Bloomberg Businessweek
ANZ Said to Market Chalco Loan After Bridging Funding Gap
Edited by : AL CIRCLE
2 min read
Australia & New Zealand Banking Group Ltd. plans to sell another $90 million of a $300 million loan for Aluminum Corp of China Ltd. to banks after funding the majority of the facility, a person familiar with the matter said.
About three banks are expected to buy the debt from ANZ in January, said the person, who declined to be identified because the details are private. Aluminum Corp. of China, the nation’s biggest producer of the metal, is more commonly known as Chalco.
The $300 million loan was signed on Nov. 4 and fully funded that month, with ANZ lending $200 million via a $50 million three-year facility and a $150 million so-called bridge loan. Natixis SA had originally agreed to jointly and equally underwrite the $300 million loan with ANZ. The French bank eventually committed $50 million while Bank of America Corp. joined with $50 million, two people with direct knowledge of the deal said on Dec. 15.
The loan includes a structure whereby more banks can join after it has been signed. The three banks expected to join in January are doing so under this so-called accordion structure, the person said today.
Other banks which have already joined under that arrangement include Commonwealth Bank of Australia, which lent $50 million, and China Merchants Bank Co., which gave a commitment letter pledging $10 million, the other person familiar with the matter said earlier this month.
About three banks are expected to buy the debt from ANZ in January, said the person, who declined to be identified because the details are private. Aluminum Corp. of China, the nation’s biggest producer of the metal, is more commonly known as Chalco.
The $300 million loan was signed on Nov. 4 and fully funded that month, with ANZ lending $200 million via a $50 million three-year facility and a $150 million so-called bridge loan. Natixis SA had originally agreed to jointly and equally underwrite the $300 million loan with ANZ. The French bank eventually committed $50 million while Bank of America Corp. joined with $50 million, two people with direct knowledge of the deal said on Dec. 15.
The loan includes a structure whereby more banks can join after it has been signed. The three banks expected to join in January are doing so under this so-called accordion structure, the person said today.
Other banks which have already joined under that arrangement include Commonwealth Bank of Australia, which lent $50 million, and China Merchants Bank Co., which gave a commitment letter pledging $10 million, the other person familiar with the matter said earlier this month.
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