Rio Tinto launches $3bn debt reduction programme

Rio Tinto launches $3bn debt reduction programme

Rio Tinto (ASX:RIO) has announced a US$3 billion bond buyback plan to further reduce gross debt.

Taking advantage of its strong liquidity, the mining giant has launched an offer to repurchase its US dollar-denominated bonds as part of an ongoing capital management plan.

So far this year, Rio has completed buybacks for $4.5 billion of its debt and repaid another $1.5 billion of bonds on maturity.

The multi-commodity group reported a 2015 annual loss of $866 million as it faced a severe downturn in global commodity pricing. The company ended its generous dividends policy and had to outline continued cuts in capital expenditure and operating costs.

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