According to a report in the Australian Financial Review, ANZ has lent Gina Rinehart’s Hancock Prospecting $1 billion in the form of a commercial loan.
But, according to a source cited by the AFR, the loan carries a lot of risk.
“It’s a pretty gutsy play by ANZ because if the funding doesn’t emerge, their only collateral will be a partially built project.
“That’s risky, right. That’s not even project financing. There’s huge aggression to come in on that commercial tranche.”
The money is bridging finance for the long-stalled Roy Hill mine, which looks increasingly likely to start production soon.
Rinehart is reportedly looking for $3 billion in debt from commercial banks for Roy Hill.
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