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Tuesday, November 19, 2013

Vale, Petrobras examine bond sales within weeks -source, (NYSE: VALE)

Vale SA and Petr�leo Brasileiro SA, two of Brazil's three largest companies, are considering selling bonds in international debt markets before the end of this year or in early 2014, a source with direct knowledge of the companies' plans said on Tuesday.Vale is considering the sale of 10-year, U.S. dollar-denominated global bonds, said the source, who declined to be identified because the plans are private. The most likely timetable for a sale could be early January, when a window of opportunity usually opens for sales of high-grade, emerging market debt, the source added.In the case of Petrobras a potential bond offering could come either in dollars, euros or British pounds, the source added. The company is gauging pursuing an offering before the year ends, if market conditions allow, or pushing it backwards until the next window of opportunity opens in early 2014, the source said.The companies could try to raise money for 2014 investments and other corporate purposes earlier than usual to mitigate fundraising risk ahead of a presidential election in Brazil and the U.S. Federal Reserve's expected wind-down of years of monetary stimulus. Optimism that Petrobras could soon be allowed by the federal government to increase local gasoline prices could make the company "attractive again from a bondholder perspective," the source noted.

Vale SA (Vale) is a Brazil-based metals and mining company. Shares of VALE fell by 1.75% or $-0.28/share to $15.69. In the past year, the shares have traded as low as $12.39 and as high as $21.88. On average, 18231700 shares of VALE exchange hands on a given day and today's volume is recorded at 17164740.