Major mining group CMOC issued one-year zero-coupon convertible bonds value at USD1.2 billion on 26 January, with Freshfields, Llinks Law Offices and Linklaters providing legal support.
The bonds, issued through CMOC Capital, an overseas indirect subsidiary of CMOC, have an initial conversion price of HKD28.03 (USD3.59) per share, representing a premium of 28.7% to the H-share closing price of HKD21.78 on the signing date.
The issuance was nearly 10 times oversubscribed, marking the highest conversion premium for a one-year convertible bond listed in Hong Kong and the largest such issuance by size on the HKEX in the past five years.
Freshfields acted as the issuer’s international legal counsel, led by partners Bing Guan and David Yi. Llinks Law Offices advised on PRC law, with partners Grant Chen and Zhang Zhengyi leading the team.
Linklaters advised the underwriters on international legal matters, led by partner Taiki Ki.
CMOC, listed on the HKEX and SSE in 2007 and 2012, respectively, specialises in the mining, processing and trading of base and rare metals, with operations across Asia, Africa, South America and Europe.
The deal announcement states that the proceeds from the offering will be used to support the expansion, optimisation and ongoing capital expenditure of its overseas resource projects, enhance working capital flexibility, and for general corporate purposes.
