Report: Vale considers issuing panda bonds for the first time, seeking to raise no more than 3.5 billion yuan.

Vale, the Brazilian iron ore giant, is considering issuing bonds in China's domestic market for the first time to raise up to 3.5 billion yuan, according to people familiar with the matter, joining a growing number of issuers seeking to diversify funding sources and lower financing costs. The company plans to hold a roadshow for the "panda bond" issuance during the week of Oct 19 and aims to begin marketing the deal as early as November. The bonds may have tenors of three, five or 10 years, with the final tenor to be determined based on investor feedback. The panda bonds will be issued by Vale Overseas Limited, a unit of Vale, and guaranteed by the parent company.