CIC buys bonds from Russian fertilizer producer

China Investment Corporation, the country’s sovereign wealth fund, has bought bonds from Russia’s largest fertilizer maker OAO Uralkali which can be exchanged for shares valued at about $2.75 billion.

The transaction was carried out by Wadge Holdings Ltd, a wholly-owned subsidiary of CIC International, the company said in a statement on its website. The bonds can be converted into no more than a 12.5 percent stake of Uralkali’s ordinary shares.

Chengdong Investment Corp, a unit of CIC International, and Moscow-based VTB Capital bought convertible bonds maturing in 2014 and exchangeable for a 14.5 percent stake in Uralkali, Bloomberg reported, citing a statement from Uralkali.

Uralkali had a market value of about $22 billion as of Thursday’s close. Shares in the company rose by as much as 1.7 percent and traded up 1.3 percent by 12:10 pm in Moscow, after falling as much as 0.9 percent at the opening.