First National Bank, South Africa) [MJ 19-26 December 2014].