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Rio Tinto Finance (USA) has priced its USD2.5 billion fixed rate bonds on March 20, with a weighted average coupon of 2.97 percent and weighted average maturity of 11.6 years including: a 1.125 percent coupon for USD500 million of three year notes; a two percent coupon for USD500 million of five year notes; a 3.5 percent coupon for USD1 billion of 10-year notes and a 4.75 percent coupon for USD500 million of 30-year notes. Citi, Credit Suisse, Deutsche Bank and J.P. Morgan acted as joint bookrunners.
On February 22, rival BHP Billiton priced USD1 billion of two year senior floating rate notes at three month USD Libor plus 27bp; a one percent coupon for USD1 billion of three year senior notes; a 1.625 percent coupon for USD1.25 billion of five year senior notes; a 2.875 percent coupon for USD1 billion of 10-year senior notes and a 4.125 percent coupon for USD1 billion of 30-year senior notes. Barclays Capital and J.P. Morgan acted as joint bookrunners.
The two companies, which remain focussed on mining, are ramping up investments in Australia, among other locations. Glencore’s proposed all-share merger with miner Xstrata will create an additional rival although the trading company will see an increase in agricultural commodities trading should its bid for Canada’s leading grain handler Viterra succeed.
