Vale raises $750 million with bond issuance due 2056

Brazilian miner Vale, through its wholly-owned subsidiary Vale Overseas Limited, priced an issuance of $750 million in subordinated notes due 2056, the company said on Wednesday in a securities filing.

The notes were priced at a yield of 6.125% to the first call date, with an issue price of 99.488% of the principal amount, Vale said.

The bonds carry an initial interest rate of 6% per year, with semi-annual payments; the interest rate will be reset every five years starting on February 25, 2031.

Vale added it intends to use the net proceeds for general corporate purposes, including replenishing cash after its buyback of local debentures earlier this month.

(By Fernando Cardoso; Editing Natalia Siniawski)