A ¥88.2bn-equivalent syndicated loan has been signed by a syndicate of 11 banks, and backed by a guarantee from the Japan Bank for International Cooperation (JBIC), in support of the development of an urban railway and subway project in the state in Sao Paulo in Brazil.

The facility has been extended to the government of the state of Sao Paulo. The funds will be used to finance capital investment in the transport scheme, including the procurement of trains and associated signalling systems.

The aim of the project is to improve the efficiency of freight transportation, and therefore boost the distribution of goods for locally operating Japanese affiliates. The Sao Paulo metropolitan area faces chronic traffic jams and air pollution, and is an area prioritised by the Brazilian government to traffic infrastructure investment.

The syndicate of banks raising the funds comprises: SMBC, Mizuho Corporate Bank, the Bank of Tokyo-Mitsubishi UFJ, Depfa Bank (Tokyo branches), BNP Parivas, Calyon, Société Générale, BBVA, HSBC, Shinsei Bank and Sumitomo Trust and Banking Company.