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

Presidents Kirchner, Chavez and Lula

Brazil, Venezuela and Neighbors Create Development Bank

The Finance and Economy ministers from Argentina, Brazil, Bolivia, Ecuador, Paraguay and Venezuela decided ...

Want Democracy? Fight Misery, Brazil Tells the U.S

When the U.S. Secretary of State, Condoleezza Rice, brought to the OAS meeting that ...

Brazil: The Shame of Being the World’s 7th Largest Economy

In the 19th century, Victor Hugo refused to shake hands with Pedro II, the ...

Avant-garde Enigma

Despite the moralistic streak at Globo, the network is not abandoning its lewd characters. ...

Argentina Rescues Cruise Liner Filled with Brazilians

A cruise vessel with 1.612 passengers, mostly from Brazil, finally managed Thursday early afternoon ...

A Casualty of Brazil’s Defeat, Roberto Carlos, 33, Announces Retirement

Brazil defender Roberto Carlos has announced he is retiring from international football, after his ...

Brazil’s Petrobras Exports Environmentally Responsible Culture

Petrobras University, a teaching institution established by the Brazilian oil company to train its ...

Brazil Goes for a Ride on Wall Street’s Bullish Train and Dollar Falls

The São Paulo Stock Exchange (Bovespa) started October with a boom, closing at 62.340 ...

Brazil Authorizes Power Bill Increases of Up to 16%

The electricity sector regulatory agency (Aneel, Agência Nacional de Energia Elétrica) has completed a ...

Brazilian Committee’s Approval of GM Corn Draws Criticism

Brazil's biosafety committee has approved two sets of guidelines governing the use of genetically ...

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