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Overview

Bank of China participates in $1.25 billion syndicated loan with Petrobras that is linked to sustainability commitments

Commitments (Constant USD, 2023)$393,716,304
Commitment Year•2022Country of Activity•BrazilDirect Recipient Country of Incorporation•BrazilSector•EnergyFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jul 8, 2022
Last repayment (originally scheduled)
Jul 7, 2027

Geospatial footprint

Map overview

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The project was a $1.25 billion syndicated loan agreement with Petróleo Brasileiro S.A., whose headquarters is in Rio de Janeiro, Brazil. More detailed locational information can be found at: https://www.openstreetmap.org/way/30988647#map=19/-22.90957/-43.17931

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Bank of Nova Scotia (Scotiabank)
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))

Receiving agencies

State-owned companies

  • Petróleo Brasileiro S.A. (Petrobras)

Implementing agencies

State-owned companies

  • Petróleo Brasileiro S.A. (Petrobras)

Loan description

Bank of China contribution to USD 1.25 billion syndicated loan with Petrobras that is linked to sustainability commitments

Interest type•UnknownMaturity•5 years

Narrative

Full Description

Project narrative

On July 8, 2022, Petróleo Brasileiro S.A. signed an $1.25 billion syndicated loan agreement with Bank of China, MUFG and The Bank of Nova Scotia. The loan carries a 5-year maturity (final maturity date: July 2027) and an unknown interest rate. The loan fully disbursed in July 2022. The loan agreement included incentives for the achievement of sustainability commitments, based on corporate performance indicators of Greenhouse Gas (GHG) Intensity in the Exploration and Production (E&P) and Refining segments, as well as of Methane Intensity in the E&P segment.

Staff comments

1. The size of Bank of China’s contribution to the loan syndicate is unknown. For the time being, AidData assume equal contributions ($416,666,666) from the three members of the loan syndicate. 2. This was reportedly the first time Petrobras had contracted financing associated with its corporate sustainability targets, which reinforced the company's focus on the decarbonization of its operations and expanded the liability management strategy by diversifying financing models, in line with the sustainability requirements that are increasingly present in the debt markets.