Rio Tinto will pay $430m in fees for its $15.2bn rights issue, pushing the costs associated with the miner’s recent fundraising attempts to more than $625m. Rio launches its fully underwritten 21-for-40 rights issue on Wednesday, two weeks after dropping its campaign to raise $19.5bn from Chinalco, the Chinese metals group, and incurring a $195m break fee. On top of these fees, Rio faces nearly $800m of costs for pursuing the Chinalco deal from February until May, and must also repay $18bn in debt relating to its 2007 purchase of Canada’s Alcan by 2010.

This entry was posted by Gwen Robinson on Wednesday, June 17th, 2009 at 5:31 and is filed under Capital markets, Commodities. Tagged with rio tinto. Edit this entry.