Brazilian national development bank BNDES said it is preparing to launch a $1 billion investment fund with Export-Import Bank of China early next year to invest in projects in Brazil.
The Chinese lender has agreed to inject $600 million into the fund, while BNDES has pledged $400 million, the Brazilian bank said in a release late Thursday.
“This fund will be structured to finance capital market investments in Brazil,” said BNDES planning director Nelson Barbosa.
The fund will invest in debt securities and equity, focusing on sectors such as energy transition, infrastructure and artificial intelligence, among others.
Barbosa said the deal will create the first bilateral fund between a Brazilian and a Chinese financial institution.
STRONGER TIES
It comes amid an increase in Chinese foreign direct investment to Brazil, which jumped 113% to $4.2 billion in 2024, according to the Brazil-China Business Council. Bilateral trade amounted to $188 billion last year, according to Brazilian government data.
The initiative comes at a time when BNDES is supporting Brazilian exporters that have been hit by this year’s hike in US import tariffs.
“In today’s world where the West carries more risks, especially in the North,” Barbosa said during a seminar last week in an apparent reference to the US. “It is important to diversify.”
Speaking at the same event on relations between China and Latin America, Zhu Qingqiao, China’s ambassador to Brazil, said: “The international community, especially the Global South, cannot remain idle nor allow historical setbacks in the face of the hegemony and intimidation from a power.”