Brazil’s Vale Sells $1.25 Billion More Dollar Bonds Due in 2022

Vale SA (VALE3), the world’s largest iron- ore producer, sold $1.25 billion more of its 4.375 percent dollar bonds that mature in 2022, according to a person familiar with the transaction.

Vale sold the debt today to yield 200 basis points, or 2 percentage points, above U.S. Treasuries, according to data compiled by Bloomberg.

Proceeds from the issuance will be used for “general corporate purposes,” the company said today in a statement. Vale, Brazil’s largest exporter, is spending $21.4 billion this year in existing operations and new projects amid environmental licensing delays, labor shortages and cost pressures. The company invested a record $18 billion excluding acquisitions in 2011, less than its initial $24 billion spending plan.

Vale sold $1 billion of the bonds on Jan. 4 to yield 4.525 percent. Barclays Plc, Citigroup Inc. and Deutsche Bank AG arranged today’s sale.

To contact the reporters on this story: Drew Benson in New York at abenson9@bloomberg.net; Juan Pablo Spinetto in Rio de Janeiro at jspinetto@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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