.jpg)
2 hours ago
2
Article content
(Bloomberg) — Zijin Mining Group Co. is seeking to raise $1.5 billion from the sale of bonds that can be converted into stock as the price of gold hits record highs.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
The Chinese miner is offering convertible bonds due 2031 at zero coupon, according to terms of the deal seen by Bloomberg News. Zijin Mining plans to use proceeds to fund capital expenditure related to the construction of the La Arena Project in Peru, as well as working capital and other general corporate purposes.
Article content
Article content
The instruments carry a conversion premium of 35% to 40% above the price of a concurrent delta placement, the terms show. Banks typically propose such a placement in convertible-bond deals to facilitate hedging by investors.
Article content
Article content
Zijin Mining’s foray follows the deals it has done in recent months, with heightened geopolitical tensions and worries about the Federal Reserve’s independence helping fuel a rally in precious metals. Earlier this week, Zijin Mining subsidiary Zijin Gold International Co. agreed to buy Canada-based Allied Gold Corp., which owns mines in Africa, for C$5.5 billion ($4 billion). Zijin Gold International went public in Hong Kong last year in an initial public offering that raised $3.7 billion.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
The convertible-bond issuance follows a string of other fundraising deals by Chinese miners this month against the backdrop of soaring metal prices. Copper miner CMOC Group Ltd. last week raised $1.2 billion from the sale of convertible bonds. Jiangxi Copper Co. is also planning to raise as much as $3.6 billion from its bond issuance.
Article content
Zijin Mining, CMOC and Jiangxi Copper’s deals alone represent about 40% of the $15.6 billion in bond proceeds raised by Chinese companies in the metals and mining sector in 2025, according to data compiled by Bloomberg. Last year’s proceeds were the highest annual total since 2022.
Article content
Zijin Mining’s convertible bond involves a lockup of 90 days for the company, terms of the deal show. The investor put date is on or about Feb. 5, 2029.
Article content
UBS Group AG and Citic Securities Co. are joint bookrunners of the offering.
Article content
—With assistance from Jessica Zhou.
Article content
(Updates throughout with context.)
Article content
English (US)