March 28 (Bloomberg) -- Vale SA, 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.
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