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Glencore has moved to tap the Australian debt markets for the first time as speculation mounts the Swiss trading and mining giant will emerge as the buyer of BHP Billiton's unwanted Nickel West division.
It is understood Glencore Australia Holdings has been discussing a local bond issue with potential investors for several months. It launched a five-year unsecured note issue yesterday, managed by National Australia Bank, ANZ and UBS.
Glencore is understood to be seeking to issue about $500 million of notes, with pricing likely to be completed this week.
A Glencore spokesman would not comment yesterday on whether the local debt issue was related to a bid for Nickel West.
The company is understood to have submitted a formal offer for BHP's unwanted WA business.
While the Glencore offer is believed to value the BHP operation at between only $190 million and $230 million, Nickel West has also been starved of capital in recent years as nickel prices slumped.
Industry sources have suggested a buyer would need to factor renewed capital spending into the purchase price.
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- [Editor:sunzhichao]
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