News Column

China Gold International Resources Successfully Completed the Issuance of US$500 Million Corporate Bond

July 29, 2014

By a News Reporter-Staff News Editor at China Weekly News -- China Gold International Resources Corp. Ltd. (TSX: CGG; HKEx: 2099) (the "Company", the "Guarantor" or "China Gold International Resources") is pleased to announce that on July 17, 2014, the Company, through its wholly-owned subsidiary, Skyland Mining (BVI) Limited (the "Issuer"), and with the assistance of Joint Lead Managers as defined in the previous news release dated July 10, 2014, has successfully completed the issuance of bonds (the "Offer", or the "Bonds") in an aggregate principal amount of US$500 million.

Referring to the previous news release dated July 10, 2014, the Company informs that all the conditions precedent to the issue of the Bonds as set out in the Subscription Agreement have been satisfied. The Bonds are expected to be listed on The Stock Exchange of Hong Kong Limited on July 18, 2014.

The Bonds were issued at a price of 99.634%, bearing a coupon of 3.50% per annum with a maturity date of July 17, 2017 and were rated BBB- by Standard & Poor's. The Bonds are unconditionally and irrevocably guaranteed by the Company. The net proceeds of the Offer will be used for working capital, capital expenditures and general corporate purposes of the Company.

Mr. Bing Liu, CEO of the Company, noted that the transaction was noteworthy on several accounts. Mr. Liu said "This issue was the first US dollar denominated bond issue supported by a company's credit rating outside of China in the history of the gold companies in Asia Pacific Region. The financing costs were significantly lower than the industry standard. The Offer was nearly 15 times oversubscribed. The Offer generated the highest percentage of subscription by European investors compared to other recent Chinese corporate bond issues. We set a benchmark in the international capital markets for others to follow."

The Bonds have not been sold, issued, delivered or offered directly or indirectly in Canada or to, or for the benefit of, any resident of Canada, or for others to resale, directly or indirectly, in Canada or to, or for the benefit of, any resident of Canada, except as otherwise permitted under applicable Canadian laws and regulations. An application was made to The Stock Exchange of Hong Kong Limited for the listing of, and permission to deal in the Bonds by way of debt issues to qualified professional investors only and such permission is expected to become effective on July 18, 2014. The Bonds and the guarantee have not been and will not be registered under the Securities Act and may not be offered or sold within the United States except in certain transactions exempt from, or not subject to, the registration requirements of the Securities Act. Furthermore, none of the Bonds were or will be offered to the public in Hong Kong other than to "professional investors" as defined in the Securities and Futures Ordinance (Cap. 571) of Hong Kong.

Keywords for this news article include: Asia, China, China Gold International Resources Corp. Ltd., Hong Kong.

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Source: China Weekly News

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