Glencore has announced plans to refinance and replace the existing $8.45bn revolving credit facility (RCF) with a new $7.7bn deal.

The company said that it received commitments from its senior banks for $8.4bn in this initial pre-syndication phase, representing an increase from 37 banks of close to $3bn above existing commitment levels.

Glencore further plans to broaden the refinancing by the way of launching of general syndication to some 30 additional banks in the second quarter of 2016.

"This would extend the final maturity until May 2018."

The new RCF is similar to the existing facility being replaced in May 2015 and remains unsecured.

The facility has extension option for one year and 12-month borrower’s term-out option. This would extend the final maturity until May 2018.

Banks including ABN AMRO, Bank of Tokyo Mitsubishi, HSBC, ING and Santander are the bookrunners on the deal.

Recently, Glencore signed a $500m agreement with Franco-Nevada to sell gold and silver calculated by reference to copper produced at Antapaccay mine in Peru.

The deal is part of the $10bn debt reduction plans announced by the company in September 2015.