Related News

Japan Bank for International Cooperation (JBIC) has signed an agreement for a dual currency export credit line totalling Y2bn and US$20mn, respectively, with Uni de Bancos Brasileiros SA (Unibanco), a major commercial bank in Brazil.

Previously, JBIC provided a yen-denominated credit line for Unibanco in 1998. This dual currency facility, denominated in yen and US dollar, enables Brazilian buyers to avoid exchange rate risk in purchasing equipment from Japan, thereby increasing the export competitiveness of Japanese firms. In addition, since Unibanco has an extensive domestic network, it can channel funds to a broad base of small and medium-sized buyers interested in purchasing equipment from Japanese firms. This will contribute to increasing Japanese exports.

As the confidence of international financial markets in Brazil, where the currency remains relatively stable, has been regained, Japanese firms have been involved in an increasing number of export transaction projects with Brazil. To meet financial demand arising from such activities, JBIC provided a dual currency export credit line totalling Y2bn and US$20mn to Bradesco last December and a credit line totalling to Y5bn and US$20mn to Banco do Brasil in February. With this credit line for Unibanco, total export credit facilities offered by JBIC to these three major Brazilian banks reached an aggregate amount of Y9bn and US$60mn (for a combined total of US$140mn). These credit lines offer Brazilian importers more diverse financing means for purchasing equipment from Japan.

JBIC will support Japanese firms in expanding their business opportunities in as well as their exports to Brazil by drawing on ties it has formed with these Brazilian banks through export credit lines.