Mining group Anglo American launched a $1.5bn, five-year convertible bond on Thursday to help strengthen its balance sheet and lengthen its debt profile.
Anglo, the world's fourth-biggest diversified mining group by market value, said the bonds were expected to have a semi-annual coupon of 4.25-4.75% a year.
The initial conversion price was expected to be set at a premium of 30-35% over the current share price, a statement said.
The total amount of the bonds could be increased to $1.7bn under an overallotment option to joint bookrunners Goldman Sachs International and Morgan Stanley & Co International.
Final terms of the bond were due to be announced later on Thursday. The proceeds would be used for general corporate purposes, Anglo said.
On Wednesday, Anglo chairman Mark Moody-Stuart told the group's annual general meeting that its $11bn of borrowing was sustainable.
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