Small relief for banks as BHP drops Rio bid

28 Nov 2008

Anglo-Australian miner BHP Billiton’s arranger bankers were relieved this week when the borrower decided against a takeover of rival Rio Tinto, thereby terminating its $55bn syndicated loan, the world’s biggest-ever facility.

Speculation that the wider market would benefit was quashed by most bankers, however. "It gives a little bit of relief as it reduces the pipeline," said one. "But it would be wrong to think that just because the arrangers now have $4bn or $5bn of unfunded capacity freed ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial