Vale Considers Panda Bond Debut in China

Vale is evaluating a debut in the Chinese debt market possibly as early as 2026, CFO Marcelo Bacci said on Wednesday during an interview on Bloomberg's "Bloomberg Open Interest" show. China is the miner's primary iron ore consumer and generates roughly 50% of the company's revenue, making access to the Chinese financial market a natural step.

The company is considering the move alongside the Brazilian government, which is working to raise about 10 billion yuan (US$ 1.48 billion) in its first issuance of panda bonds this year. CFO Marcelo Bacci noted that the Chinese market for foreign issuers typically sees smaller deals of US$ 400 million to US$ 500 million with maturities of two, three, or five years, though Vale is exploring whether it can secure longer terms.

Separately, CFO Marcelo Bacci stated that an initial public offering for Vale Base Metals is not a priority for the next one to two years. Shaun Usmar, CEO of Vale Base Metals, took charge of the unit in 2024 aiming to turn around the copper and nickel businesses and target 700,000 tons of copper per year by 2035. While the unit aimed in March to be ready for an IPO by mid-year, Vale currently has sufficient capital to fund growth internally.

Bloomberg Intelligence analysts reported this week that Vale's market valuation sits near the bottom among diversified mining peers, largely due to its heavy reliance on iron ore. CFO Marcelo Bacci noted that if the copper market remains strong, future growth or acquisition opportunities could eventually justify an IPO.