RIO Rio Tinto Plc

   By Rhiannon Hoyle 
 

SYDNEY--Rio Tinto PLC (RIO) said it would issue US$1.2 billion of 10-year bonds, enabling it to repay existing debts due next year.

The Anglo-Australian mining company said it had priced the 10-year fixed-rate debt securities with a coupon of 3.75%. That is higher than its existing interest rate, although significantly lower than smaller iron-ore rivals such as Fortescue Metals Group Ltd. (FMG.AU) have paid to restructure their debts in the face of weaker commodity prices.

The bonds will mature on June 15, 2025.

Rio Tinto said it could now redeem all outstanding debt due to mature in 2016, which had coupons between 2.25%-2.50% and totaled US$1.2 billion.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

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