Investment capital in the bank

Chinalco announced that it has secured US$21 billion in loans from four Chinese banks in order to fund its proposed US$19.5 billion investment in Rio Tinto.

Chinalco has secured US$21 billion in loans from four Chinese banks in order to fund its proposed US$19.5 billion investment in Rio Tinto.

The Chinese state-owned Chinalco said the loans will come from Agricultural Bank of China, Bank of China, China Development Bank and Export-Import Bank of China.

The proposed deal’s approval came into question after China’s Minmetals’ takeover bid of OZ Minerals was blocked by Treasurer Wayne Swan.

Chinalco’s investment in Rio Tinto passed the first test when the Australian Competition and Consumer Commission (ACCC) said last week that it would not oppose the deal.

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