On January 29, Zijin announced that it issued US$1.5 billion worth of convertible bonds at zero coupon, under its general mandate. The bonds, which can be converted into the company’s H-shares, were offered through a wholly-owned subsidiary, Jinkai Investment.
Priced at the top end of the marketed range, at 102.5% of par value, the bonds were oversubscribed by nearly eight times and were fully purchased within just 10 minutes of the opening of the order book. The initial conversion price was set at HK$63.30 per share, representing a 40% premium over the price of a concurrent delta placement. The transaction underscores investors’ strong confidence in Zijin’s long-term growth prospects. In convertible-bond deals, delta placements allow investors to hedge their exposure by short-selling the underlying shares.
Net proceeds of approximately US$1.527 billion will be used to fund capital projects at the La Arena copper-gold operation in Peru, as well as for working capital and other general corporate purposes, bolstering Zijin’s global growth drive.
The deal comes as Zijin’s core commodities — gold and copper — continue to hit record highs. On January 29, Zijin’s H-shares reached an all-time high closing price of HK$46.14 per share. Capitalizing on this momentum, the company made the offering, drawing participation from over 200 top-tier institutional investors, including leading international and Chinese long-only and multi-strategy funds.
The transaction features a negative-yield structure — issued at 102.5% of par and redeemable at 100% — making Zijin the first mining company in the Asia-Pacific region to issue a negative-yield convertible bond. Furthermore, the 40% conversion premium marks the highest ever for the mining sector in the region, setting a new record for cost-efficient financing in the industry.
This successful issuance provides substantial capital for Zijin’s global operations and strategic expansion. It ranks as the largest convertible bond issue in the Asia-Pacific region since October 2025 and the world’s largest to date in 2026.
About Zijin Mining
Zijin Mining is a leading global metals and mining company and one of the world’s largest producers of gold, copper, and zinc. The company has more than 30 large-scale mining operations and projects across 19 countries on 5 continents. Leveraging strong in-house research, engineering, and development capabilities, Zijin maintains high operational efficiency and low costs in both acquisitions and operations. This enables the company to be an industry leader in value creation, underpinned by its philosophy of pursuing development for all and sustained by superior environmental, social, and governance performance. Zijin’s shares trade on the Hong Kong Stock Exchange (HKEX: 2899) and the Shanghai Stock Exchange (SSE: 601899).