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:

You May Also Like

Rare blue macaws can be seen at the San Francisco ranch

Voyeurs of the World Discover Brazil’s Pantanal

Old pond. / Frog jumps in. / Water-sound. The seventeenth century Japanese haiku poem ...

Brazil’s Lula: At the UN, decrying US and EU’s hypocrisy

In his 15-minute address to the UN General Assembly, Brazilian President Luiz Inácio Lula ...

Sugarcane Fields in Brazil Have Become Killing Fields

As countries look to reduce toxic emissions from cars, many are promoting a fuel ...

Brazilian Congressman Fears Secret Deal Will Let Deputies Go Unpunished

The president of the Chamber of Deputies, Aldo Rebelo (PCdoB – Communist Party of ...

Minas Maintains Second Place Among Brazil’s Biggest Exporters

The southeastern Brazilian state of Minas Gerais exported in excess of US$ 1 billion ...

Brazil’s Election Board Wants Cheaper Election Campaigns

The president of Brazil’s Federal Election Board (TSE), Minister Carlos Velloso, declared at the ...

Brazil Intent on Becoming a Major Competitor on World Tourism

A plan to increase the competitiveness of Brazilian tourism on the world market was ...

Volkswagen's Gol Totalflex made for the Brazilian market

Being an Ethanol Pioneer Doesn’t Exempt Brazil from Eco-Responsibility

For 30 years Brazil has been using ethanol as fuel. What is been referred ...

Brazil Wins Another Round Against EU Trade Barriers

Brazil gained another victory in its war against protectionist barriers erected by the European ...

The Owners of Brazil

Rich and powerful to the point of arrogance, when it cannot beat the competition, ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]
SHOW FULL COLUMNS FROM `wp_wfHits`