Menu

Search

  |   Business

Menu

  |   Business

Search

Rio Tinto Secures $9B Bond Deal to Fund Arcadium Lithium Acquisition

Rio Tinto Secures $9B Bond Deal to Fund Arcadium Lithium Acquisition. Source: Photo by Kindel Media

Rio Tinto Ltd (ASX:RIO) is raising $9 billion through U.S. investment-grade bonds to refinance its $6.7 billion acquisition of Arcadium Lithium PLC (NYSE:ALTM), Bloomberg reported. The debt offering, spanning eight tranches, includes a 40-year note expected to yield 1.33 percentage points above Treasuries, with initial discussions pointing to a premium of 1.625 percentage points.

The mining giant initially funded the Arcadium purchase with bridge financing and opted for long-term debt after scrapping plans for a $5 billion share sale last week. The bond issuance comes amid market volatility following Monday’s broad selloff, with Rio Tinto among 11 companies issuing investment-grade debt on Tuesday.

This move underscores Rio Tinto’s confidence in lithium demand, a key component in electric vehicle (EV) batteries, and its strategy to strengthen its position in the growing EV supply chain.

By securing long-term financing, Rio Tinto is reducing reliance on short-term debt while capitalizing on investor appetite for high-quality corporate bonds. The bond sale is expected to provide stability as the company integrates Arcadium Lithium into its portfolio.

Rio Tinto’s expansion into lithium aligns with increasing global demand for critical minerals, positioning the company as a major player in the EV-driven commodities market. The success of this bond issuance will likely influence future financing strategies amid fluctuating market conditions.

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.