Rio Tinto Limited
(ASX:RIO) has successfully reduced its gross debt by $2.5 billion.
It comes as the metal and mining giant completed its bond tender and redemption exercises as previously as announced.
Rio Tinto Finance (USA) plc and Rio Tinto Finance (USA) Limited purchased $1.72 billion redemption notices and $781 million in tender offers.
The company says the early redemption costs are tipped to reduce underlying earnings by $180 million and cash flow from operating activities by about $260 million in the first half of 2017.
Rio Tinto says such reductions will however be offset by savings in future periods.
Shares in Rio Tinto Limited
(ASX:RIO) are trading up 1.23 per cent higher $59.09.
