Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 360

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 360
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194 |          105 |
| Total                |                           -12,431 |                -1,413 |                              -343 |                       8,484 |                  212 |       -5,491 |       -4,231 |

20 Borrowings Recognition and measurement Borrowings are recognised initially at fair value, net of transaction costs incurred, and are subsequently measured at amortised cost. Our policy is to predominantly borrow in US dollars (USD) at floating interest rates, either directly or through the use of derivatives, as: – the majority of our sales are in USD – historically a lower cost of borrowing has been observed from maintaining a floating rate exposure – historically there has been a correlation between interest rates and commodity prices. For bonds with fixed interest rates, we generally enter into interest rate swaps to convert them to floating rates. The tenor of the interest rate swaps is sometimes shorter than the tenor of the bond which means we remain exposed to long-term fixed-rate funding. As interest rate swaps mature, new medium dated swaps are generally transacted to maintain this floating rate exposure; however, we may elect to maintain a proportion of fixed-rate funding after considering market conditions, the cost and form of funding and other related factors. We have designated the swaps to be in fair value hedge relationships with the corresponding period of future interest payments of the respective debt. Where we borrow non-US denominated debt, we generally enter into cross-currency interest rate swaps to convert the principal and fixed interest coupon to a USD nominal with a USD interest coupon.

| Annual Report on Form 20-F 2024 | 199 | riotinto.com |

Financial statements | Notes to the consolidated financial statements

20 Borrowings continued

Borrowings

The characteristics and carrying value of the Group’s borrowings at 31 December are summarised below.

|                                                                                           | Carryingvalue2024US$m | Carryingvalue2023US$m | Nominalvalue ofhedged item2024US$m | Nominalvalue ofhedged item2023US$m | Weighted averageinterest rateafter swaps (whereapplicable)(b) | Swapmaturity(whereapplicable) |
| Rio Tinto Finance plc Euro Bonds2.875%due 2024(a)(b)(c)                                   |                     – |                   452 |                                  – |                                463 |                                                               |                               |
| Rio Tinto Finance (USA) Limited Bonds7.125%due 2028(a)(b)                                 |                   780 |                   804 |                                750 |