JL Mag Rare-Earth (06680) plans to issue $117.5 million in guaranteed convertible bonds at 1.75% due in 2030.

Jl Mag Rare-Earth (06680) announced that on July 23, 2025 (after trading hours), the issuer (Jl Mag Rare-Earth Green Technology (Hong Kong) Limited, a wholly-owned subsidiary of the company), the company, and the underwriter signed a subscription agreement. The issuer intends to issue $117.5 million in guaranteed convertible bonds due in 2030. The company, according to the terms of the guarantee agreement, unconditionally and irrevocably guarantees the issuer's payment of all amounts due under the bonds and trust deeds upon maturity. The bonds can be converted into H shares at an initial conversion price of HKD 21.38 per share (subject to adjustment) under the terms and conditions specified, which represents a premium of approximately 10.0% over the last closing price of H shares on the Hong Kong Stock Exchange on July 23, 2025, which was HKD 19.44 per share. Assuming full conversion of the bonds at the initial conversion price of HKD 21.38 per share, the bonds will be converted into approximately 43,141,406 H shares, equivalent to approximately 18.95% of the total issued H share capital of the company as of the date of this announcement, and 3.14% of the total issued share capital of the company. After the full conversion of the bonds, the total issued H share capital of the company will increase to approximately 15.93% and the total issued share capital of the company will increase to approximately 3.05%. Upon completion of the bond issuance, a net proceeds of approximately $115 million will be raised, which will be used for debt repayment, share buyback, general working capital, and payment of the issuer's operating expenses.