Brazil-based Vale, the world's largest iron ore miner, announced Tuesday that it has entered into a contract for a five-year revolving credit line facility of US$3 billion supplied by a bank syndicate.
The US$3 billion will add to Vale's existing US$1.6 billion revolving credit lines, which will mature during 2011 and 2012. Vale said that "the revolving credit lines work as a short term liquidity buffer that enhances our liquidity and allows more efficient cash management, consistent with Vale's strategic focus on cost of capital reduction."
The revolving credit line was arranged by a bank syndicate comprised by 27 global commercial banks, led by Crédit Agricole, JPMorgan, Mizuho and Natixis. The syndicate also includes the following banks: Santander, HSBC, Bank of America, The Bank of Nova Scotia, CIBC, Société Générale, Bank of Tokyo-Mitsubishi UFJ, Bradesco, Sumitomo, Royal Bank of Canada, Intesa San Paolo, BNP Paribas, Deutsche Bank, Citibank, RBS, Barclays, Bank of China, Morgan Stanley, Credit Suisse, ANZ, Goldman Sachs and National Australian Bank and DZ Bank. The amount offered reached more than two times the volume originally demanded by Vale.