Bank of China contributes to a $3 billion syndicated revolving credit facility to Vale for refinancing and liquidity purposes in December 2019 (Linked to Project ID#98741 and #98743)

In April 2011, financial close was reached on a deal in which a syndicate of 27 banks — including the Bank of China (BOC) — entered into a $3 billion USD senior revolving export credit facility agreement with Vale S.A., a Brazilian iron-order miner, and its Swiss and Canadian subsidiaries, for cash management purposes. This loan carried a maturity period of five years and a reported interest rate of LIBOR plus a margin of 65 basis points (bps). Project ID#98741 captures BOC's contribution. Then, in December 2015, a syndicate of 24 banks — including the Industrial and Commercial Bank of China (ICBC) — signed a $3 billion USD syndicated revolving credit facility with Vale for refinancing and liquidity purposes. This loan carried a maturity period of five years. The proceeds of this loan were used by the borrower to replace and refinance the 2011 $3 billion USD syndicated loan. Then, in December 2019, a syndicate of 16 banks — including BOC — entered into a $3 billion USD syndicated revolving credit facility (RCF) agreement with Vale S.A. for refinancing and liquidity purposes. This loan carried a maturity period of five years. The proceeds were to be used by the borrower to replace the $3 billion USD loan signed in 2015 and to served as a liquidity source for the borrower to allow for more efficient cash management. Project ID#98739 captures BOC's contribution. In addition to BOC, the following lenders contributed to the loan syndicate: Citigroup, Crédit Agricole, MUFG Bank, Ltd., Sumitomo Mitsui Banking Corporation (SMBC), Bank of Montreal, Mizuho Bank, The Bank of Nova Scotia (Scotiabank), JPMorgan Chase Bank, Royal Bank of Canada (RBC), HSBC Bank, The Toronto-Dominion Bank, Bank of America, Barclays, Standard Chartered Bank, and Banco do Brasil. Citigroup, Crédit Agricole, MUFG, and SMBC served as arrangers.

Additional details

1. The individual contribution of the 16 lenders to this $3 billion USD syndicated loan is unknown. For the time being, AidData has estimated the contribution of BOC by assuming that each lender contributed an equal amount ($187,500,000 USD) to the syndicated loan.

Number of official sources

1

Number of total sources

7