Brazil’s energy giant Petrobras has signed two credit notes and a memorandum of understanding (MoU) with the Banco do Brasil (BB) aiming to fund and promote initiatives related to sustainability and energy transition.
The combined value of the two credit notes maturing in 2032 is R$6.5 billion, or around $1.1 billion. The duo also announced the renewal of the revolving credit facility worth R$2 billion, or approximately $350 million, originally maturing in 2026, which has now been extended to 2030.
“This initiative reinforces our commitment to the energy transition and the preservation of biodiversity, contributing to the country’s development in a responsible manner and in line with global sustainability challenges,” highlighted Petrobras CEO Magda Chambriard .
The partners committed to long-term strategic planning and the application of the resources provided to promote biodiversity, biofuels, renewable energy, efficiency, and energy transition. An external consultancy firm is set to evaluate compliance with these commitments every year.
“We work not only in granting sustainable credit, but also with consulting and intelligence transfer that allows our clients to advance projects that benefit companies, people and the environment,” noted BB President Tarciana Medeiros .
“In this sense, it is crucial to have Petrobras as a relevant partner in this quest, combining pioneering and innovation with social, environmental and climate commitment, without losing sight of our mission to contribute to the development of our country.”
Banco do Brasil claims to be net-zero in its direct carbon emissions and is committed to achieving the same status in its financed portfolio operations by 2050. Additionally, it seeks to expand its operations in the carbon credit market, focusing on Brazilian biomes.
These initiatives are said to strengthen the country’s commitment to the United Nations’ sustainable development goals (SDGs) and the international climate agenda, in line with the bank’s 2030 Commitments for a More Sustainable World.
“The contracting of the credit line with sustainability commitments reinforces Petrobras’ commitment to socio-environmental responsibility, preparing the company for the future of the energy transition not only in our projects and operations, but also in our financial practices,” underlined Petrobras’ Financial and Investor Relations Director, Fernando Melgarejo .
Petrobras and Banco do Brasil also signed a memorandum of understanding (MoU) aimed at technical cooperation in the development of projects related to decarbonization and biodiversity preservation.
The MoU reinforces projects linked to the ‘green finance’ concept, focusing on sustainability and actions to prevent climate change. The deal is also expected to encourage the joint identification and assessment of projects, financial structures, and financing in this area.
This week, the Brazilian giant disclosed having signed a long-term liquefied natural gas (LNG) sales and purchase agreement (SPA) with Centrica. Under the deal, Petrobras is slated to purchase 0.8 million tons per annum (mtpa) of LNG for 15 years starting in 2027.
Earlier this month, the energy major found oil in a well in the western region of the Búzios field in the pre-salt Santos Basin offshore Brazil and brought online the FPSO Almirante Tamandaré working in the same field.