Analysts at UBS view the bond issue by Mineral Resources (ASX:MIN) as an approach to de-risk capital expenditure during a period of intense construction activity.

The Australian lithium miner declared on Tuesday, plans to offer up to $850 million of senior unsecured notes, without divulging further details.

UBS indicates that an increased balance sheet involvement for the company will naturally increase its exposure to weaker commodity prices.

The brokerage maintains a ‘sell’ rating on the company, with a price target.

Mineral Resources' shares saw a rise of 2.1% at A$67.63.

Out of 16 analysts, 10 rate the stock ‘buy’ or higher, three give a ‘hold’ and the remaining three rate ‘sell’ or lower.

The median price target is A$77.90, according to LSEG data.

This year, the stock has seen a decrease of 14.5%, as of the most recent closing.

Mineral Resources is an Australian lithium mining company.