Rio Tinto has successfully raised $9bn through a US investment-grade bond sale to fund its acquisition of Arcadium Lithium, reported Bloomberg, citing sources.
The debt was divided into eight segments, with 40-year bonds offering a yield that is 1.33 percentage points higher than that of Treasuries.
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The bond offering was met with strong demand, with investors placing peak orders exceeding $50bn.
Rio Tinto was among 11 other issuers selling US investment-grade debt on Tuesday.
The note sale was led by Bank of America, BNP Paribas, Citigroup, JPMorgan Chase, Mizuho Financial Group and Royal Bank of Canada.
This move follows the completion of the $6.7bn acquisition of Arcadium Lithium by Rio Tinto earlier this month.
The acquisition, sanctioned by the Royal Court of Jersey, marks Rio Tinto as the ultimate parent company of Arcadium Lithium, now renamed Rio Tinto Lithium.
Arcadium Lithium, employing around 2,400 people across nine countries, generates 84% of its revenue from Asia, a significant hub for lithium demand.
Rio Tinto considered raising up to $5bn in equity for acquisitions but abandoned the plan.
Recently, Rincon Mining, a subsidiary of Rio Tinto, named Worley as the lead integration delivery partner (LIDP) for the Rincon full potential lithium project in Salar Del Rincón, Salta Province, Argentina.
The lithium project, which involves a total investment of $2.5bn, seeks to establish a scalable lithium carbonate plant capable of producing 60,000 tonnes per annum (tpa) of battery-grade material from raw brine.
As the LIDP, Worley will be responsible for overseeing the detailed design and implementation of the project, coordinating efforts with subcontractors, technology providers and construction contractors.
