Rio Tinto Launches New Debt Reduction Programme For Up To $3 Bln

(RTTNews) - Rio Tinto (RTPPF.PK, RIO.L, RIO, RTNTF.PK) said that it is again taking advantage of its strong liquidity position to further reduce gross debt, today launching a bond purchase plan for up to $3 billion.

Under the plan, Rio Tinto has issued a redemption notice for approximately $1.5 billion of its 2017 and 2018 US dollar-denominated notes and commenced cash tender offers to purchase up to approximately $1.5 billion of its 2019, 2020, 2021 and 2022 US dollar-denominated notes.

Today's announcement is part of the Rio Tinto Group's ongoing capital management and follows the successful completion of $4.5 billion cash tender offers earlier this year. In April, Rio Tinto launched a programme to purchase $1.5 billion of its 2017 and 2018 notes and in June it announced plans to purchase $3 billion of its 2018, 2020, 2021 and 2022 notes. Both offers were successfully completed. In June, $1.5 billion of notes also matured and were repaid with cash.

Rio Tinto issued a notice of redemption for all of its 2.000 per cent notes due 22 March 2017, 1.625 per cent notes due 21 August 2017 and 2.250 per cent notes due 14 December 2018 issued by Rio Tinto Finance (USA) plc and for all of its 6.500 per cent notes due 15 July 2018 issued by Rio Tinto Finance (USA) Limited. These notes are guaranteed by Rio Tinto plc and Rio Tinto Limited and approximately $1.5 billion in aggregate principal amount is outstanding. The redemption date is 26 October 2016