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FINNEWS LATAM-Vale to sell $321 mln in bonds for railway building

Brazilian mining giant Vale SA asked for permission to sell 750 million reais ($321 million) of notes maturing between 2021 and 2029 to finance railway construction in the Amazon state of Pará, the company said in securities filing late Sunday. The notes will be sold under a so-called infrastructure debt program, which allows companies to issue tax-free securities to finance long-term investment projects.

The company expects to sell the notes with an issue date of Jan. 15, 2014. Vale, the world's largest producer of iron ore, could sell a further 262.5 million reais if buyers exercise the right to acquire additional and supplemental lots, the filing said. The notes mature in 2021, 2024, 2026 and 2029. Vale hired Bradesco BBI to handle the sale as well as the investment banking units of Banco do Brasil SA and Itau Unibanco Holding SA.