Glencore International sold of $2.2 billion convertible bonds to private, sovereign, institutional and corporate investors, a development which is being viewed as a precursor to an initial public offering. The First Reserve Corp. of U. S, Government of Singapore Investment Corporation, BlackRock and Zijin Mining Group are the major investors.

The deal intitally involved between $1.2 billion to $1.5 billion, which later on increased to $2.2 billion, and funds generated thus may be used by Glencore to buy back its lost Prodeco coal assets.

The terms of the bonds give Glencore $35 billion as pre-conversion equity value and these bonds can be converted into Glencore shares under certain predetermined qualifying conditions.

Glencore, funded by former fugitive financer Marc Rich, based in Baar, Switzerland, is completely owned by its management which includes Chief Executive Ivan Glansenberg. There are more than 2,000 employees in more than 40 countries and it is one of the largest suppliers of natural resources to large groups and corporation.

In addition to its 36% stake in Switzerland - based Xstrata, the company owns a 9.7 percent stake in United Co. Rusal, which is the world largest aluminum producer.

Glencore advisors are Citigroup Global Markets Limited and Morgan Stanley & Co. International PLC.