Brazil's Petrobras, China EximBank ink $1bln credit facility

GMT 01:42 2016 Wednesday ,11 May

Arab Today, arab today Brazil's Petrobras, China EximBank ink $1bln credit facility

Export-Import Bank of China
Rio de Janeiro - XINHUA

Brazil's state oil firm Petrobras said Monday it has signed a preliminary deal with the Export-Import Bank of China (China EximBank) on a 1-billion-U.S. dollar loan.

"Petrobras has signed a term sheet with China EximBank containing the main terms and conditions" for the loan, the company said in a press release, adding that the final loan deal is being negotiated.

The financing "is related to supply contracts for equipment and goods Petrobras has already signed with Chinese companies," Petrobras said.

It is earmarked for projects in Petrobras' 2015-2019 business and management plan, and is part of its financial strategy to diversify its sources of funding, the company added.

Over the past two years, Petrobras has plunged into a financial and credibility crisis stemming from revelations that top company executives were involved in a wide-ranging corruption scheme.

The scheme saw executives, government officials and business owners, mainly in the construction sector, rig the distribution of contracts and inflate costs, with profits going into private bank accounts.

The revelations dealt a blow to Petrobras' finances and ability to secure financing in international markets.

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