Industrial and Commercial Bank of China to fund $50billion in Brazil

 

The Industrial & Commercial Bank of China plans to start a fund of up to $50 billion, to be managed by Brazil’s state-owned bank Caixa Economica Federal, for investing in infrastructure projects in the Brazil.

Details of the new fund will be announced in the next week, during the visit of Chinese Prime Minister Li Keqiang to Brazil.

A Caixa spokeswoman declined to comment, while ICBC’s press department wasn’t immediately available to comment.

The fund will be used to finance projects mainly in the railroad, energy and agricultural sectors. China is Brazil’s biggest trade partner, mainly due to the Asian country’s strong appetite for Brazilian commodities such as soy  and Iron ore.

The fund would increase China’ s involvement in the Brazilian economy.

Last month, the China Development Bank opened a $3.5 billion line of credit for Petroleo Brasileiro SA, or Petrobras, as the oil company struggled to get its accounts cleared by auditors amid a massive corruption investigation.