Rio Tinto to cut debt with $2.5bn bond buyback

Miner Rio Tinto has announced a new bond buyback of up to $2.5bn to further reduce gross debt.

The company has issued a redemption notice for around $1.72bn of its 2019 and 2020 US dollar-denominated notes and commenced cash tender offers to purchase up to approximately $781m of its five 2021, 2022 and 2025 US dollar-denominated notes.

The announcement is part of Rio’s ongoing capital management plan and follows the successful completion of a series of $7.5bn US dollar-denominated note redemptions and repurchases last year.

At 1515 BST, the shares were up 1.2% to 3,206p.