By Alex MacDonald

LONDON-- Commodities giant Glencore PLC (GLEN. LN) has scrapped its final dividend and plans to raise up to $2.5 billion through a stock sale among other measures valued at a combined $7.7 billion to reduce net debt.

The company said on Monday that the moves aim reduce its net debt nearer to $20 billion by the end of 2016. This compares with the previous guidance of reducing net debt to $27 billion by the end of 2016.

Glencore's move to shore up its finances comes amid growing investor concern about the heavy impact the slump in commodities prices is having on the group's finances.

The Baar, Switzerland-based commodities trader and coal and metals producer said on Monday that 78% of proposed equity issue would be underwritten by Citigroup Inc and Morgan Stanley.

The company's senior management, including Chief Executive Ivan Glasenberg and Chief Financial Officer Steve Kalmin, would underwrite the remaining 22%.

Write to Alex MacDonald at alex.macdonald@wsj.com

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(END) Dow Jones Newswires

September 07, 2015 02:43 ET (06:43 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.
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