https://newsletter.en.creamermedia.com
Iron Ore
Iron Ore
iron-ore

Vale returns to global debt markets with sale of dollar bonds

26th June 2024

By: Bloomberg

  

Font size: - +

Vale, the world’s second largest iron-ore producer, is tapping international bond markets for the first time in a year amid a debt buyback.

Vale Overseas, a subsidiary of the Rio de Janeiro-based firm, is selling new dollar notes maturing in 30 years, according to people familiar with the matter. Initial price talks are taking place at a spread of about 250 basis points over similar US Treasuries, said the people, who asked not to be identified because they’re not authorized to speak about it.

The company is proposing to repurchase up to $500-million of bonds due in 2034, 2036 and 2039 for cash, according to a statement on Tuesday. The transaction is subject to the completion of an offering of Vale Overseas notes, the company said.

The transaction “helps reduce interest costs and spread out maturities,” also increasing liquidity on the curve, said Peter Varga, a senior portfolio manager at Erste Asset Management.

Vale last tapped global markets in June of 2023, with a $1.5-billion sale of bonds maturing in 2033. Those notes have handed investors a loss of 1% since the start to the year, compared to a 2.7% gain for emerging-market bonds, according to data compiled by Bloomberg.

Edited by Bloomberg

Comments

 

Showroom

ESAB showroom image
ESAB South Africa

ESAB South Arica, the leading supplier of high-end welding and cutting products to the Southern African industrial market is based in...

VISIT SHOWROOM 
SABAT
SABAT

From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 13 December 2024
Magazine round up | 13 December 2024
13th December 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:1.236 1.331s - 190pq - 2rq
Subscribe Now