Vale Seeks Fleet Expansion Finance

13 September 2010 (Last Updated September 13th, 2010 18:30)

Vale will borrow $1.23bn from two Chinese banks to finance the construction of 12 ships as part of its fleet expansion programme. The Bank of China and the Export-Import Bank of China will offer a 13-year loan, covering 80% of the project cost. Each of the 400,000dwt vessels will

Vale will borrow $1.23bn from two Chinese banks to finance the construction of 12 ships as part of its fleet expansion programme.

The Bank of China and the Export-Import Bank of China will offer a 13-year loan, covering 80% of the project cost.

Each of the 400,000dwt vessels will be used to transport iron ore from Brazil to China.

The ships are expected to be delivered between 2011 and 2012, according to Reuters.