Vale Indonesia signs $750 million loan deal with global lenders

Nickel miner PT Vale Indonesia on Thursday signed a loan deal of $750 million with a number of global lenders to help finance its expansion.

Vale signed the loan agreement with a number of banks including Singapore’s United Overseas Bank (UOB), DBS Bank and Japan’s Mizuho Bank, among others, said Bernardus Irmanto, Vale Indonesia CEO.

The loan is “very critical” to help finance development of Vale’s projects in Bahodopi, Pomalaa and Sorowako, Irmanto said.

The financing is structured as sustainability-linked credit, among the first for a mining company in Asia, said UOB Indonesia chief executive Hendra Gunawan. The deal also includes a $250 million green-shoe option, he added.

(By Fransiska Nangoy; Editing by Keith Weir)