Vale signs a US$ 2 billion revolving credit facility

6/9/2017

Vale signs a US$ 2 billion revolving credit facility

Rio de Janeiro, June 9, 2017 – Vale S.A. (Vale) announces that it has successfully completed a US$ 2 billion syndicated revolving credit facility, which will be available for five years. 

The revolving credit facility was arranged by a banking syndicate comprised of 18 global banks, led by Citibank, Crédit Agricole, RBC Capital Markets and The Bank of Nova Scotia. The syndicate also includes the following banks: ABN AMRO, Bank of Montreal, Deutsche, Mizuho, Sumitomo, UniCredit Bank, HSBC, Industrial and Commercial Bank of China, JPMorgan, Société Générale, Standard Chartered, BNP Paribas, The Bank of Tokyo-Mitsubishi UFJ and Natixis. The commitments received from the banks exceeded the amount originally requested by the company. 

This revolving credit facility will replace the US$ 2 billion line that was signed in 2013 with five- years availability, which will be cancelled. Therefore, the total available amount in revolving credit facilities remains at US$ 5 billion, as we already have an existing agreement for US$ 3 billion. These facilities are liquidity sources for Vale and some of its wholly-owned subsidiaries and could be drawn at any time throughout the life of the facilities (US$ 2 billion until 2022 and US$ 3 billion until 2020). 

The revolving credit lines work as a buffer and allow more efficient cash management, consistent with Vale’s strategic focus on cost of capital reduction.

 

Ever since the Covid-19 outbreak began, our highest priority is the health and safety of our employees. Our IR team adopted work-from-home, and as we continue to face these new circumstances, we strongly recommend you prioritize e-mail and online engagement.

For further information, please contact:

Vale.RI@vale.com
Ivan Fadel: ivan.fadel@vale.com
Andre Werner: andre.werner@vale.com
Mariana Rocha: mariana.rocha@vale.com
Samir Bassil: samir.bassil@vale.com

This press release may include statements that present Vale’s expectations about future events or results. All statements, when based upon expectations about the future, involve various risks and uncertainties. Vale cannot guarantee that such statements will prove correct. These risks and uncertainties include factors related to the following: (a) the countries where we operate, especially Brazil and Canada; (b) the global economy; (c) the capital markets; (d) the mining and metals prices and their dependence on global industrial production, which is cyclical by nature; and (e) global competition in the markets in which Vale operates. To obtain further information on factors that may lead to results different from those forecast by Vale, please consult the reports Vale files with the U.S. Securities and Exchange Commission (SEC), the Brazilian Comissão de Valores Mobiliários (CVM) and in particular the factors discussed under “Forward-Looking Statements” and “Risk Factors” in Vale’s annual report on Form 20-F.

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Vale signs a US$ 2 billion revolving credit facility