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Diversified miner BHP has announced that it will begin a programme to buy back its own bonds, with the spend capped at $1.9bn (R32bn), excluding interest.
The multicurrency buyback targets notes issued in 2015 and will be funded through cash. This will reduce debt and interest payments, the miner said.
The group had reported it had net debt of $12bn as of its year to end-June, up about 27% from a year previously, although this was at the lower end of its target range of $12bn-$17bn.
Total interest-bearing liabilities stood at $27bn, up about 9% from the prior year. Part of the increase in debt was attributable to accounting changes.
In afternoon trade on Wednesday, BHP’s share was up 0.27% to R389.55, having risen about 18% so far in 2020.