Petrobras to invest $824 million from Japanese banks in new refinery

Brazil's National Oil Company Petrobras announced that it made loans from syndicate of three Japanese banks, for the value of ¥75 billion (around $824 million), for investment in the Henrique Lage Refinery (REFAP), in Sao Jose dos Campos in southeastern Sao Paulo state.

Petrobras said that the financing was procured from banks -Sumitomo Mitsui Banking Corporation (SMBC), Mizuho Corporate Bank (Mizuho) and the Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) and with a repayment facility of ten years.

The loan signed has insurance from the Japanese export promotion agency Nippon Export and Investment Insurance (NEXI).

The loan will finance the upgrade of Henrique Lage Refinery (REFAP) which is underway, in order to increase its heavy oil processing capacity, improve the quality of its diesel fuel and gasoline, and optimize the refinery's product mix, Petrobras said.

"The financing is part of the company's program for fund collection to finance part of its investment projects with the support of traditionally-used long-term financing sources," according to the statement.

The Henrique Lage, the company's fourth-largest refinery, processes 251,000 barrels of oil a day. Main products are gasoline, diesel fuel, jet fuel, LPG, asphalt and sulfur according to the Petrobras Web site.