Rio Tinto to cut debt by US$1.5bn

Rio Tinto is planning to reduce its debt by nearly $US1.5 billion as part of its debt reduction program.

This comes after Rio announced plans to reduce its gross debt by up to $3 billion earlier this year.

The company has also priced the cash tender offers, with $1076.38 for its 3.500 per cent notes due 2022 and $1,046.37 for its 2.875 per cent notes due 2022; $1182.45 for its 9.000 per cent notes due 2019; $1065.10 for its 3.500 per cent notes due 2020; and $1,095.48 for its 4.125 per cent notes due 2021 and $1,082.05 for its 3.750 per cent notes due 2021.

Under the reduction plan Rio offered a redemption notice for approximately US$1.5 billion of its 2017 and 2018 notes.

The redemption date is 26 October 2016, and along with the offers will bring the total amount of notes repurchased in October 2016 to $3 billion.

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