GF Securities (Hong Kong) Assists Zijin Mining in Issuing $2 Billion Overseas Convertible Bonds and $500 Million H Share Placement

2024-06-20 16:41 GF Securities (Hong Kong)

Before the trading session on June 18, 2024, Zijin Mining Group Co., Ltd. (A-share: 601899.SH / H Share: 2899.HK) (hereinafter referred to as the "Company" or “Zijin Mining”) announced that it plans to issue USD 2 billion of overseas convertible bonds ("Convertible Bonds") due 2029, with a coupon rate and yield to maturity of 1.00%, and an initial conversion price of HKD 19.84 per H Share, representing a premium of approximately 21.57% over the closing price of HKD 16.32 per H Share on June 17, 2024. The net proceeds from the Convertible Bonds issuance are expected to be approximately USD 1.979 billion.
Meanwhile, the Company also proposed to placed USD 500 million of new H Shares under the general mandate, issuing approximately 252 million new H Shares at the Placing Price of HKD 15.50 per H Share, representing a discount of approximately 5.02% to the closing price of HKD 16.32 per H Share on June 17, 2024. The net proceeds from the placement are expected to be approximately HKD 3.871 billion.

The net proceeds from the Convertible Bonds issuance will be used for the refinancing of the Company's offshore indebtedness, while the net proceeds from the placement will be used for business operation and development in the overseas market. This is the first equity-related refinancing in the Hong Kong market of Zijin Mining since its H Share listing, setting the record for the largest overseas convertible bonds issuance by an A+H Share listed company and the largest overseas convertible bonds issuance by a mining enterprise in the Asia-Pacific region. GF Securities (Hong Kong) acted as the Joint Lead Manager in the transactions.
In convertible bonds and new H Share placement transactions, GF Securities (Hong Kong) provided the Company with professional advice and opinions on transaction structure, project execution, market promotion, and pricing strategy. Within a limited timeframe, GF Securities (Hong Kong) helped the Company achieve its expected goals and objectives, gaining the Company's recognition.
Upon completion of this convertible bonds and new H Share placement, the raised funds will further optimize the capital structure of Zijin Mining, effectively supplement working capital, and provide reliable support for the Company's business operations and overseas expansion, which is of great significance for Zijin Mining's long-term development.
Leveraging its deep project experience and solid professional capabilities, GF Securities (Hong Kong) actively participated in the market promotion work at key stages of the Company's issuance, establishing good communication channels with investors. GF Securities (Hong Kong) also efficiently mobilized its various resources and advantages to assist the Company in the bookbuilding process, helping to ensure the success of this issuance.
Going forward, GF Securities (Hong Kong) will uphold an international perspective and wholeheartedly provide high-quality investment banking services across the entire industry chain and life cycle, to support more outstanding Chinese enterprises to further explore overseas capital markets.
 
Note: "GF Securities (Hong Kong)" referred to in this text includes GF Holdings (Hong Kong) Corporation Limited and/or its relevant subsidiaries established in Hong Kong. Completion of the bond subscription is subject to the fulfillment and/or waiver of the conditions precedent set out in the subscription agreement. Additionally, the subscription agreement may be terminated under certain circumstances. As the transactions contemplated under the subscription agreement may or may not be completed, the bonds may or may not be issued or listed, and/or the conversion shares may or may not be issued or listed. As the completion of the placement is subject to the placement agreement not being terminated and the fulfillment (or waiver) of various conditions under the placement agreement, the placement may or may not proceed.
Disclaimer: The information on this page is prepared by GF Holdings (Hong Kong) Corporation Limited (the "Company") for reference purposes only and does not constitute and should not be regarded as an offer, solicitation, invitation, or recommendation to buy or sell any investment products. The data provided herein is offered by the Company in good faith and the Company believes the data sources to be reliable, but the Company does not guarantee the accuracy, completeness, or correctness of such content, and you should not rely on it. The Company, its affiliates, directors, officers, and employees shall not be liable for any loss incurred by any person due to the use of this page. The Company reserves the right to modify the content of this page without prior notice.