China Development Bank plans o open office in Brazil

2 July 2009

Rio de Janeiro, Brazil, 2 July – The China Development Bank plans to open an office in Brazil in 2010 in order to invest in ports, foundries and energy, the governor of the State of Rio de Janeiro, Sérgio Cabral said in a statement.

The governor also said that the bank was expected o set up the office in Rio de Janeiro, the city that is homes to the headquarters of oil giant Petrobras and mining giant Vale, the world’s largest producer of iron ore.

The bank, which operates as a financial institution in China for public works projects, agreed in May to provide a loan of US$10 billion to Petrobras.

Profit at the bank, which is 51.3 percent owned by the Finance Ministry and the remainder by Central Huijing Investment, a unit of China’s sovereign fund, fell 28 percent in 2008 due to unpaid debts as a result of the economic downturn.

This week the financial director of Petrobras, Almir Barbassa said that the China Development Bank planned to provide more loans so long as Petrobras agreed to acquire more Chinese products.

In Brazil the China Development Bank showed interest in investing in projects related to the Football World Cup in 2014 and Rio de Janeiro’s bid for the 2016 Olympics, said Cabral on a visit to China.

The governor met Thursday in Shanghai with officials from the Chery car factory and then travelled on to Shenzhen, which he will leave for Hong Kong later Thursday. (macauhub)