Business / Economy

Chinese financial institutions make strides in Brazil

(Xinhua) Updated: 2015-06-16 14:22

RIO DE JANEIRO - Most of China's big financial institutions have entered the Brazilian market and achieved rapid development there thanks to expanding cooperation between the two countries.

China Development Bank (CDB) has granted Brazil's oil and gas giant Petrobras a loan of $1.5 billion, the Chinese bank told Xinhua on Monday.

The loan is part of a long-term financing agreement between Petrobras and the CDB, signed during Chinese Premier Li Keqiang's visit to Brazil in May.

In addition to the financing deal with Petrobras, the CDB says it has also signed cooperation deals with a Brazilian state government and several agribusiness companies in the country. Under these deals the CDB will have to provide a total of 6 billion dollars in fund.

The CDB started doing business in Brazil in 2006 and has funded 28 projects by the end of March this year, covering energy, electricity, infrastructure, agriculture, equipment manufacturing and telecommunications.

The CDB promised $39.5 billion of loans to these projects and has lent $23.7 billion so far, according to the company.

Some other Chinese financial institutions are also active players in Brazil.

The Export-Import Bank of China recently inked agreements worth $6.65 billion with four Brazilian companies for technology transfer from China.

The deals will help Brazilian miner Vale and energy giant Petrobras to import advanced ships and ocean engineering equipment, and provide financial support to Chinese enterprises to buy 40 E-190 jets from Brazilian aerospace conglomerate Embraer, said the bank.

The bank also made a deal with the Brazilian Development Bank to facilitate investment from China.

China's Bank of Communications also announced during Premier Li's visit to Brazil that it has reached agreement with the Brazilian bank BBM to buy 80 percent of its stake.

"This acquisition will bridge the economic and financial cooperation between Brazil and China, and boost bilateral investment and trade," Niu Ximing, president of the bank, told Xinhua.

Insurance companies from China also see their businesses thrive in Brazil.

China Export and Credit Insurance Corporation (SINOSURE) has reached a long-term partnership agreement with Brazil's largest credit report company Serasa Experian. And the deal will enhance SINOSURE's underwriting capacity in Latin America so as to better serve Chinese companies in this region.

Brazil is China's largest trade partner in the region, with two-way trade at $86.67 billion in 2014. China's investment in Brazil reached $18.94 billion by the end of 2014.

As the two countries agreed to deepen cooperation, particularly in production capacity and equipment manufacturing, Chinese financial institutions are facing great opportunities to achieve full-scale development in Brazil, experts said.

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