7th Dec 2015 11:06
LONDON (Alliance News) - Glencore PLC plans to complete its major debt reduction programme earlier than originally expected and could exceed its target by as much as USD2.00 billion, the Financial Times reported Monday.
The FTSE 100-listed natural resources group has been battling falling commodity prices and is expected to announce the acceleration of its USD10.20 billion debt reduction programme on Thursday, said the FT, citing three people familiar with the company's plans.
Glencore launched its plan back in September to address its substantial debt pile which stood a touch under USD30.00 billion, comprising of asset sales, share offerings, capital reductions and a severe cut to its dividends.
The plan was an attempt to bring its net debt down to around USD25.00 billion before the end of 2015 and to the "low USD20.00 billions" by the end of the programme.
Since those plans were launched, copper prices have fallen by 11%, piling more pressure on Chief Executive Ivan Glasberg to speed up debt reduction plans.
That final net debt target is now expected to be achieved before the end of 2016, with "many analysts" expecting Glencore to exceed its target by as much as USD2.00 billion, the FT reported.
However, it is unclear whether the target to have net debt at USD25.00 billion before the end of 2015 will also accelerate.
http://www.ft.com/cms/s/0/3cbf9906-9c18-11e5-b45d-4812f209f861.html#axzz3td9FBdD0
By Joshua Warner; [email protected]; @JoshAlliance
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