Vale Gets Loan of Up to $1 Billion From Canada’s EDC
Vale SA, the world’s largest iron-ore producer, will receive a credit line of as much as $1 billion from Export Development Canada to finance export projects from the North American country.
Vale, based in Rio de Janeiro, will use up to $250 million from Canada’s export-financing unit credit line to fund investments on its Long Harbor nickel refinery plant in the province of Newfoundland and Labrador, the company said in a statement today.
An additional $250 million of credit will be available for Ontario province projects, the company said. The remaining $500 million will be used to finance purchases of Canadian goods and services for operations outside the country, it said.
Vale said Sept. 10 it will borrow $1.23 billion from the Export-Import Bank of China and the Bank of China Ltd. to buy ships from a Chinese shipyard.
The Canadian loan was negotiated at market interest rates, Vale said. “This agreement is part of a broader financing package for our investment program involving official credit institutions from several countries,” it said.
Vale acquired Canadian nickel miner Inco Ltd. in January 2007 after paying C$19.4 billion ($19 billion) in the biggest foreign acquisition by a Brazilian company.
Ottawa-based EDC is a state-owned agency that funds exporters.
Vale’s preferred shares fell 0.6 percent to 46.49 at 11:25 a.m. in Sao Paulo trading. The stock has added 27 percent this year.