Rio to raise $3bn in bond issue

Rio Tinto’s American finance division has priced $US3 billion of fixed and floating rate bonds.

In a statement to the ASX the company said the offer includes $US1 billion of three-year and $US1.25 billion of five-and-a-half-year fixed rate bonds, as well as $US250 million two-year and $US500 million three-year floating rate SEC-registered debt securities. 

The bonds will be issued by Rio Tinto Finance (USA) plc and will be fully and unconditionally guaranteed by Rio Tinto plc and Rio Tinto Limited.

BNP Paribas Securities Corp, J.P. Morgan Securities, Morgan Stanley & Co, Credit Suisse (USA) and RBS Securities acted as joint bookrunners for the deal.

Earlier this year the miner posted a $3 billion loss prompting the company’s newly appointed CEO Sam Walsh to launch into an aggressive cost cutting regime.

The loss was primarily attributed to the company’s struggling aluminium business acquired in 2007 through the purchase of Alcan and Mozambique coal assets bought in 2011.

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