Petrobras secures $7bn China financing deal

May 20, 2015 12:00 AM

Brazil's state-run oil company Petrobras secured US$7bn in financing from China as part of a raft of economic cooperation deals struck by the countries.

Brazilian President Dilma Rousseff and Chinese premier Li Keqiang signed 35 agreements worth more than US$53bn during a ceremony in Brasília.

The accords include investments in the energy, mining, infrastructure and manufacturing sectors.

The Petrobras deal comprises a US$5bn commitment from the China Development Bank (CDB) and a US$2bn credit line from the Export-Import Bank of China (Cexim).

Tuesday's announcement comes less than two months after Petrobras secured a separate US$3.5bn loan from the CDB.

Analysts say the financing deals will ease pressure on Petrobras, whose ability to bankroll new projects has been limited by a corruption scandal and falling oil prices.

Rousseff said she had invited the Chinese government and businesses to participate in new refinery and shipyard projects.

A cooperation pact was also signed in the areas of renewable and nuclear energy, Brazil's leader said.

Meanwhile Brazilian development bank BNDES said it would loan US$1.3bn to Hainan Airlines after the Chinese company agreed to buy 40 commercial planes built by Brazil's Embraer.

Hainan will receive 10 of Embraer's E-195 aircraft during the first phase of the agreement in 2016 and 2017.

China is Brazil's top trading partner with bilateral trade totaling about US$80bn in 2014, according to the Brazilian government.

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