Company: RTNTF
Filing Date: 2025-03-10
Form Type: 424B2
Source: 0001104659-25-022024
Chunk: 19

Company: RIO TINTO LTD
Filing Date: 2025-03-10
Form: 424B2
Chunk 19
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 to RFRs as reference rates in the capital markets. Market participants and relevant working groups are still exploring alternative reference rates, including various ways to produce term versions of risk-free rates (which seek to measure the market’s forward expectation of an average of such rates over a designated term).

In particular, on June 22, 2017, the Alternative Reference Rates Committee (“ARRC”) convened by the Board of Governors of the Federal Reserve System and the NY Federal Reserve identified SOFR as its recommended alternative to the U.S. dollar London interbank offered rate (“LIBOR”) and as the rate that, in the consensus view of the ARRC, represented best practice for use in certain new U.S. dollar derivatives and other financial contracts. In August 2019 and May 2020, the ARRC released model interest rate conventions for SOFR-linked securities (including for the calculation of daily compounded SOFR); however, there currently is no uniform market convention with respect to the calculation of daily compounded SOFR or SOFR generally.

For each Interest Period, the interest rate on the Floating Rate Notes is based on a daily compounded SOFR rate calculated using the formula described in “Description of the Guaranteed Notes” below. Since SOFR is a relatively new market rate, the Floating Rate Notes may have no established trading market when issued, and an established trading market may never develop or may not be very liquid. If SOFR does not prove to be widely used in securities like the Floating Rate Notes, the trading price of the Floating Rate Notes may be lower than those of debt securities linked to rates that are more widely used. The Floating Rate Notes may not be able to be sold or may not be able to be sold at prices that will provide a yield comparable to similar investments that have a developed secondary market, and may consequently suffer from increased pricing volatility and market risk.

Market terms for debt securities indexed to SOFR, such as the spread over the index reflected in interest rate provisions and the formula and related conventions described in “Description of the Guaranteed Notes” below to calculate Compounded Daily SOFR for the Floating Rate Notes, may evolve over time, and trading prices of the Floating Rate Notes may be lower than those of later-issued SOFR-linked debt securities which contain more settled and different market terms as a result. In particular, we may in the future also issue securities referencing SOFR that differ materially in terms of interest determination when compared with any previous SOFR-referenced securities, including the Floating Rate Notes. Additionally, the nascent development of