Rio Tinto, the world’s largest producer of Iron Ore said it has cut down its debt by uSD2.5 billion by completing its bond tender and redemption exercises.
The nominal value of its outstanding bonds from has been cut from approximately USD21 billion to about USD9.5 billion.
The company disclosed that the total notes purchased by Rio Tinto Finance (USA) plc and Rio Tinto Finance (USA) Limited in the $1.72 billion redemption notices and the $781 million tender offers,
The Notes purchased and redeemed have been retired and cancelled and no longer remain outstanding.
The early redemption costs are expected to reduce underlying earnings by approximately $180 million and cash flow from operating activities by approximately $260 million in the first half of 2017. These reductions will be offset by savings in future periods.
