Glencore executives buy $550 million of new shares

Top executives at Glencore, one of the world’s biggest commodities companies, said they would buy a 22% chunk of 1.3 billion new shares issued by the company.

The shares are priced at 125 pence each, raising $US2.5 billion (£1.6 billion) for Glencore, which is on a mission to slash its $US30 billion debt pile.

The stake taken by CEO Ivan Glasenberg and other top executives is valued at around $US55o million.

Investment banks Barclays, Citi and Morgan Stanley are handling placing the rest with investors and the deal is scheduled to go live on September 21.

With the commodities market tanking, and real concerns over Chinese growth and industrial production, the company needed to address fears over its massive debt pile. Glencore is seeking to pay off $US10.2 billion (£6.7 billion) in debt by next year. As well as issuing new shares, the company is cancelling dividends, selling arse sets and cutting costs to meet its goal.

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