Narrative
Full Description
Project narrative
On August 22, 2023, China Development Bank (CDB) and Brazil's National Bank for Economic and Social Development (BNDES) signed a $500 million loan agreement. The loan carries a 2.8-year maturity, a 2.8-year grace period, and an unknown interest rate. The loan was fully disbursed in 2023. The borrower was expected to use the loan proceeds to on-lend for energy, green economy, high technology, infrastructure, agriculture and epidemic prevention projects and to promote bilateral trade between Brazil and China. At the time that the loan agreement was signed, the Director of Capital Markets and Sustainable Finance at BNDES, Natália Dias, stated that ‘this US$500 million operation is just the first stage of a broader agreement, which provides for a second operation of up to US$800 million'. The second $800 million loan agreement between CDB and BNDES was signed on June 7, 2024 (see Record ID #107305).
Staff comments
1. The National Bank for Economic and Social Development is a development bank structured as a federal public company associated with the Ministry of the Economy of Brazil. 2. The second $800 million loan agreement between CDB and BNDES was signed on June 7, 2024 (see Record ID #107305). 3. The loan's maturity and grace period are drawn from the World Bank's Debtor Reporting System (DRS). See https://www.dropbox.com/scl/fi/3gmk0ktgl7wsmu9zz1sjf/Borrowing-terms-of-official-sector-loans-from-China-to-Brazil-DRS-January-2024-extraction.xlsx?rlkey=92sq9hpzb7cct4ezn59tcd89u&dl=0 4. Machado Meyer Advogados was the legal adviser to CDB.