Glencore expands bond buyback as it better manages debt

|About: Glencore Plc (GLCNF)|By:, SA News Editor

Glencore (OTCPK:GLCNF, OTCPK:GLNCY) says it has raised the size of a bond buyback tender to $1.49B from $1.25B, as it tries to capitalize on favorable conditions to reduce its debt burden.

Industry sources say Glencore's move will reduce the amount of debt maturing each year.

Big miners are in a stronger position after racking up high levels of debt last year because of the commodity price crash, but likely will remain cautious and use the bond market only to strengthen their balance sheets and eventually increase dividends rather than embark on aggressive expansion plans.