The Japan Bank for International Cooperation (JBIC) has signed a loan agreement and memorandums of understanding (MoU) with Brazilian government institutions and energy and natural resources companies.
The loan agreement totalling US$500mn is with Banco National de Desenvolvimento Econmico e Social, whose mission is to advance national economic and social development. This is an untied two-step loan intended to finance domestic infrastructure development projects as well as capital investments made by Brazilian exporters.
JBIC has also signed a MoU on the Clean Development Mechanism (CDM) with the ministry of science and technology. The aim is to promote CDM projects and support Japanese firms in acquiring emission credits generated from such projects.
Furthermore, a MoU has been signed with Petrobras, which plays a central role in implementing Brazil’s national energy policy, with the aim of securing stable access to energy resources for Japan through further strengthening mutual ties. Separately, JBIC signed a MoU with Petrobras, Mitsui & Co, Itochu, Sumitomo Mitsui Banking Corporation and the Nippon Export and Investment Insurance, regarding possible JBIC financing for the Revap refinery modernisation project, one of the country’s major refineries.
JBIC has also signed a MoU with Companhia Vale de Rio Doce (CVRD), the largest iron ore supplier in the world and the source of 20% of Japan’s iron ore imports. The MoU aims to strengthen ties in regards to CVRD’s logistics infrastructure programme (renovation and expansion of railways and port facilities) with the aim of increasing the company’s capacity to supply iron ore.