BPG Precious Metal Storage – bonds

About the Product

BPG Precious Metal Storage PLC is the parent company of the issuer and is registered in Slovenia. The company’s shares are listed on the Vienna Stock Exchange under the ticker BPGR. In partnership with the Government of Oman, BPG owns Green Tech Mining & Services LLC, the operator responsible for developing one of the largest copper and gold deposits in Oman. According to a Grant Thornton audit, the value of these deposits was estimated at $1.5–1.7 billion as of 2021. BPG holds a 51% stake in Green Tech Mining & Services LLC, while Oman Mining Company LLC (a state-owned entity) owns the remaining 49%. Under its agreement with the Government of Oman, BPG issues bonds to finance the development and launch of mining operations. Proceeds from the bond issuance will be used to purchase equipment from the Finnish company Metso, including installation and commissioning, as well as to initiate production processes. The Government of Oman aims to increase the contribution of non-oil sectors to GDP by 2040 through attracting international investment. As part of this strategy, operators of state-backed assets are required to raise funding from public markets to implement projects in partnership with the government. The development of mineral deposits is viewed as a key pillar of Oman’s economy and an opportunity to replicate the success of the oil and gas sector. The combination of high interest rates and supportive government policy makes these bonds a highly attractive instrument for international investors.