Vale SA signed a US$3 billion five-year revolving credit facility from a banking syndicate of 16 global lenders led by Citigroup, Crédit Agricole, MUFG and Sumitomo Mitsui Banking Corp.

The Brazilian iron ore major said Dec. 26 that the new credit line replaces a US$3 billion facility of the same tenor signed in 2015, which will be canceled, and is in addition to a US$2 billion credit line available for drawdown until 2022.

Vale said the new facility will act as a buffer and aligns with its focus on lowering borrowing costs.