Simmons & Simmons has advised KNG Securities LLP as lead manager and sole bookrunner on a $60m US dollars issue of secured exchangeable bonds by Gold Exchangeable Limited, which are exchangeable into shares in the SPDR Gold Trust (the largest physically-backed gold exchange traded fund in the world).

This is the first exchangeable bond issued in the European market where the underlying is a physically-backed gold exchange traded fund.

Mandalay Resources Corporation, through its wholly-owned subsidiary Mandalay Resources Finance Limited, will borrow the proceeds of the secured exchangeable bonds from Gold Exchangeable Limited under the terms of a loan agreement and related funding agreement which together mirror the terms of the secured exchangeable bonds. Mandalay Resources Corporation is guaranteeing Mandalay Resources Finance Limited’s performance under the loan agreement and related funding agreement.

The Simmons & Simmons team was led by capital markets partner Piers Summerfield and managing associate Tony Geffin, supported by associates Winsy Ng, Alex O’Brien and Katherine Arden.

A separate team led by James Bresslaw advised the Trustee.

Commenting on the transaction, Piers Summerfield said: “We were pleased to advise KNG on this innovative and complex transaction which showcases the strength of the Simmons & Simmons debt capital markets practice.”