Vale finally confirms VLOC order

Vale originally announced the order for a dozen VLOCs with Rongsheng worth $1.6bn in late 2008 but subsequently there have been periodic reports that the order has been cancelled. These for finally dispelled with last week’s announcement that financing has now been obtained.

The two Chinese financial institutions will provide a credit line of up to $1.229 billion, which corresponds to 80% of the amount required to fund the construction of the vessels. The credit line has a 13-year total term to be repaid, and the funds will be disbursed during the next 3 years according to the construction schedule.