Vale signs US$ 3 billion revolving credit facility

Vale signs US$ 3 billion revolving credit facility

12/26/2019

Vale signs US$ 3 billion revolving credit facility

Rio de Janeiro, December 26th, 2019 – Vale SA (“Vale”) announces that it has successfully completed a US$ 3 billion syndicated revolving credit facility, which will be available for five years. 

The revolving credit line was arranged by a banking syndicate comprised of 16 global banks led by Citigroup, Crédit Agricole, MUFG e Sumitomo Mitsui Banking Corporation. The syndicate also includes the following banks: 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. 

This revolving credit facility will replace the US$ 3 billion line that was signed in 2015 with five years availability, which will be cancelled. Therefore, the total available amount in revolving credit facilities remains at US$ 5 billion, as Vale already have an existing agreement for US$ 2 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 2024). 

The revolving credit line works as buffer and allows 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 US$ 3 billion revolving credit facility