Brazil’s state-controlled oil company Petrobras is seeking a $1bn loan from the Export-Import Bank of China earlier than originally planned, on surging debt service costs amid plunging oil prices.
The loan was originally planned for 2017, but rising debt service costs and falling revenues due to softer oil prices compelled the company to avail the loan earlier than planned.
The company is engaged in negotiations with the Chinese lender after signing a term sheet on Monday.
The proceeds from the loan would be utilised towards its equipment and service contracts from Chinese suppliers.
Previously, the company had secured a $10bn loan from China Development Bank Corp. as part of a deal to supply crude to the Asian country.