10 minutes to sell out! Zijin Mining’s $1.5 billion convertible bonds oversubscribed by 8 times

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Amid the recent surge in gold prices and geopolitical tensions, Chinese mining giant Zijin Mining Group Co., Ltd. successfully seized the capital market window. The company’s $1.5 billion convertible bond offering was snapped up by investors just 10 minutes after subscriptions opened, demonstrating the strong global demand for high-quality mining assets.

According to sources cited by Bloomberg, the offering was nearly eight times oversubscribed, attracting participation from more than 200 investment institutions, with demand far exceeding expectations. Subscriptions drew from a wide range of funding sources, covering long-only funds and hedge funds both internationally and in China. This robust market response highlighted Zijin Mining’s leading position in the industry, and reflected ongoing investor optimism towards the metals and mining sector.

The issued convertible bonds are zero-coupon bonds maturing in 2031, with an initial conversion price set at HKD 63.30 per share, representing a premium of about 37% over the previous trading day’s closing price of HKD 46.14. The raised funds will mainly be used for construction expenditures at the La Arena gold mine project in Peru, to supplement working capital and for other general corporate purposes.

Recently, Chinese mining companies are experiencing a financing boom. Zijin Mining’s move is not only a key step in its global expansion strategy, but also, following China Molybdenum and Jiangxi Copper, marks another heavyweight financing in the mining sector, further consolidating the industry’s presence in the capital markets.

Robust Subscription Demand and Pricing Strategy

Citing sources, Bloomberg reported that the subscription for this transaction was extremely fast, reaching full coverage just 10 minutes after opening. Ultimately, the deal was nearly eight times oversubscribed, an uncommon feat for large-scale recent financings. As noted by sources to Bloomberg, the buyers included both long-term funds who typically do not short sell, as well as hedge funds seeking arbitrage opportunities.

The company eventually locked in the initial conversion price at HKD 63.30, about 37% higher than Thursday’s closing price.

According to the Friday stock exchange announcement, the convertible bonds carry a zero coupon rate and will mature in 2031. Meanwhile, bondholders have the right to require Zijin Mining to redeem the bonds on February 5, 2029. For the company, the convertible bonds involve a 90-day lock-up period.

Use of Funds and Global Expansion Plans

The strategic allocation of the raised $1.5 billion is clear. The core part will be used to fund construction capital expenditures at its La Arena gold mine project in Peru, with the remainder going to supplement working capital and cover other general corporate purposes.

This week, its subsidiary, Zijin Gold, agreed to acquire Canada’s Triple Flag Precious Metals for 5.5 billion Canadian dollars (approximately $4 billion). Triple Flag has several mining projects in Africa. Notably, Zijin Gold completed its initial public offering (IPO) in Hong Kong last year, raising $3.7 billion.

Wave of Financing Among Chinese Mining Companies

Zijin Mining is not the only Chinese mining company recently active in the capital markets. As precious metals markets heat up, several industry giants are launching financing plans. Last week, copper producer China Molybdenum just raised $1.2 billion through a convertible bond sale. In addition, Jiangxi Copper plans to raise up to $3.6 billion through a bond issuance.

Bloomberg data shows that the transactions by Zijin Mining, China Molybdenum, and Jiangxi Copper account for about 40% of the total bond financing ($15.6 billion) by Chinese metals and mining companies so far in 2025. Previously, the industry’s total bond financing in 2024 set the highest annual record since 2022.

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