Vale SA announced it has successfully completed a $3bn syndicated revolving credit facility, which will be accessible for five years. The Brazil-headquartered global mining company produced 384.6mn mt of iron ore, 244.6mt of nickel, 55.3mn mt of iron ore pellets and 11.6mn mt of coal per year in 2018.

 

The credit facility is a liquidity source for Vale and some of its wholly-owned subsidiaries, the company announced in a statement, and can be drawn upon at any time throughout the life of the resources at $2bn until 2022 and $3bn until 2024. The revolving line of credit will also work as a safeguard and allow more efficient cash management, consistent with Vale’s strategic focus on cost of capital reduction across its mining projects.

 

Vale’s $3bn line that was signed in 2015 with five years availability, will be cancelled and replaced with this revolving credit facility. The total available amount in revolving credit facilities remain at $5bn as Vale already has an existing agreement for $2bn. 

 

The transaction was arranged by a banking organization consisting of 16 global banks led by Citigroup, Crédit Agricole, MUFG, Sumitomo Mitsui Banking Corporation, and includes Bank of China, Bank of Montreal, Mizuho, The Bank of Nova Scotia, JP Morgan, Royal Bank of Canada, HSBC, The Toronto-Dominion Bank, Bank of America, Barclays, Standard Chartered and Banco do Brasil.

Leave a Reply

Your email address will not be published.