Rio Tinto completes $2.5 billion debt reduction
This means that, since the start of 2016, the London-listed miner has reduced the nominal value of its outstanding bonds from around $21 billion to about $9.5 billion.
It expects the early redemption costs to reduce underlying earnings by around $180 million and its cash flow from operating activities by around $260 million in the first half of 2017, but expects these reductions to be offset by savings in future periods.
Rio Tinto set out the debt reduction plan in May, and it follows on from $7.50 billion worth of notes that were redeemed during 2016. ■