China Hongqiao Looks to Raise $1.5 Billion via Bond Issue
By Fabiana Negrin Ochoa
China Hongqiao, one of the world's top aluminum producers, is tapping the bond market to raise about $1.5 billion to stockpile raw materials and invest overseas, among other purposes.
The company is offering 10.20 billion yuan in zero-coupon convertible bonds, equivalent to about $1.49 billion, it said in a filing on Tuesday.
The notes have an initial conversion price of HK$43.90, a premium of about 25% to the stock's last closing price.
Hongqiao plans to use the proceeds to procure bauxite--used in aluminum production--refinance debt, fund overseas projects, and for future share repurchases.
The company also announced plans for a concurrent equity offering and share buyback, aiming to buy around 11,276,000 shares at HK$33.99 each.
The buyback will be funded by cash on hand.
UBS and CMBI are among the banks advising on the bond issuance.
Write to Fabiana Negrin Ochoa at fabiana.negrinochoa@wsj.com
(END) Dow Jones Newswires
April 27, 2026 20:50 ET (00:50 GMT)
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