Rio Tinto to cut debt by up to $US3bn
The miner is taking advantage of its liquidity position to reduce gross debt by launching a bond purchase plan.
Miner Rio Tinto Monday launched a new debt reduction program for up to $US3 billion as part of the company’s ongoing capital management.
Under the plan, Rio Tinto has issued a redemption notice for $US1.5 billion of its 2017 and 2018 US dollar-denominated notes and commenced cash tender offers to purchase up to $US1.5 billion of its 2019, 2020, 2021 and 2022 US dollar-denominated notes.
The Anglo-Australian mining company said it is again taking advantage of its strong liquidity position to further reduce gross debt, by launching the bond purchase plan.
Monday’s announcement is part of the Rio Tinto Group’s ongoing capital management and follows the successful completion of $US4.5 billion cash tender offers earlier this year, the company said.
In April, Rio Tinto launched a program to purchase $US1.5 billion of its 2017 and 2018 notes and in June it announced plans to purchase $US3 billion of its 2018, 2020, 2021 and 2022 notes. Both offers were successfully completed. In June, $US1.5 billion of notes also matured and were repaid with cash, it said.
Rio Tinto shares in London at 1445 GMT were down 29 pence, or 1.1 per cent, at 2,492 pence, valuing the company at 34.25 billion pounds ($58.16 billion).
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