Chinalco wins US$21 bln in loans to fund its Rio Tinto deal

Mar. 31, 2009 (China Knowledge) - Aluminum Corp of China (Chinalco), parent of China's largest aluminum producer Chalco<601600><2600>, said Friday that it has signed agreements with four Chinese banks which will provide a combined credit line of US$21 to fund its bid for Rio Tinto, the world third largest miner. The agreements will not be executed until the deal, the biggest overseas investment for Chinese firms, wins approval from the Australian government, said the aluminum giant. The four Chinese banks are China Development Bank, Export-Import Bank of China, Bank of China (BOC)<601988><3988> and Agricultural Bank of China. On Feb. 12, Chinalco announced that it will inject a total of US$19.5 billion into Rio Tinto to increase its holding in the latter to 18% from the current 9%. The loan agreements will help Chinalco's deal to proceed as scheduled, said the company's general manager, Xiong Weiping.