Zijin Mining Group (02899) announced that on June 17, 2024, the company, the issuer (a wholly-owned subsidiary of the company, Jin Ji Capital Limited) and the arranger entered into a subscription agreement. The arranger agreed to subscribe, individually and not jointly, and pay for or cause subscribers to subscribe for and pay for bonds of the issuer in an aggregate principal amount of USD 2 billion, subject to and in accordance with the terms and conditions set out in the subscription agreement. The company has unconditionally and irrevocably guaranteed the due and punctual payment of all amounts payable by the issuer under the trust deed and the bonds in accordance with the terms of the guarantee. The bonds can be converted into H shares at an initial conversion price of HKD 19.84 per H share, which represents a premium of approximately 21.57% over the closing price of H shares on the Hong Kong Stock Exchange on June 17, 2024, which was HKD 16.32 per H share. The bonds bear an annual interest rate of 1%.
Zijin Mining Group (02899) announced that on June 17, 2024, the company, the issuer (a wholly-owned subsidiary of the company, Jin Ji Capital Limited), and the arranger entered into a subscription agreement. The arranger agreed, subject to and in accordance with the terms and conditions set forth in the subscription agreement, to subscribe individually and not jointly, and to pay or cause subscribers to subscribe for and pay for bonds of the issuer with an aggregate principal amount of USD 2 billion. The company has unconditionally and irrevocably guaranteed the due and punctual payment of all amounts payable by the issuer under the trust deed and the bonds in accordance with the terms of the guarantee. The bonds can be converted into H shares at an initial conversion price of HKD 19.84 per H share, which represents a premium of approximately 21.57% over the closing price of H shares on the Hong Kong Stock Exchange on June 17, 2024, which was HKD 16.32 per H share. The bonds bear an annual interest rate of 1%.
Assuming that all the bonds are converted into H shares at an initial conversion price of HKD 19.84 per H share, the bonds will be convertible into approximately 787 million H shares, which is approximately 13.72% of the total existing issued number of H shares as at the date of the announcement and approximately 2.99% of the total existing issued number of shares as at the date of the announcement. The converted shares will rank pari passu in all respects with the H shares already issued as at the relevant record date.
After completion of the bond issue, the net proceeds of the bond subscription will be approximately USD 1.979 billion, which will be used for refinancing offshore debts of the Group.
On June 18, 2024, the company entered into a placement agreement with the placing agent to issue up to a maximum of 251.9 million placing shares through the placing agent to not less than six placing participants (who are professional, institutional and other investors) at a placing price of HKD 15.50 per placing share, representing a discount of approximately 5.02% to the closing price of H shares on the Hong Kong Stock Exchange on June 17, 2024, which was HKD 16.32 per H share.
After completion of the placement, the net proceeds from the expected placement will be approximately HKD 3.871 billion and will be used for the Group's business operations and development in overseas markets (including but not limited to mergers and acquisitions, working capital, and general corporate purposes).