• Categories
  • Archives

Brazil’s Petrobras Gets US$ 800-Million, 10-Year Loan from 3 Japanese Banks

Brazilian Petrobras's Revap Brazilian government controlled oil and gas multinational Petrobras announced this Friday, December 12, that it made loans from three Japanese banks, for the value of 75 billion yen (around US$ 824 million), for investment in the Henrique Lage Refinery (Revap) in São José dos Campos, in the interior of the state of São Paulo.

According to a press statement by the company, the program is being developed to increase the heavy oil processing capacity, improve the quality of diesel and gasoline and diversify the variety of products processed.

In the press statement, Petrobras informed that the financing was granted by banks Sumitomo Mitsui Banking Corporation (SMBC), Mizuho Corporate Bank (Mizuho) and the Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) and the payment span is ten years.

"The financing is part of the company's program for fund collection to finance part of its investment projects with the support of traditionally-used long-term financing sources," according to the statement.

Congress Doubts

At the end of last month, the minister of Mines and Energy of Brazil, Edison Lobão, told reporters that a 2 billion Brazilian real (US$ 861 million) loan made by Petrobras from the Federal Savings Bank (CEF) was just a "regular loan" to cover operating costs.

"This is not a problem for any company. It has already been done many times. Petrobras has already made loans abroad at other moments, and in Brazil too. Petrobras is just repeating something that it has always done," stated the minister while addressing the Senate regarding infrastructure.

Brazilian senator Tasso Jereissati spoke about the loan in a plenary session in Congress. According to him, the company has "serious cash flow problems. The organization's monthly report to the Securities and Exchange Commission (SEC) shows that the loan was made on October 31 and the objective is to "strengthen the turning capital".

According to Jereissati, the conditions negotiated by Petrobras with the CEF were as follows: grace period of 180 days for payment of the loan and single amortization at the end of the event; interest rate of 104% of the CDI Over; incidence of the financial transactions tax (IOF) and amortization and full payment of the loan made.

ABr

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazilian Men Come on Top as the World’s Most Promiscuous

The September issue of British magazine Men’s Health decided to find the answer for ...

Brazil Keeps Import Tariff on Ethanol at Least Until July

As announced by the Brazilian minister of Agriculture, Reinhold Stephanes, the reduction of the ...

China and Brazil Reach Agreement on Soy Oil

The Chinese government guaranteed that it will not reject shipments of crude soy oil ...

Opposition Keeps Going to Court with Charges Lula Is Illegally Campaigning

Brazilian opposition parties (PSDB, DEM and PPS) have filed an appeal at the Superior ...

Brazilian Market Betting on Deep Cut in Interest Rates

Latin American stocks fell, with Brazilian shares falling on profit taking following recent gains ...

Maniac for Education

Listening to Brazil’s new Education Minister: I have always dreamed of becoming the Minister ...

Brazil Declares 7 Days of Mourning for Pope

The Brazilian people, “the largest Catholic country in the world”, is profoundly saddened by ...

Fishing for Letters, a Brazilian Program to Teach Fishermen How to Read

A mutual cooperation agreement signed today by Brazil’s Minister of Education, Fernando Haddad, and ...

Goodbye Song

American musician Stan Getz once asked Brazilian conductor Júlio Medaglia, "Why doesn’t Baden Powell ...

Brazil Movies Are Having a Rebirth. You Can Check at a Theater Near You

Film production in Brazil has jumped to over 70 feature films a year and ...