Vale gets $1.229 billion Chinese financing for ore carrier newbuilds

Brazilian mining giant Vale reports that it has entered into agreements with the Export-Import Bank of China and the Bank of China Limited for the financing to build 12 very large ore carriers, each 400,000 dwt (Chinamax), at China's Rongsheng shipyard.

The two Chinese financial institutions will provide a credit line of up to US$ 1.229 billion, which corresponds to 80 percent of the amount required to fund the construction of the vessels. The credit line has a 13-year total repayment term and the funds will be disbursed over the next three years according to the construction schedule.

Vale says the agreement is part of a broader financing package for its investment program involving official credit institutions from several countries.