Zijin Mining Raises $2.5 Billion through Convertible Bonds, Placement-News-Zijin Mining Group Co., Ltd.
Summary
The issuance, which includes US$2 billion in convertible bonds and US$500 million in share placements, is Zijins largest equity financing since its establishment in 1993. Additionally, it sets a record for the lowest discount in a new Hong Kong share placement worth over USD 50 million by a mining company since 2008.While technology and internet companies listed in both Chinese and US capital markets often provide terms allowing for the swap between Hong Kong shares and US stocks, Zijins issuance in the H-share market offers relatively weak liquidity. However, the issuance was an overwhelming success, underscoring the companys growing recognition in the global capital market.The refinancing boosted Zijins cash flow and strengthened its foundation for future growth, balancing risk management and business development. The proceeds, which will be used to replace high-interest debt denominated in US dollars, will save the company nearly RMB 1 billion annually in financial expenses.Boosting growth drivers for the next five yearsMr. Given the high interest rates in the US, replacing US dollar debt through a US$2.5 billion refinancing program will substantively reduce the companys financial expenses and optimize its asset and liability structure.
Funding
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