This excerpt taken from the PBR 6-K filed Nov 4, 2009.
Execution of loan agreement with the China Development Bank Corporation
Rio de Janeiro, November 4 2009 PETRÓLEO BRASILEIRO S/A - PETROBRAS, announces that it signed yesterday the final agreements with the China Development Bank Corporation (CBD), regarding the US$10 billion loan, with a 10-year tenor, which had been under negotiation since May 2009, when the commitment were announced by the Company.
The proceeds will be used to fund the Company's 2009-2013 Business Plan and will be received in diverse tranches, according withdrawal notices to be issued by the Petrobras in the upcoming months.
According to Petrobras´ CFO Almir Barbassa, who represented Petrobras in the signature ceremony, "this funding is relevant not only due to the amounts involved, but also because it represents a new phase of relationship between developing countries."
Simultaneously with the first withdrawal notice to be issued by Petrobras in the CDB loan, it will be started the long term exports agreement between Petrobras and Unipec Asia, a whole owned subsidiary of Sinopec. The agreement calls for an exports volume of 150,000 barrels of oil per day during the first year and 200,000 barrels of oil per day in the subsequent nine years. Although the CDB loan is a trigger to the exports agreement, the agreements are independent and do not represent a securitization structure.
This document may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act) that merely reflect the expectations of the Companys management. Such terms as anticipate, believe, expect, forecast, intend, plan, project, seek, should, along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: November 4, 2009
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act) that are not based on historical facts and are not assurances of future results. These forward-looking statements are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.