Zijin Mining (HKG:2899, SHA:601899) will issue $1.5 billion of zero-coupon guaranteed convertible bonds due 2031 under a general mandate, according to a Friday Hong Kong bourse filing.
The bonds will be convertible into Hong Kong-listed shares at an initial conversion price of HK$63.30 per share.
Assuming full conversion, the bonds would convert into about 184.9 million shares, equivalent to about 3.1% of existing Hong Kong-listed shares and about 0.7% of total issued share capital.
Net proceeds are expected to be about $1.53 billion, which will be used primarily for capital expenditure on the La Arena Project in Peru, with the remainder for working capital and general corporate purposes.
The bonds will be listed on the Vienna MTF, while the conversion shares will be listed in Hong Kong.
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