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| Glencore announces debt reduction measures | |
| (about 1 hour later) | |
| Commodities supplier and trading giant Glencore has announced plans to reduce its net debt of some $30bn (£19.8bn) via a proposed equity issuance, among other measures. | |
| The firm said the equity issuance would raise up to $2.5bn. | |
| Together with other debt reduction measures, Glencore said it aimed to reduce its net debt "to the low US$20bns by the end of 2016". | |
| Glencore suspended its Hong Kong-listed shares ahead of the announcement. | |
| In August, the firm reported a first-half loss of $676m after being hit by falling oil and metal prices. | In August, the firm reported a first-half loss of $676m after being hit by falling oil and metal prices. |
| The Switzerland-based firm also said at the time that investment spending in 2016 was expected to be lower than this year. | The Switzerland-based firm also said at the time that investment spending in 2016 was expected to be lower than this year. |
| Prices for copper and coal - two of the company's most important products - have fallen to six-year lows in recent times. | Prices for copper and coal - two of the company's most important products - have fallen to six-year lows in recent times. |
| Glencore's market value has also fallen more than 50% this year and the firm has been under pressure to cut its debt. | Glencore's market value has also fallen more than 50% this year and the firm has been under pressure to cut its debt. |
| Ratings agency Standard & Poor's said last week it might lower Glencore's credit rating if the giant did not reduce its debt. | Ratings agency Standard & Poor's said last week it might lower Glencore's credit rating if the giant did not reduce its debt. |
| "We would likely lower the rating on Glencore if we perceive reduced commitment to defending the rating or if commodity prices persist below our price deck or fall further, absent material offsetting factors," the ratings agency said at the time. | "We would likely lower the rating on Glencore if we perceive reduced commitment to defending the rating or if commodity prices persist below our price deck or fall further, absent material offsetting factors," the ratings agency said at the time. |
| Glencore's chief executive Ivan Glasenberg and chief financial officer Steven Kalmin said in a statement on Monday the measures announced would not affect their core business activities. | |
| They also said the measures had "been designed to sensibly accelerate the deleveraging of our balance sheet [and] maximise future cash-flow generation in the current weak commodity price environment" . |