| Cash flows from financing activities |
24. Cash flows from financing activities
Reconciliation of cash flows from
liabilities arising from financing activities
| Schedule of reconciliation of debt to cash flows |
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Quoted in the secondary market |
Other debt contracts in Brazil |
Other debt contracts on the international market |
Total loans and borrowings |
Subordinated notes |
Total |
| December 31, 2022 |
6,497 |
280 |
4,404 |
11,181 |
– |
11,181 |
| Additions |
1,500 |
– |
450 |
1,950 |
– |
1,950 |
| Payments (i) |
(542) |
(50) |
(66) |
(658) |
– |
(658) |
| Interest paid (ii) |
(454) |
(24) |
(265) |
(743) |
– |
(743) |
| Cash flow from financing activities |
504 |
(74) |
119 |
549 |
– |
549 |
| Effect of exchange rate |
19 |
20 |
(64) |
(25) |
– |
(25) |
| Interest accretion |
454 |
24 |
288 |
766 |
– |
766 |
| Non-cash changes |
473 |
44 |
224 |
741 |
– |
741 |
| December 31, 2023 |
7,474 |
250 |
4,747 |
12,471 |
– |
12,471 |
| Additions |
2,033 |
– |
2,822 |
4,855 |
– |
4,855 |
| Payments (i) |
(1,037) |
(46) |
(1,522) |
(2,605) |
– |
(2,605) |
| Interest paid (ii) |
(527) |
(20) |
(321) |
(868) |
– |
(868) |
| Cash flow from financing activities |
469 |
(66) |
979 |
1,382 |
– |
1,382 |
| Acquisition of Aliança Energia |
214 |
32 |
– |
246 |
– |
246 |
| Effect of exchange rate |
(121) |
101 |
(164) |
(184) |
– |
(184) |
| Interest accretion |
503 |
20 |
354 |
877 |
– |
877 |
| Non-cash changes |
596 |
153 |
190 |
939 |
– |
939 |
| December 31, 2024 |
8,539 |
337 |
5,916 |
14,792 |
– |
14,792 |
| Additions |
1,830 |
– |
2,888 |
4,718 |
750 |
5,468 |
| Transaction costs |
– |
– |
– |
– |
(9) |
(9) |
| Payments (i) |
(373) |
(44) |
(1,037) |
(1,454) |
– |
(1,454) |
| Interest paid (ii) |
(610) |
(23) |
(367) |
(1,000) |
– |
(1,000) |
| Cash flow from financing activities |
847 |
(67) |
1,484 |
2,264 |
741 |
3,005 |
| Transfer to held for sale (Energy Assets) |
(210) |
(30) |
– |
(240) |
– |
(240) |
| Effect of exchange rate |
145 |
22 |
15 |
182 |
– |
182 |
| Interest accretion |
732 |
23 |
381 |
1,136 |
4 |
1,140 |
| Non-cash changes |
667 |
15 |
396 |
1,078 |
4 |
1,082 |
| December 31, 2025 |
10,053 |
285 |
7,796 |
18,134 |
745 |
18,879 |
(i) Includes bond premium repurchase.
(ii) Classified as operating activities
in the statement of cash flows.
Fundings in 2025
| • | In the fourth quarter of 2025, the Company (i) issued
subordinated notes in the total amount of US$750, with maturity in 2056, and (ii) contracted loans of US$420, indexed to Secured Overnight
Financing Rate (“SOFR”), adjusted for spread, and maturing in 2029. |
| • | In
the third quarter of 2025, the Company contracted loans of US$1,011 indexed to SOFR or Loan Prime Rate (LPR) adjusted for spread adjustments
with maturities between 2028 and 2030. |
| • | In
the second quarter of 2025, the Company (i) contracted loans of US$596, indexed to SOFR plus spread adjustments, with maturities between
2026 and 2030, and (ii) issued debentures of US$1,080 (R$6 billion), indexed to Brazilian Consumer Price Index (IPCA) plus 6.76% to 6.89%
per year, paid semi-annually. The issuance was structured in three series of US$363 (R$2 billion) each, maturing in 2032, 2035, and 2037.
The proceeds will be used in infrastructure investment projects related to railway concessions. |
| • | In
the first quarter of 2025, the Company (i) contracted loans of US$861 indexed to SOFR plus spread adjustments with maturities between
2026 and 2029, and (ii) issued bonds of US$750 with a coupon of 6.40% per year, payable semi-annually, and maturing in 2054. |
Payments in 2025
| • | In the fourth quarter
of 2025, the Company paid interest on debentures in the amount of US$71. |
| • | In
the third quarter of 2025, the Company settled loans of US$449. |
| • | In
the second quarter of 2025, the Company paid interest on debentures in the amount of US$28. |
| • | In
the first quarter of 2025, the Company settled loans of US$150 and redeemed notes maturing in 2034, 2036, and 2039 in the total amount
of US$329 and paid a premium of US$44, recorded as “Bond premium repurchase” in the financial results of the period. |
Fundings in 2024
| • | In
the fourth quarter of 2024, the Company (i) contracted a loan of US$300 with Bank of Nova Scotia indexed to SOFR plus spread adjustments
and maturing in 2027, (ii) issued debentures of US$1 billion (R$6 billion) indexed to IPCA plus 6.38% to 6.43% per year, paid semi-annually,
and maturing in 2034, 2036 and 2039. The proceeds were received in November 2024 and will be used in infrastructure projects related with
the railway concessions, (iii) contracted a loan of US$300 with BBM Bank indexed to SOFR plus spread adjustments and maturing in 2029,
(iv) contracted a loan of US$250 with The Hongkong and Shanghai Banking Corporation indexed to SOFR plus spread adjustments and maturing
in 2028, and (v) contracted a loan of US$50 with DBS Bank indexed to SOFR plus spread adjustments and maturing in 2026. |
| • | In
the third quarter of 2024, the Company contracted loans of US$962 indexed to SOFR plus spread adjustments with maturities between 2027
and 2029. |
| • | In the second quarter of 2024,
the Company (i) issued bonds of US$1 billion with a coupon of 6.45% per year, payable semi-annually, and maturing in 2054 and (ii) contracted
a loan of US$90 with the Canadian Imperial Bank of Commerce (“CIBC”) indexed to SOFR plus spread adjustments and maturing
in 2024. |
| • | In the first quarter of 2024,
the Company contracted loans of US$870 indexed to SOFR plus spread adjustments with maturities between 2024 and 2035. |
Payments in 2024
| • | In the fourth quarter of 2024,
the Company settled the loan contracted with HSBC Bank, in the amount of US$250. |
| • | In the third quarter of 2024,
the Company (i) settled loans of US$599 and (ii) redeemed notes with maturity date in 2026, 2036 and 2039, in the total amount of US$970
and paid a premium of US$50, recorded as “Bond premium repurchase” in the financial results of the period. |
| • | In
the first quarter of 2024, the Company paid principal and interest of debentures, in the amount of US$46. |
Fundings in 2023
| • | In the third quarter
of 2023, the Company contracted a loan of US$150 with Citibank, indexed to SOFR with spread adjustments and maturing in 2028. |
| • | In the second quarter
of 2023, Vale issued notes of US$1,500 with a coupon of 6.125% per year, payable semi-annually, and maturing in 2033. |
| • | In the first quarter
of 2023, the Company contracted a loan of US$300 with the Industrial and Commercial Bank of China Limited, Panama Branch (“ICBC”)
indexed to SOFR with spread adjustments and maturing in 2028. |
Payments in 2023
| • | In the second quarter
of 2023, Vale repurchased notes with maturity date in 2026, 2036 and 2039, in the total amount of US$500 and paid a premium of US$22,
recorded as “financial expenses” in the income statement for the year period ended December 31, 2023. |
| • | In the first quarter
of 2023, the Company paid principal and interest of debentures, in the amount of US$24. |
|