Glencore has shared details of its letter of credit (L/Cs) arrangements along with other financial information in a bid to reassure its investors that it is financially robust.

The move follows news of the commodity giant's indebtedness that raised concerns over Glencore's solvency and caused its stock to fall to an all-time low.

Reassurances

Glencore told investors it has US$50 billion of available trade financing and it is only using about one-third third of the facilities, according to Barclays.

The facilities are used for L/Cs and supported by more than 70 banks, according to a statement issued by Barclays that cited comments made by Glencore's management at an investors' meeting.

Glencore also has two revolving credit facilities syndicated with more than 60 lenders, the statement issued at the end of September said.

Debt reduction

To allay fears over its solvency, the commodity giant has also said it will reduce its net debt to US$24 billion from the US$30 billion it reported in June.

Glencore is also reportedly trying to sell its metal by-products businesses in Peru in a deal that it hopes will raise US$1 billion or more.

It is also thought to be considering divesting some of its agricultural businesses.

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