Aluminum Corp. of China raises US$21 bln to fund Rio Tinto acquisition

Aluminum Corporation of China (ACH: News ) or Chinalco announced that it secured the required financing for its strategic partnership with the Rio Tinto (RTP: News ,RIO.L: News ). Chinalco has raised an amount of US$21 billion through a bank loan for the purpose of satisfying its obligations with respect to completion of the transaction documents. This consists of US$19.5 billion to finance its acquisition of the convertible bonds and its interests in the strategic assets and an additional US$1.5 billion standby facility available to finance ongoing working capital and other expenditures related with Chinalco's investment in Rio Tinto. The financing has been arranged by a syndicate of banks led by China Development Bank and also including the Export-Import Bank of China, Agricultural Bank of China andBank of China. Chinalco was required under the terms of the co-operation and implementation agreement entered into with Rio Tinto to secure committed funding to finance its acquisition of the convertible bonds and its interests in the strategic assets by 31 March 2009.