LONDON – Rio Tinto Group will repurchase about $1.7-billion of bonds, its second buyback in about two months, as it seeks to cut debt.
The world’s second-largest mining company is buying back $943-million of 6.5% notes due in July 2018 and $804-million of 2.25 percent securities maturing in December the same year, both at premiums to their face value, according to a statement from the company on Tuesday.
Rio Tinto said it may buy as much as $3-billion of debt, starting with the 2018 notes. Holders of bonds due 2020, 2021 and 2022 still have until July 5 to tender.
Rio Tinto is seeking to bolster its balance sheet following a collapse in commodity prices. The miner froze salaries and reduced travel costs in January and announced plans the following month to cut its dividend. It repurchased $1.5-billion of notes in April and May.
Other miners also bought back debt even as pressure on the sector eased this year after commodities rebounded 13%. Anglo American Plc spent $1.7-billion buying notes in euros, dollars and pounds earlier this year and steelmaker ArcelorMittal repurchased the equivalent of about $1.1-billion of euro- and dollar-denominated bonds in April.