Brazil's development bank to sell Vale debentures

Brazil's state-owned development bank Banco Nacional de Desenvolvimento Econômico e Social intends to launch a secondary offering of Vale SA debentures, with closing expected in the second quarter.

The planned offering follows the bank's recent sale of its 3.6% stake in Vale for 11 billion reais as part of a broader government divestment plan.

Vale did not specify the value of the debentures in its March 2 release. As of Dec. 31, 2020, the mining giant had 388,559,056 debentures issued in the market, with 55% owned by the bank.

Vale said it does not intend to participate in the offering as a potential buyer, citing its lack of necessary regulatory authorizations and its capital allocation prerogative at this time.

As of March 3, US$1 was equivalent to 5.77 Brazilian reais.