Rio Tinto Raises $3 Billion in Four-Part U.S. Dollar Bond Issue

Rio Tinto Plc (RIO), the world’s second-biggest mining company, sold $3 billion of U.S. dollar debt in a four-part sale, according to data compiled by Bloomberg.

Rio Tinto Finance USA Plc issued $250 million of two-year, floating-rate notes that yield 55 basis points more than the London interbank offered rate and $500 million of three-year floaters that pay 84 basis points more than Libor, Bloomberg data show.

The sale also included $1 billion of 1.375 percent securities due 2016 that yield 100 basis points more than similar-maturity Treasuries and $1.25 billion of 2.25 percent debt maturing December 2018 with a spread of 140 more than government bonds.

The offering adds to $18.7 billion of investment-grade dollar debt already sold by metals and mining companies this year, compared with $41.2 billion in all of 2012, Bloomberg data show. Proceeds will be used for general corporate purposes, London-based Rio Tinto said today in a regulatory filing.

BHP Billiton Ltd. (BHP) is the world’s largest mining company. Libor, the rate at which banks say they can borrow in dollars from each other, was set at 0.273 percent today.

To contact the reporter on this story: Charles Mead in New York at cmead11@bloomberg.net

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

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