Rio Tinto to buy back $1.36bn in debt

Rio Tinto said on Thursday that it has priced an offer to buy back $1.36bn in debt, as it looks to cut debt amid the downturn in commodity prices.

The company launched the cash tender offers targeting $1.5bn of its 2017 and 2018 notes on 21 April, saying it was “using its strong liquidity position to reduce gross debt through the early repayment of some near term maturing debt”.

On Thursday, the miner said that it has accepted for purchase $1.36bn worth of debt.

Rio will buy $339m of its 2% notes due in 2017 at a price of $1,006.91 per $1,000 of loan notes. It will buy $1.02bn of the 1.625% notes due in 2017 at $1,005.85 per $1,000 of loan notes.

At 1542 BST, Rio Tinto shares were up 3.5% to 2,312.00p.