Rio Tinto To Use Surplus Cash To Reduce Debt By Up To USD2.25 Billion

20th Mar 2018 12:12

LONDON (Alliance News) - Rio Tinto PLC on Tuesday said it will begin a bond purchase and note redemption plan for up to USD2.25 billion as it further reduces its gross debt.

The blue-chip miner is to redeem all of its 4.125% notes due in May 2021 and 3.750% notes due in September 2021 issued by Rio Tinto Finance (USA) Ltd. Further, it is to redeem its 3.500% notes due March 2022 and 2.875% notes due August 2022 issued by Rio Tinto Finance (USA) PLC.

The outstanding amount left on the notes is approximately USD1.4 billion, and it will be redeemed on April 19.

Rio Tinto also said its subsidiary Rio Tinto Finance PLC is inviting the holders outside the US of its EUR750.0 million 2.000% instruments due in May 2020 and its EUR500.0 million 2.875% instruments due December 2024 to sell up to USD850.0 million of the notes.

The offer to sell the notes will expire on Tuesday next week at 1700 Paris time, unless this is extended.

Rio Tinto announced earlier on Tuesday the sale of its interest in the Hail Creek coal mine and the Valeria coal resource in Australia to Glencore PLC, which is to pay USD1.7 billion for the assets.

Rio Tinto shares were up 1.5% on Tuesday at midday at 3,664.90 pence each.

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