atans1

GIC has a winner with Glencore

In GIC on 15/04/2011 at 7:03 am

In Dec 2009, GIC and a few other investors (including BlackRock, Fidelity and a Rothschild) invested US$2.3bn in the convertible bonds of a then private Glencore. The convertibles put a value of US$35bn on Glencore, a trading co with a 34.5% in mining co ,Xstrata

Analysts now put the value of soon to be listed Glencore at between US$55-70bn.

If Glencore lists at the expected US$60bn, then the US42.3bn issue of convertible bonds will be worth US$4.3bn in Glencore shares.

Nice work GIC.

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  1. Re: Glencore

    I think GIC’s share of the convertible was rather low; probably less than US$500 million. Profit from Glencore convertible probably not enough to cover its paper loss in its Pound Sterling 1.03 billion stake in British Airport Authority through its partnership with Spain’s Ferrovial.

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