2007 Financial statements

Note 22 - Borrowings

	Note	Non current 2007 US$m	Current 2007 US$m	Non current 2006 US$m	Current 2006 US$m
Borrowings at 31 December
Syndicated bank loans (a)		33,263	4,466	-	-
Other bank loans		97	1,749	157	156
Commercial paper		-	644	-	-
Other loans
Finance leases	23	104	19	96	25
Rio Tinto Finance (USA) Limited Bonds 2.625% 2008 (d) swapped		-	596	586	-
Rio Tinto Finance (USA) Limited Bonds 7.125% 2013		100	-	100	-
Colowyo Coal Company L.P. Bonds 9.56% 2011		32	8	40	7
Colowyo Coal Company L.P. Bonds 10.19% 2016		100	-	100	-
Alcan, Inc. Debentures 6.25% due 2008		-	203	-	-
Alcan, Inc. Debentures 6.45% due 2011		415	-	-	-
Alcan, Inc. Global Notes 4.875% due 2012 (d) swapped		489	-	-	-
Alcan, Inc. Global Notes 4.50% due 2013		476	-	-	-
Alcan, Inc. Global Notes 5.20% due 2014		492	-	-	-
Alcan, Inc. Global Notes 5.00% due 2015 (d) swapped		479	-	-	-
Alcan, Inc. Debentures 7.25% due 2028		110	-	-	-
Alcan, Inc. Debentures 7.25% due 2031		441	-	-	-
Alcan, Inc. Global Notes 6.125% due 2033		736	-	-	-
Alcan, Inc. Global Notes 5.75% due 2035		280	-	-	-
European Medium Term Notes (c)		384	76	430	1,195
Other secured loans		346	27	241	7
Other unsecured loans		270	321	257	100
Total borrowings		38,614	8,109	2,007	1,490

Notes

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In support of its acquisition of Alcan Inc., the Group arranged for US$40 billion in term loans and revolving credit facilities, which were fully underwritten and subsequently syndicated (the 'Syndicated bank loans'). The Syndicated bank loans are divided into four facilities, as follows:

	Facility A	Facility B	Facility C	Facility D
Facility amount (US$ billions)	15	10	5	10
Type	Term Loan	Revolving Credit Facility	Revolving Credit Facility	Term Loan
Due	October 2008(b)	October 2010	October 2012	October 2012
Repayment	Bullet	Bullet	Bullet	Bullet

As at 31 December 2007, facilities A, B and D have been fully drawn, and US$2.14 billion remains undrawn on facility C. The amounts outstanding under these facilities are shown net of the unamortised costs of obtaining the facilities. Facilities A and B are subject to mandatory prepayment to the extent of the net proceeds from disposals of assets and from the raising of funds through capital markets, under specific thresholds and conditions.

The Group has the option to extend final maturity on the outstanding balance of Facility A for an additional year.
Rio Tinto has a US$10 billion (2006: US$3 billion) European Medium Term Note (EMTN) programme for the issuance of debt, of which approximately US$0.4 billion was drawn down at 31 December 2007 (2006: US$1.6 billion). The Group's EMTNs are swapped to US dollars. The fair value of currency swaps at 31 December 2007 was a liability of US$7 million. Details of the major currency swaps are shown in note 34 (d). In 2007, other EMTNs of US$31 million relate to Alcan Inc.
US$1.2 billion of these fixed rate borrowings shown is swapped to floating rates. The fair value of the interest rate swap at 31 December 2007 was US$31 million.
The Group's borrowings of US$46.7 billion (2006: US$3.5 billion) include some US$4.7 billion (2006: US$0.7 billion) which relates to borrowings of subsidiaries that are without recourse to the Group, some of which are subject to various financial and general covenants with which the respective borrowers are in compliance as of 31 December 2007.