Banks Back CVRD

Brazil’s biggest mining company Cia. Vale do Rio Doce (CVRD) says it has increased its program of committed bank lines to $650 million from $500 million. A syndicate led by HSBC structured the transaction to ensure disbursement independent of shifts in sovereign risk. The new two-year facility has an annual commission fee of 0.3%, and annual interest rate of 075% over Libor if Vale activates the loan. Vale began the backstop program in May 2004 but has not had to draw on the line.