Image by Zerbor | Shutterstock.com.
China’s sovereign-wealth fund (CIC) grabbed a 12.5% stake in Russian potash producer Uralkali, the world’s biggest producer of the commodity, as it exercised Tuesday an option on a convertible bond it bought last year.
The news come on the heels of a $530 million loan deal the embattled potash miner signed Monday with eight international banks, including Industrial Commercial Bank of China (ICBC) and China Construction Bank.
ING Bank, Societe Generale, Nordea Bank, Commerzbank, IKB and Natixis also took part in yesterday’s deal as lenders.
CIC’s move, reports Dow Jones, represents a bold attempt by China to secure continued supply of the soil nutrient. At the current share price, CIC’s stake is worth about $2.03 billion (64.5 billion rubles).
Since last year the fund has been shifting its focus to invest in agriculture and global food supplies, which reflects the priorities of the country’s current leadership.
When established in 2007, CIC focused on taking stakes in US financial institutions such as Blackstone, the private equity fund, and Morgan Stanley. But facing losses on those investments in the wake of the financial crisis, CIC adjusted its strategy to concentrate on energy, metals, mining and other commodities needed to fuel China’s growth.
The post China grabs stake in Russian potash miner Uralkali appeared first on MINING.com.
Lähde: China grabs stake in Russian potash miner Uralkali
