Newcrest Finance, the financing company behind Australia's largest gold producer


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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 shares

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.

newcrest finance

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