Singaporean sovereign wealth fund GIC is selling $350 million of bonds convertible into shares in Glencore Xstrata, bookrunner Bank of America Merrill Lynch said on Wednesday.
The bonds, which pay an annual interest rate of 5 percent and due to mature Dec. 31, 2014, are being sold via an accelerated offering expected to be completed on Nov. 7.
The bonds are being offered at between 117 percent and 118.124 percent of their par value, according to a person familiar with the matter, meaning GIC could raise between $409.5 million and $413.4 million from the sale.
GIC was a key investor in 2009, when, in a step paving the way for its listing, Glencore issued to a small group of investors a $2.3 billion bond that would become convertible into stock when it went public. The trader listed in 2011.
Earlier this year GIC swapped $250 million of its holding in the bonds into shares in the company, days ahead of the completion of the commodity trader's takeover of miner Xstrata.
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