OREANDA-NEWS. Vale informs disbursement from its revolving credit lines.

Some of the amount raised will cover the funds used to amortize bonds due in January 2016.

Vale S.A. (Vale) informs a disbursement of US$ 3 billion from its US$ 5 billion revolving credit lines to increase liquidity and bridge potential cash flow needs until the conclusion of its divestment program, particularly the conclusion of the Coal transaction comprising Moatize and the Nacala Logistics Corridor. Some of the amount raised will cover the funds used to amortize bonds due in January 2016.

Vale is also working on long-term debt transactions to reduce the use of the Revolving Credit Lines while the Divestment Program is carried out. These transactions are expected to preserve Vale's average cost of debt.

This strategy is consistent with Vale's focus on liquidity management and cost of capital reduction.