CMOC raises $1.2 billion in convertibles deal

Chinese miner CMOC Group Ltd. raised $1.2 billion from an upsized sale of zero-coupon convertible bonds, after a rally in the price of copper lifted its profit.

CMOC plans to use the proceeds to expand its overseas mining and processing assets, and to improve its working capital, it said in a Tuesday filing. The company priced the deal at HK$28.03 a share, reflecting a conversion premium of 32% over the price of a concurrent delta placement to facilitate hedging by investors, according to terms of the deal seen by Bloomberg News.

CMOC initially sought to raise $1 billion, with a conversion-premium range of 28% to 32%. The notes, which are due in 2027, mark the largest convertible-bond deal by a Chinese miner since Zijin Mining Group Co.’s $2 billion issuance in 2024, according to data compiled by Bloomberg.

The deal received demand for nearly 10 times the bonds available, chairman Liu Jianfeng said in a statement to Bloomberg News. “This issuance will enhance the flexibility of operating capital, lower financing costs and provide strong support for advancing the company’s overall strategy,” Liu said.

Copper prices have hit successive records since late last year on expectations that supply will struggle to keep pace with demand for the energy-transition metal. The rally has also been fueled by a broader frenzy across metals markets, driven by trade dislocations and heightened geopolitical uncertainty.

CMOC plans copper output growth that may reach double digits in 2026 after the price surge boosted profits, the company said in a statement last week, citing preliminary results. Higher prices of the metal helped increase the company’s net income by about half to as much as 20.8 billion yuan ($3 billion) last year.

CMOC’s share price has nearly quadrupled over the past year. The stock fell as much as 5.6% on Tuesday and notched its worst two-day performance since April.

Bank of America Corp. is sole global coordinator on CMOC’s convertibles sale, while Citic Securities Co. is a joint bookrunner.

(By Julia Fioretti, Dave Sebastian and Annie Lee)