BHP Billiton raises 1bn Aussie dollars

BHP Billliton priced a five-year one billion Australian dollar note on Monday issued under its Australian Medium Term Note programme.

According to a report in the Wall Street Journal, the world's largest miner by value sold the five-year bonds at 0.90 percentage points over the underlying swap rate, tighter than original guidance of 0.95 percentage points, demonstrating keen investor demand.

BHP typically borrows in large volumes in the US and European debt markets.

China's slowing economy is generally bad news for Australia's mining industry. With commodity prices easing attempts are being made to cut costs.

In late afternoon trade, BHP Billiton was up 30.50p, or 1.59%, at 1,953.5p.

CM