Overview

China Eximbank provides $300 million loan to Vale International S.A. to support services under certain shipping service agreements

Commitments (Constant USD, 2023)$283,475,739

Commitment Year•2022Country of Activity•BrazilDirect Recipient Country of Incorporation•BrazilSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Nov 30, 2022

Last repayment (originally scheduled): Nov 29, 2025

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 Policy Banks

Export-Import Bank of China (China Eximbank)

Receiving agencies

Private Sector

Vale International SA

Implementing agencies

Private Sector

Vale International SA

Guarantors

Private Sector

Vale S.A.

Loan description

China Eximbank provides $300 million loan to Vale International S.A. to support services under certain shipping service agreements

Interest type•Variable Interest RateMaturity•3 years

Narrative

Full Description

Project narrative

On November 30, 2022, China Eximbank and Vale International S.A. signed a $300 million (BRL 1,582 million) loan agreement. The loan carried a 3-year maturity (final maturity date: 2025) and an interest rate indexed to the Secured Overnight Financing Rate (“SOFR”). Vale S.A. -- a Brazilian multinational corporation engaged in metals and mining -- issued a corporate guarantee in support of the loan. The proceeds of the loan were to be used to support services for Vale International S.A. under certain shipping service agreements.

Staff comments

1. The transaction involved multiple jurisdictions including Brazilian, Swiss and Chinese. Vale International S.A. is the Swiss subsidiary of Vale S.A. 2. Vale S.A. is one of the largest logistics operators in Brazil and the largest producer of iron ore and nickel in the world. 3. Milbank advised on the transaction. See https://www.milbank.com/en/news/milbank-advises-export-import-bank-of-china-in-connection-with-dollar300-million-term-loan-facility-to-vale-international-sa.html