The board of Brazil's Bradespar SA approved the issuance of simple nonconvertible debenture securities worth up to 700.0 million reais, according to a securities filing.

The three-year notes, worth 10,000 reais each, will be issued June 28 in a single series and mature June 28, 2021.

As of the issuance date, the debentures are entitled to remuneration interest corresponding to 103.95% of the accumulated variation of the average daily interbank deposit rate.

The Brazilian company will use the proceeds from the offering for settlement of financial obligations related to debentures that mature July 6, according to the filing.

As of June 13, US$1 was equivalent to 3.71 Brazilian reais.