Zijin Mining to issue zero-coupon guaranteed convertible bonds for US$1.5 b

Zijin Mining (2899) said on Friday it plans to issue zero-coupon guaranteed convertible bonds due 2031 for US$1.5 billion (HK$11.7 billion), with the proceeds mainly used for capital expenditures relating to the construction of the La Arena Project in Peru.

The initial conversion price is HK$63.3 per share, which represents a premium of approximately 37.19 percent over the last closing price of HK$46.14 per share.

The Bonds can be fully convertible into approximately 184.8 million H shares, representing approximately 2.99 percent of the number of issued H shares.

Zijin's shares once dived 9 percent after reaching a record high from the previous day, slipping along with the gold price slump.