Ashurst advises Deutsche Bank on secured exchangeable bond issuance by Valin Mining Investments

International law firm Ashurst has advised Deutsche Bank AG, Singapore Branch as the sole lead manager and bookrunner on the issuance of an exchangeable bond with a principal amount of US$354.8 million by Valin Mining Investments (Singapore) Pte. Ltd (the "Issuer"). 

The zero coupon exchangeable bond matures in November 2021, subject to an investor put/issuer call in November 2019, and is exchangeable into 64,968,641 shares in Fortescue Metals Group Ltd. ("FMG"), which is listed on the ASX. The bonds have the benefit of security over the exchange property and a Keepwell Deed provided by Hunan Valin Iron and Steel Group Co., Ltd, the largest state-owned enterprise in Hunan and one of the top ten steel manufacturers in China in terms of production volume in the first half of 2016.

 

The five year deal, puttable after three years, marks one of the rare Chinese-Australian cross-border equity-linked bonds with the benefit of a security share package in Australia. The bonds are also listed on the Singapore Exchange Securities Trading Limited. 

 

This transaction was led by partners Nigel Pridmore and Jini Lee in Hong Kong, who were assisted by associates Wendi Xu, Lynn Liu and Zoe Lam. In Australia, Jamie Ng (Partner) was assisted by Caroline Smart (Foreign Qualified Senior Associate) in advising the sole lead manager and bookrunner on Australian law aspects, while Jennifer Schlosser (Partner) and Eugene Ng (Senior Associate) advised P.T. Limited, the Security Trustee and The Trust Company Limited, the Custodian. In London, Malcolm Charles (Counsel) and Ciaran Vinaccia (Associate) advised the Security Trustee on English law aspects. 

 

The transaction closed on 15 November 2016.