Aluminium Corporation of China Chinalco has agreed to invest a further $19.5 billion in Australian natural resources firm Rio Tinto in what will rank as China's largest outbound investment to date. The unlisted Chinese metals and mining firm will invest $12.3 billion in aluminium, copper and iron ore joint ventures and another $7.2 billion in two tranches of convertible bonds.
The bonds will increase Chinalco's shareholding in the Rio Tinto Group to 18% upon conversion. The bonds have a maturity of 60 years and are convertible at any time from 41 days after closing. The Australian bonds pay an annual coupon of 9% while the UK bonds pay 9.5%. $3.1 billion of the bonds...
¬ Haymarket Media Limited. All rights reserved.
