Skip to content
AidData logo

Overview

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

Commitments (Constant USD, 2023)$194,622,655
Commitment Year•2019Country of Activity•BrazilDirect Recipient Country of Incorporation•BrazilSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 1, 2019
Last repayment (originally scheduled)
Nov 29, 2024

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

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Bank of America, N.A.
  • Bank of Nova Scotia (Scotiabank)
  • Barclays Bank PLC
  • BMO Financial Group (Bank of Montreal)
  • Citigroup Inc.
  • Credit Agricole S.A. (Crédit Agricole Group)
  • HSBC Bank PLC
  • 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))
  • Royal Bank of Canada (RBC)
  • Standard Chartered Bank PLC
  • Sumitomo Mitsui Banking Corporation (SMBC)
  • Toronto-Dominion Bank (TD Bank Group)

State-owned Banks

  • Banco do Brasil S.A.

Receiving agencies

Private Sector

  • Vale S.A.

Loan desecription

Bank of China contributes to a $3 billion syndicated revolving credit facility to Vale for refinancing and liquidity purposes in December 2019

Interest type•UnknownMaturity•5 years

Narrative

Full Description

Project narrative

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). Record ID#98741 captures BOC's contribution. Then, in May 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. Record ID#98743 captures ICBC's contribution. 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. Record 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.

Staff comments

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.