SMIC Announces $600 Million Bond Issue

Binwei Wang
    Feb 21, 2020 2:50 PM  PT
SMIC Announces $600 Million Bond Issue
author: Binwei Wang   

Semiconductor Manufacturing International Corporation (HKEX: 0981; OTC: SMICY) announces yesterday that the company has entered into an agreement with a group of lead managers to issue $600 million 2.693% bonds that is due 2025.

Joint lead managers of this deal includes J.P. Morgan, ICBC International, Barclays, UBS, SPDB International, ICBC MACAU, Silk Road International and BNP Paribas.

The semiconductor giant said it intends to use the net proceeds from the issue of the bonds, approximately $596.5 million, for capital expenditure for capacity expansion and other general corporate purposes.

Approval in-principle has been received for the listing of and quotation for the bonds on the SGX-ST. 

SMIC announced improved revenues and profit in its fourth-quarter financials early this month. In the three months through December its revenues reached $839.4 million, up 7% year-over-year. The company attributed the growth to its China business, which accounted for 65% of its revenues.