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BNDES' partnership with China's CDB not only diversifies its funding sources such as oil, gas and energy, but signals the bank's commitment to leading the transition to a greener and more sustainable economy, while continuing to drive economic progress and society in Brazil.
In an announcement of great impact for the Brazilian economic scenario, the National Bank for Economic and Social Development (BNDES) announced last Wednesday, (23/08), that it had signed an external loan agreement in the expressive amount of US$ 500 millions. The agreement was signed with the renowned China Development Bank (CDB), a financial institution that promotes China. Among the sectors benefiting from this investment, we have: oil and gas, mining, agriculture, energy transition and others.
Strategic partnership will promote investment and bilateral trade between Brazil and China
This financial milestone was formalized during the 15th BRICS Summit, held on Tuesday in South Africa.
The BRICS, which brings together Brazil, Russia, India, China and South Africa, witnessed the signing of this agreement, with significant implications for the Brazilian economy and for the country's international relations.
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The external loan, characterized by a repayment period of up to three years, assumes a strategic role in the context of the investments planned by the BNDES.
These investments will be channeled into financing operations along established lines, with a view to benefiting the bank's end customers, which include both private companies and public entities.
The president of BNDES, Aloizio Mercadante, highlighted the importance of this partnership with the CDB, highlighting that this initiative strengthens the diversification of BNDES funding sources, which, in turn, will potentially positively impact the generation of jobs and income in Brazil.
He emphasized that funding from international organizations plays a crucial role in resuming the bank's disbursements and, therefore, the effort to expand these operations is remarkable.
The areas of application of resources from this external loan are diverse and wide-ranging.
Including strategic sectors such as infrastructure, energy, manufacturing, oil and gas, agriculture, mining, sanitation.
In addition to issues of current relevance such as the ESG agenda, climate change, green development, digital economy and cutting-edge technology.
Luciana Costa, by emphasizing the benefited segments, highlighted Brazil's aspiration to become a green power.
And he stressed that the collaboration between the BNDES and the CDB will make a significant contribution to sustainable development, especially towards a fair energy transition.
Innovative agreement is just the first step of a broader collaboration between BNDES and CDB, focusing on green financing and energy transition
Natália Dias, director of Capital Markets and Sustainable Finance at BNDES, emphasized the importance of this new contract as a milestone in the relationship between the two financial institutions.
The agile process from negotiation to closing the contract demonstrates the mutual interest and cooperation between the BNDES and the CDB.
Furthermore, this US$500 million operation is only the first stage of a more comprehensive agreement, which includes a second potential operation of up to US$800 million.
The director also highlighted the fundamental significance of this agreement for BNDES financing.
He commented on the growing openness to collaboration with multilateral organizations, which are becoming an increasingly crucial source of funds for the bank.
Especially due to long-term credit lines, with competitive costs and aligned with strategic sectors, such as energy transition and infrastructure.
This agreement between the BNDES and the CDB is a tangible testament to the global economic opportunities, as well as the confidence placed in Brazil's growth and development prospects.
The reflections of this partnership have the potential to echo in the identified sectors, impacting the economy, jobs and the business environment more broadly.
The BNDES' strategic approach to diversifying its funding sources is a concrete demonstration of its resilience and pursuit of sustainable prosperity.
