Petrobras Pens $1 Billion Loan Deal with Japanese Bank

On Friday, October 12, Petrobras signed a loan agreement for up to US$ 1 billion with the Japan Bank for International Cooperation – JBIC, in Tokyo, Japan.

The JBIC will be responsible for lending up to US$ 600 million of the total amount and for providing partial guarantees for the remaining US$ 400 million, to be lent by Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU).

The funds will be used for energy efficiency projects, which will enable the Company to lower its greenhouse gas emissions. The energy and steam co-generation unit of the Rio de Janeiro Petrochemical Complex (Comperj) and the gas flare burning reduction program of the Campos Basin (RJ) were the two projects chosen. This is the largest financing project conducted by JBIC in the energy efficiency category, and the first large-scale financing agreement executed by Petrobras for this type of project.

This initiative allows Petrobras to meet its need to raise resources as set forth in the 2012-2016 Business Plan and to align its growth with sustainable development, mitigating the impact of the company’s activities on the environment, all in a single credit operation.

A Memorandum of Understanding was also signed on the same date by these two institutions. Its purpose is to establish a strategic partnership between Petrobras and JBIC to identify future business opportunities.

Petrobras and JBIC have established an ongoing relationship of close cooperation over the course of many years, and have already implemented a series of operations together. Both the financing operation and the Memorandum of Understanding will serve to further strengthen this relationship.

Source: offshoreenergytoday.com