Vale to Sell $1.5 Billion of Bonds in Two-Part International Debt Offering

Vale SA, the world’s largest iron- ore producer, plans to sell $1.5 billion of bonds in overseas markets as soon as today, said a person familiar with the offering.

The Rio de Janeiro-based company may sell $1 billion of 10- year bonds to yield about 210 basis points more than similar- maturity U.S. Treasuries and $500 million more of its 6.875 percent notes due in 2039 at a spread of about 240 basis points, said the person, who declined to be identified because terms aren’t set. A basis point is 0.01 percentage point. Credit Suisse Group AG and JPMorgan Chase & Co. are arranging the sale, Vale said today in a regulatory filing.

Vale’s 2039 bonds yielded 5.97 percent at 12:30 p.m. in New York, up from 5.45 percent on Aug. 19, according to data compiled by Bloomberg. Vale is one of at least four Brazilian companies marketing international bonds this week. Telemar Norte Leste SA, Brazil’s biggest fixed-line phone company, may sell $1 billion of 10-year bonds as soon as today, said a person familiar with the offering who declined to be identified because terms aren’t set.

Brazil’s state development bank, known as BNDES, plans to issue 1 billion euros of seven-year bonds, Moody’s Investors Service said in an e-mailed statement. Construction company Odebrecht SA sold $500 million of perpetual bonds yesterday after doubling the size of the offering.

To contact the reporters responsible for this story: Carlos Caminada at ccaminada1@bloomberg.net; Gabrielle Coppola in New York at gcoppola@bloomberg.net

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