Herbert Smith Freehills Kramer advises MMG Limited on US$1.6 billion concurrent share placement and convertible bond issue

Leading global law firm Herbert Smith Freehills Kramer has advised MMG Limited (01208.HK) on its US$1.6 billion concurrent share placement and concurrent convertible bond issuance.

The share placement comprised approximately 706 million new shares, representing 5.8% of MMG’s existing issued share capital, with gross proceeds of HK$6.268 billion (approximately US$800 million).

Concurrently, the company issued zero coupon convertible bonds at an issue price of 102% of their principal amount, raising gross proceeds of approximately US$816 million. The initial conversion price represents a premium of approximately 17.5% over the five-day average closing price prior to launch of the transaction on 15 June 2026.

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 a team advising the client, supported by Aaron Li, Nicholas Loo, Gigi Lo and Eric Zhou. Partner Jin Kong* advised on the US law aspects of the transaction.

“We are delighted to support MMG on another significant fundraising that strengthens its financial flexibility and supports the continued growth of its business,” said Matt Emsley. “The transaction captures the momentum in Hong Kong’s capital markets.”

“The convertible bond component shows how Hong Kong-listed issuers can use equity-linked financing to reduce cash interest expense and manage their balance sheet,” said William Ku. “It plays directly to the strengths of our integrated Corporate and Debt Capital Markets team in delivering complex, multi-product financings.”

Herbert Smith Freehills Kramer previously advised MMG on its US$500 million zero coupon convertible bond issue. The firm has also 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 combined placement and convertible bond offerings in Hong Kong, such as S.F. Holding’s HK$5.8 billion H-share placement and convertible bond issue, on which the firm also advised.