Bloomberg

(Bloomberg) -- Glencore Plc sold bonds for the first time since commodity-market turmoil forced it to trim debt and sell assets.

The miner and trader run by billionaire Chief Executive Officer Ivan Glasenberg sold 250 million Swiss francs ($257 million) of securities due in May 2021, according to data compiled by Bloomberg. Its last debt sale, in yen, was about a year ago.

“That’s definitely a positive as the company demonstrates it has access to longer-term funding,” said Max Mihm, a Frankfurt-based portfolio manager at Union Investment, which holds Glencore bonds among its 261 billion euros ($295 billion) of assets as of December. Still, the debt is “expensive relative to past years,” Mihm said.  

Glencore’s return to the bond market underscores improving sentiment in metals and mining, which has helped boost shares in the Bloomberg World Mining Index by 49 percent since touching a 12-year low in January. The company has bolstered its balance sheet by selling and closing mines around the world and won a vote of confidence from lenders when it refinanced an $8.45 billion revolving-credit facility in February.

An official at Glencore confirmed the bond sale by e-mail. The company’s shares fell 1.9 percent to 152 pence in London on Tuesday.

The notes sold Tuesday priced to yield 279.5 basis points above benchmark rates, according to Bloomberg data. Glencore last sold Swiss franc-denominated bonds in November 2014, with a sale of 2020 notes that yielded 95 basis points above benchmark rates, the data show.

--With assistance from Levent Kucukreisoglu To contact the reporters on this story: Sally Bakewell in London at sbakewell1@bloomberg.net, Agnieszka de Sousa in London at atroszkiewic@bloomberg.net. To contact the editors responsible for this story: Shelley Smith at ssmith118@bloomberg.net, Mark McCord, Neil Denslow

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