Herbert Smith Freehills Kramer advises MMG Limited on US$500 million convertible bond issue

Leading international law firm Herbert Smith Freehills Kramer has advised MMG Limited (01208.HK) on a US$500 million zero coupon convertible bond issue.

The bonds were issued on 8 October and listed on the Hong Kong Stock Exchange.

The transaction included a concurrent delta placement to hedge investors' market risk. Proceeds will be used to refinance MMG's offshore indebtedness.

MMG Limited is a subsidiary of state-owned mining conglomerate, China Minmetals Corporation (CMC), and holds interests in copper, zinc and other metals projects across Australia, Botswana, the Democratic Republic of Congo and Peru.

Hong Kong partners Matt Emsley and William Ku led the team advising the client, supported by Marcus Wong, Aaron Li, Sarah Shen and Nicholas Loo.

"We have supported MMG on a number of important matters over many years, from equity raises to this benchmark convertible bond,” said Matt Emsley. “The deal reflects our deep understanding of the mining industry’s capital needs and our commitment to delivering flexible and competitive funding solutions.”

"This transaction highlights the breadth of our debt and equity linked capital markets practice and our ability to execute complex cross-border financings for international issuers,” said William Ku. “Despite interest rate uncertainty, we helped MMG achieve a successful offering with exceptional investor demand and pricing.”

Herbert Smith Freehills Kramer has previously advised MMG on multiple capital market fundraisings, including rights issues for HK$9,079 million (US$1,164 million) and HK$3,968 million (US$512 million) respectively and a HK$2,344.75 million (US$302.16 million) placement.

This transaction also reflects a growing trend of convertible bond offerings in Hong Kong, such as S.F. Holding's HK$2.95 billion convertible bonds issuance, on which the firm also advised.