The syndicated loan facility, which includes an additional $250 million greenshoe option, marks PT Vale’s inaugural entry into the syndicated loan market and represents a significant milestone in strengthening the company’s financial resilience, supporting the development of strategic projects and advancing responsible mining practices in line with evolving global market expectations.

The facility was supported by a syndicate of 14 international banks and was 1.7 times oversubscribed, reflecting strong market confidence in PT Vale’s business fundamentals and sustainability-driven strategy.

As global investment in electrification and renewable energy accelerates, demand for nickel, an essential component in electric vehicle batteries and energy storage systems, continues to rise. According to projections by the International Energy Agency, global battery storage capacity is expected to increase fourteenfold to meet 2030 climate targets, while EV battery demand is projected to grow sevenfold over the same period.

In this context, PT Vale is strategically positioned as a relatively low-carbon nickel producer, supported by its integrated operations powered by three hydropower plants. The company is also undertaking enhancements to the capacity and reliability of its hydropower infrastructure to progressively support greater electrification across its operations.

The SLL facility has been structured in accordance with the company’s Sustainability-Linked Financing Framework, aligned with international best practices in sustainable finance. The facility incorporates two key performance indicators (KPIs): a measurable reduction in carbon emissions intensity and an increase in renewable energy consumption.

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Both KPIs have received a “strong” rating from an independent Second Party Opinion provider, reflecting their alignment with the Paris Agreement’s 1.5 degrees Celsius pathway, as referenced in independent assessments, as well as their contribution to Indonesia’s Nationally Determined Contribution targets. The assessment also confirms that the targets represent a meaningful improvement beyond business-as-usual performance.

The sustainability-linked syndicated loan represents a significant milestone for PT Vale and marks its formal entry into the syndicated loan market. The transaction aligns with the company’s robust growth trajectory, underpinned by disciplined and strategically managed project expansion across Indonesia.

President director and CEO of PT Vale, Bernardus Irmanto, said the facility marks an important step in the company’s journey in aligning its financing strategy with its decarbonization agenda and long-term growth ambitions.

“We remain committed to delivering high-quality nickel with a lower carbon footprint, while supporting Indonesia’s downstreaming agenda and contributing meaningfully to the global energy transition,” he said.

In terms of proceeds utilization, the facility will support the development of the company’s strategic projects. In 2026, approximately 50 percent of the funds will be allocated to the IGP Pomalaa project, around 30 percent to the IGP Morowali project, and approximately 20 percent to the IGP Sorowako Limonite project. In 2027, the facility will continue to support the advancement of these projects, as well as the company’s participation rights in joint venture developments.

As part of its commitment to creating shared value, PT Vale will also channel financial benefits arising from sustainability-linked margin adjustments into community development programs. This approach ensures that the benefits of achieving ESG targets extend beyond operational performance, contributing directly to improved community welfare in the company’s areas of operation.

This approach is further supported by the company’s banking partners, who recognize the importance of integrating sustainability into financing structures.

Harapman Kasan, wholesale banking director of UOB Indonesia, noted that as Southeast Asia’s nickel sector continues to evolve, the role of well-structured transition financing becomes increasingly critical.

“This transaction reflects our commitment to aligning financing structures with measurable sustainability objectives, while supporting Indonesia’s broader industrial and energy transition priorities.”

Mike Zhang, global head of metals & mining, institutional banking at DBS Bank, added that the metals and mining sector plays a pivotal role in enabling the energy transition and must demonstrate credible and measurable progress in sustainability.

Meanwhile, Ken Matsuo, president director of PT Bank Mizuho Indonesia, said the energy sector is a cornerstone of Indonesia’s economy, and the bank is pleased to support PT Vale’s inaugural syndicated loan.

“Despite market volatility, the strong participation and oversubscription underscore confidence in PT Vale’s business model. We see ESG integration in financing structures such as this as a critical enabler of a sustainable energy transition.”

Through this achievement, PT Vale further strengthens its position as a mining company that not only prioritizes business growth, but also upholds strong commitments to environmental, social, and governance (ESG) principles, in line with its vision of supporting a cleaner and more sustainable energy future.

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