BNDES hires Bradesco to sell 214m in local debt of miner Vale

Brazilian development bank BNDES has hired Banco Bradesco BBI to coordinate a potential secondary offering of up to 214 million local bonds of miner Vale. Banco Citibank, Banco JP Morgan and Banco Itaú BBA will be also part of the bank consortium, BNDES said. 

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 BRL2.5 billion ($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.