Baosteel seeks smaller Aquila bridge loan

Baosteel downwardly revises size of bridge loan as it moves closer to buying Aquila, with a nod from Australia's Foreign Investment and Review Board on Thursday.

Chinese state-owned Baosteel has revised its request for proposals for a one-year bridge loan to fund its acquisition of Australia-listed Aquila Resources.

According to one source familiar with the matter, the steel maker initially asked banks to submit proposals for a A$600 million-equivalent US dollar-denominated loan but later cut that to A$300 million-equivalent as it was unsure whether banks would be willing to extend the bigger amount.

The revised proposals are due at the end of this week.

Baosteel, together with Australia’s bulk rail freight operator Aurizon, have jointly bid for all the shares of iron ore and coal-focused Aquila Resources, valuing the...

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