Rio Tinto Sells $3 Billion of Bonds in Second Issue This Year

Rio Tinto Group (RIO), the world’s third- largest mining company, sold $3 billion of bonds in its second sale this year.

The miner of iron ore, copper and diamonds issued $1.25 billion of 1.625 percent, five-year notes yielding 93 basis points more than similar-maturity Treasuries, $1 billion of 2.875 percent, 10-year securities at a relative yield of 120 basis points and $750 million of 4.125 percent, 30-year debt at a spread of 135, according to data compiled by Bloomberg.

The company last sold debt in March with a $2.5 billion four-part offering, including $1 billion of 3.5 percent, 10-year debentures to yield 120 basis points more than similar-maturity Treasuries, Bloomberg data show. The bonds traded at 106.7 cents on the dollar to yield 2.7 percent yesterday, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

The new securities are rated A3, the fourth-lowest level of investment grade, by Moody’s Investors Service, the ratings company said in a statement today. HSBC Holdings Plc, Morgan Stanley and Royal Bank of Scotland Group Plc managed the sale for the London- and Melbourne-based company.

BHP Billiton Ltd. (BHP) and Vale SA are the two biggest mining companies.

To contact the reporter on this story: Sarika Gangar in New York at sgangar@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net