International Mining & Infrastructure Corporation (LON:IMIC) has raised US$15mln via an unsecured bond issue taken up by institutional investors.
The debt carries a coupon of 8.75%, which is paid semi-annually. It is due for repayment in October 2016.
The cash injection will help fund the company’s growth strategy and will also be used for “general corporate purposes”.
IMIC chairman Haresh Kanabar said: “We are delighted to have raised US$15 million through this bond issue, which further builds our available financial resources for the delivery of our strategy to unlock the value of iron ore in Africa.
“This bond is unsecured, reflecting institutional support for IMIC’s development strategy.”
Its bid for Cameroon focused Afferro Mining (LON:AFF) is one leg to this strategy. On Wednesday, the group said it was ready to bid between 100 and 140 pence a share for the iron ore explorer.
IMIC, via its relationship African Iron Ore Group, also plans to be a leader in delivering infrastructure to newly emerging mining districts of west and central Africa.