Vale SA will pay additional interest to the holders of the mandatorily convertible notes due June 15, 2012, issued by its wholly owned subsidiary, Vale Capital II. The Rio de Janeiro-based mining giant also said its board of directors had approved payment of the first installment of the 2011 dividend to shareholders, amounting to $2 billion, or about 38 cents per outstanding common or preferred share.
Vale’s executive board proposal for the dividend to be paid to shareholders in 2011 established a minimum amount for the year of $4 billion, equivalent to about 77 cents per share, to be paid in two installments, on April 29 and Oct. 31.
The additional interest to be paid on the notes, Vale said, would be equal to the U.S. dollar equivalent of 1.627851 reais and 1.882788 reais converted at the April 29 exchange rate.
The notes began trading ex-dividend on the New York Stock Exchange on April 14. Investors holding notes through an account with the Depository Trust Co. (DTC) will be paid in accordance with the procedures of the DTC and the investors’ custodian.