China and Brazil will join forces to create a $1 billion (4.205 billion ringgit) investment fund.
According to a statement cited by Bloomberg on the 2nd, Brazil's National Bank for Economic and Social Development and the Export-Import Bank of China have agreed to jointly establish a $1 billion fund for investment in areas such as energy transition, infrastructure, minerals, agriculture, and artificial intelligence. The Export-Import Bank of China is a state policy bank.
According to the statement, Brazil's National Bank for Economic and Social Development will contribute $400 million (1.682 billion ringgit), while the Export-Import Bank of China will invest $600 million (2.523 billion ringgit). This new investment fund will launch operations next year, investing in Brazilian bonds and equities.
The National Bank for Economic and Social Development of Brazil and the Export-Import Bank of China have signed a term sheet and a letter of intent to jointly establish the aforementioned fund.
Barbosa, the planning director of Brazil's National Bank for Economic and Social Development, revealed that this is the first time financial institutions from Brazil and China have jointly created a fund that invests in Brazil using the local currency, the real.