News: AJM Ningbo Shanshan's Unit Signs Agreement To Invest In Australian Mining Firm, page-154

Why can’t AJM consider a bond issue?

Just wondering. If they issued bonds with the coupon rate even at 10-12% in the current low interest climate, secured against mineral rights and plant/property, surely it would be an attractive investment proposition.
The current loan notes are secured against plant and equipment...

Raise enough to convert the $174 m AUD loan into a public or sophisticated investor bond issue. AJM saves 4-5% interest cost per year, and obtains creditors that are far less likely to be hostile.

Obviously I m missing something.... but surely it would be a sensible way to deal with the debt issue without having to crawl to a bank which Canaccord doesn’t think AJM will be able to do.

I would quite happily buy secured bonds in AJM with a 10-12% coupon rate with a 2-3 year maturity... but I m biased....