RIO DE JANEIRO – Brazilian development bank BNDES hired Banco Bradesco BBI SA to coordinate a potential secondary offering of up to 214-million local bonds of miner Vale, it said in a filing on Friday.
The sale would be part of Brazil's government efforts to raise cash by reducing its stake in big Brazilian firms and state-controlled companies.
BNDES issued the filing in reaction to a press report by "Veja" magazine saying banks have been hired to organize what could be a 2.5-billion reais ($470-million) transaction.
The development bank said the potential offering will include 141 727 784 in shareholders debentures, or local bonds, owned by the government. The remainder of the debt securities is owned by BNDESPar, the bank's investment arm, which holds stakes in companies and is fully controlled by the government.
A total of 214 329 063 in Vale's debt securities would be up for sale, the institution said in the statement.
The development bank said the information should not be considered as an offer announcement in Brazil or abroad.
Banco Citibank, Banco JP Morgan and Banco Itaú BBA will be also part of the bank consortium, BNDES said.
Vale issued and distributed to its shareholders 388 559 056 of Vale's so-called "debentures participativas" when the miner was privatized in 1997. Each such paper corresponded to a Vale share. Since 2002, the shareholders local bonds have been traded in the secondary market.