- Write by:
-
Wednesday, June 26, 2024 - 02:23:51
-
85 Visit
-
Print
Vale, the world’s second largest iron-ore producer, tapped international bond markets for the first time in a year amid a debt buyback.
Vale Overseas Ltd, a subsidiary of the Rio de Janeiro-based firm, sold $1 billion of new dollar notes maturing in 30 years at a spread of 210 basis points over similar US Treasuries, according to people familiar with the matter. That’s tighter than initial price talks of about 250 basis points, said the people, who asked not to be identified because they’re not authorized to speak about it.
The company is proposing to repurchase up to $500 million of bonds due in 2034, 2036 and 2039 for cash, according to a statement on Tuesday. The transaction is subject to the completion of an offering of Vale Overseas notes, the company said.
The transaction “helps reduce interest costs and spread out maturities,” also increasing liquidity on the curve, said Peter Varga, a senior portfolio manager at Erste Asset Management GmbH.
Vale last tapped global markets in June of 2023, with a $1.5 billion sale of bonds maturing in 2033. Those notes have handed investors a loss of 1% since the start to the year, compared to a 2.7% gain for emerging-market bonds, according to data compiled by Bloomberg.
Bonds of the Brazilian miner were little changed across the curve on Tuesday, with some maturities edging up. Notes due in 2039 rose as much as 2.9 cents to 109.7 cents on the dollar, according to Trace data.
Short Link:
https://www.miningnews.ir/En/News/628615
Canada published a list of dozens of Chinese steel and aluminum products on which it will place a 25% tariff, starting ...
Iron ore futures surged for a fifth straight session on Monday, as top consumer China’s latest property stimulus and a ...
Sitting on a cash windfall from the elevated oil and gas prices of recent years, energy traders Mercuria and Gunvor are ...
Prices of iron ore futures surged on Wednesday to their highest levels in more than three weeks, as a fresh batch of ...
Fortescue Ltd., the world’s fourth-biggest iron ore miner, will pay $2.8 billion to replace two-thirds of its fleet of ...
Prices of iron ore futures surged on Tuesday to log their largest intraday gain in more than a year, as a wave of fresh ...
Mining companies’ rising asset retirement obligations (AROs) could exceed the industry’s debt obligations by 2033, ...
Iron ore futures fell on Monday to their lowest in more than a year, as investors weighed prospects of soft China demand ...
Nippon Steel plans to sell at least 30 billion yen ($211 million) in assets in this fiscal year to manage its debt, the ...
No comments have been posted yet ...