Brazil's Vale Raises $1 Billion From Reopens Of Overseas Bonds Issue
February 07 2017 - 4:32AM
Dow Jones News
By Rogerio Jelmayer
SAO PAULO--Brazilian mining company Vale SA (VALE) raised $1
billion from the reopening of an overseas bonds issue, paying a
lower interest rate amid strong demand from investors.
The bonds, which will mature in August 2026, will pay an annual
yield of 5.20%. In the original operation, in August 2016--when
Vale also raised $1 billion--it carried an annual yield of
6.25%.
Banco Bradesco BBI, BB Securities Ltd., J.P. Morgan Securities
LLC, MUFG Securities Americas Inc. and Santander Investment
Securities Inc. coordinated the operation.
The bonds sale attracted investors' demand worth $5.4 billion,
according to a banker who declined to be named.
Vale said it will use the proceeds to repurchase 750 million
euros ($804 million) of 4.375% notes set to mature in March 2018,
as well as for general corporate purposes.
Vale's issue came a few weeks after state-run oil company
Petroleo Brasileiro SA (PBR), or Petrobras, sold $4 billion of
bonds--raising double the amount it had expected--after investor
demand exceeded $20 billion.
Days later, local pulp producer Fibria Celulose SA (FIBR3.BR)
and aircraft maker Embraer SA (ERJ) tapped the overseas debt
market, raising a combined amount of $1.45 billion.
Investor interest in Brazilian assets has been rising on
expectations of a recovery in the country's economy this year, said
analysts. After two years of recession, Brazil's economy is
expected to expand 0.5% this year, according to economists.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
(END) Dow Jones Newswires
February 07, 2017 04:17 ET (09:17 GMT)
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