September 9, 2016
It was a brief moment of good news for Brazil’s national oil company Petrobras. In February, as it reeled from a combination of low oil prices and the impact of the rolling Lava Jato corruption scandal, it was able to point to a substantial potential influx of new funding.
On 26 February, the then-chief executive officer, Aldemir Bendine, and the president of the China Development Bank (CDB), signed a term sheet for a $10 billion loan in Rio de Janeiro. At the same time, the two also agreed for Petrobras to supply oil to Chinese consumers. This built on a cooperation agreement that Petrobras and China had signed during a visit by China’s premier, Li Keqiang, to Brazil in May 2015.
In one se
China’s policy lenders have been key to projecting the country’s economic influence in Latin America even as it pursues a renewed strategic focus on Asia. By Tom Nelthorpe