Rio secures $40 billion loan financing for Alcan purchase

Rio secures $40 billion loan financing for Alcan purchase

Metal Bulletin, Singapore

30th August 2007

Rio Tinto has completed the syndication of the $40 billion loan and credit facilities it will use to finance its acquisition of Alcan.

The loan is the largest ever raised by a UK corporation and the fourth largest worldwide, it said.

The sub-underwriting phase of the syndication was more than one-third oversubscribed despite the recent volatility in the global credit markets. The facilities were initially underwritten by the Royal Bank of Scotland, Deutsche Bank, Credit Suisse and Societe Generale.

"This extremely attractive response underlines the strength of Rio Tinto's existing asset base, the attractiveness of the Alcan transaction and the solid credit profile of the enlarged Rio Tinto Group," cfo Guy Elliott said in a statement. "This bodes well for our future refinancing plans in the debt capital market." Rio is buying Alcan for about $38.1 billion, or an enterprise value of about $44 billion.

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