Skip to content
AidData logo

Overview

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

Commitments (Constant USD, 2023)$126,277,461
Commitment Year•2011Country of Activity•BrazilDirect Recipient Country of Incorporation•BrazilSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Apr 1, 2011
Last repayment
Mar 30, 2016

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

  • Australia and New Zealand Banking Group (ANZ)
  • Banco Bradesco BBI. S.A.
  • Banco Santander, S.A. (Santander Group) (formerly Banco Santander Central Hispano, S.A.)
  • Bank of America, N.A.
  • Bank of Nova Scotia (Scotiabank)
  • Canadian Imperial Bank of Commerce (CIBC)
  • Crédit Agricole Corporate and Investment Bank (CACIB) (Crédit Agricole CIB) (Formerly Calyon) (Formerly Crédit Agricole Indosuez (CAI))
  • Credit Suisse AG
  • DZ Bank AG
  • Goldman Sachs Group, Inc.
  • HSBC Bank PLC
  • JPMorgan Chase & Co.
  • Mizuho Corporate Bank, Ltd. (MHCB)
  • Morgan Stanley
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • National Australia Bank Limited (NAB)
  • Natixis
  • Royal Bank of Canada (RBC)
  • Société Générale S.A. (SocGen or Societe Generale)
  • Sumitomo Mitsui Banking Corporation (SMBC)

Receiving agencies

Private Sector

  • Vale S.A.

Loan desecription

Bank of China contributes to a $3 billion syndicated loan to Vale for cash management purposes in April 2011

Grant element•17.996%Interest rate (t₀)•1.1095%Interest type•Variable Interest RateMaturity•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. 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 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.

Staff comments

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%.