Vale's Murilo Ferreira seals Chinese iron ore deals as Li Keqiang visits Brazil
Post Date: 21 May 2015 Viewed: 565
Murilo Ferreira made the best out of China's latest Brazil tour.
The chief executive officer of iron-ore giant Vale SA signed four deals with Chinese counterparts during Tuesday's visit by Premier Li Keqiang to Brasilia, including a credit agreement potentially worth as much as $US4 billion ($5.05 billion).
The Rio de Janeiro-based miner also scooped up $US445 million from divesting four of its huge iron-ore ships and agreeing to sell four more carriers to a Chinese shipping firm.
The accords come as Vale, the world's largest iron-ore producer, seeks to boost cash as it faces a supply glut that sent prices for the steelmaking ingredient to the lowest in a decade in April. The company said on May 15 that it had agreed to terms on a $US3 billion revolving loan with 24 banks for five years.
As part of Tuesday's announcements, Vale signed a memorandum of understanding with Industrial & Commercial Bank of China, the world's largest lender, to receive as much as $US4 billion in syndicated and bilateral loans, among other potential financing. The miner also said an agreement with the Export- Import Bank of China would free two loans of as much as $US1.2 billion each to China Merchants Group and China Cosco Holdings to provide shipping services to transport Vale's iron ore.
Vale dropped 0.5 per cent to close at 16.89 reais in Sao Paulo on Tuesday, the lowest since April 22.