Brazil, China banks sign R9bn green investment deal

Brazil's Bndes development bank has reached an agreement with the China Development Bank (CDB) and the Asian Infrastructure Investment Bank (AIIB) to finance up to R9.1bn ($1.72bn) in renewable projects in Brazil.

The agreement with the CDB is for up to $800mn over a 10-year period to finance green power, manufacturing, agriculture, mining and other renewable projects. The two banks are also evaluating a ¥5bn ($690mn) short-term line of credit to help the Bndes expand financing.

The line of credit is part of recent efforts by the Brazilian government to expand international trade and financing beyond the US dollar.

Bndes and AIIB agreed to expand cooperation in sustainable development, with the goal of investing $250mn in sectors including green energy and sustainable urban transport. AIIB has also agreed to support efforts to reconstruct areas of Rio Grande do Sul state that were damaged by record floods in late April and early May.

The financing was announced during a Brazilian trade mission to China, led by vice-president Geraldo Alckmin, who is also the trade minister. China is Brazil's largest trade partner, accounting for over 30pc of Brazilian export revenues in 2023.

Petrobras reinforces China ties

Brazil's state-controlled Petrobras and China's export credit agency Sinosure also signed a new memorandum of understanding to study opportunities for investment and cooperation in low-carbon initiatives and green finance.

The agreement also vies to strengthen Petrobras' supply chain, as well as increase and facilitate trades between Petrobras and Chinese companies, the Brazilian firm said today.