Bank of China contributes to a $3 billion syndicated loan to Vale for cash management purposes in April 2011 (Linked to Project ID#98743 and #98739)

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. In addition to BOC, the following lenders are known to have contributed to the loan syndicate: Crédit Agricole Corporate and Investment Bank (CACIB), JPMorgan Securities LL, Mizuho Corporate Bank, Ltd. (MHCB), Natixis, Banco Santander, HSBC, Bank of America, Bank of Nova Scotia (Scotiabank), Canadian Imperial Bank of Commerce (CIBC), Société Générale S.A. (SocGen), Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), Bradesco, Sumitomo Mitsui Banking Corporation (SMBC), Royal Bank of Canada (RBC), Morgan Stanley, Credit Suisse AG, Australia and New Zealand Banking Group (ANZ), Goldman Sachs, National Australia Bank (NAB), and DZ Bank. CACIB, JPMorgan Securities, MHCB, and Natixis served as lead lenders. Natixis served as administrative agent. 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. Project 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. Project ID#98739 captures BOC's contribution.

Additional details

1. The individual contribution of the 27 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 ($111,111,111.111 USD) to the syndicated loan. 2. A 6-month LIBOR was assumed. The average 6-month LIBOR for April 2011 was 0.442%. Therefore, the interest rate has been coded as 0.442% + 0.65% (65 basis points), or 1.092%.

Number of official sources

1

Number of total sources

6