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Tuesday, April 12, 2011

China banks to provide Minmetals $4.6 billion in financing

Minmetal Resources Ltd , a unit of China's biggest metals trading company, said on Tuesday that three Chinese banks will provide at least $4.6 billion in corporate debt financing for its bid to buy Equinox Minerals Ltd . A majority of the loan would have a tenure in excess of six years and would be partly secured by its assets, the company said in a statement posted to the Hong Kong stock exchange. A Chinese institution will also invest $600 million in Minmetals equity if the deal is successful, with the balance of funding required for the $6.5 billion deal to be satisfied by its cash reserves, the company added in the statement. The company did not give further details on the banks who will be extending the loans or the Chinese institution that will subscribe to its equity issue.