Brazilian iron ore giant Vale is exploring an entry into China's bond market as soon as this year, which would mark its first-ever panda bond issuance and follow a similar move planned by the Brazilian government. China stands as the primary buyer of Vale's iron ore, contributing to roughly half of the company's total revenue.

Chief Financial Officer Marcelo Bacci described Vale's foray into the Chinese bond market as a "natural step." "We are preparing for this," Bacci said in an interview on Wednesday, adding that the issuance could still take place in 2026. In parallel, the Brazilian government intends to make its debut panda bond sale as early as this year, aiming to raise approximately 10 billion yuan ($1.48 billion) to diversify funding sources and reduce reliance on dollar-denominated debt.

Bacci noted that China's onshore bond market remains in a developmental phase for international issuers, with individual offerings typically ranging from $400 million to $500 million and carrying relatively shorter tenors.