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Overview

ICBC contributes to $2 billion syndicated revolving credit facility to Vale S.A. for liquidity support

Commitments (Constant USD, 2023)$118,236,264
Commitment Year2017Country of ActivityBrazilDirect Recipient Country of IncorporationBrazilSectorIndustry, Mining, ConstructionFlow TypeLoan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 9, 2017
Last repayment (originally scheduled)
Jun 8, 2022

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • ABN AMRO Bank NV
  • Bank of Nova Scotia (Scotiabank)
  • BMO Financial Group (Bank of Montreal)
  • BNP Paribas S.A.
  • Citibank, N.A.
  • Credit Agricole S.A. (Crédit Agricole Group)
  • Deutsche Bank AG
  • HSBC (Hong Kong and Shanghai Banking Corporation)
  • JPMorgan Chase Bank, N.A. (Chase Bank, formerly the Chase Manhattan Bank)
  • Mizuho Bank, Ltd.
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • Natixis
  • RBC Capital Markets
  • Société Générale S.A. (SocGen or Societe Generale)
  • Standard Chartered Bank PLC
  • Sumitomo Mitsui Banking Corporation (SMBC)
  • UniCredit Bank AG

Receiving agencies

Private Sector

  • Vale S.A.

Loan description

ICBC contributes to USD 2 billion syndicated revolving credit facility to Brazilian mining company Vale S.A. for liquidity support in 2017

Interest typeUnknownMaturity5 years

Narrative

Full Description

Project narrative

On June 9, 2017, Vale S.A.—a Brazilian mining and metals company that primarily produces iron ore and nickel—announced that it had secured a $2 billion syndicated revolving credit facility for liquidity support from 18 banks, including the Industrial and Commercial Bank of China. The revolving credit facility had a 5 year maturity. The syndicated loan lead arrangers are Citibank, Crédit Agricole, RBC Capital Markets and The Bank of Nova Scotia. The following banks also contributed to the syndicated loan: 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. This revolving credit facility would replace a $2 billion line of credit from 2013 with a 5 year maturity, which would be cancelled. Vale S.A. had another existing $3 billion syndicated revolving credit facility from 2015 with a 5 year maturity (see Record ID #98743 for ICBC's contribution to the 2015 facility). As of the signing of the 2017 agreement, Vale's total available amount in revolving credit facilities was $5 billion after the cancellation of the 2013 facility. On March 24, 2020, Vale S.A. announced its decision to disburse the total available amount ($5 billion) from its revolving credit facilities to support short-term liquidity management and combat risks to its balance sheet from the COVID-19 pandemic. Then, on September 14, 2020, Vale S.A. announced its repayment of the $5 billion to fully restore the availability of the revolving credit facilities.

Staff comments

1. The breakdown of contributions between the 18 banks to this $2 billion revolving credit facility is unknown. For now, AidData has assumed that each bank contributed equally ($111,111,111) to the syndicated loan.