Vale contracts a US$ 2 billion revolving credit facility
Vale announces that it has entered into a contract for a five-year revolving credit line facility of US$ 2 billion in a best effort transaction, said in the company's press release.
The revolving credit line was arranged by a bank syndicate comprised by 16 global commercial banks. The syndicate includes the following banks: Barclays, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Crédit Agricole, Citibank, Deutsche Bank, HSBC, Intesa San Paolo, JP Morgan, Mizuho, Natixis, Royal Bank of Canada, The Bank of Nova Scotia, Société Générale, Standard Chartered and Sumitomo.
Vale and some of its wholly-owned subsidiaries can draw funds over the five-year tenor of the facility.With this facility the total amount of revolving credit lines is US$ 5 billion, as we already have an existing US$ 3 billion line, which will mature in 2016. The revolving credit lines work as a short term liquidity buffer that enhances our liquidity and allows more efficient cash management, consistent with Vale's strategic focus on cost of capital reduction.
