This excerpt taken from the PBR 6-K filed Aug 19, 2005.
Strategic Partnership Agreement with JBIC (Japan Bank for International Cooperation)
This agreement establishes a strategic partnership to consolidate the relationship between the two companies and to identify and establish areas of cooperation and strengthen the mechanisms to monitor the relationship between the two companies.
It formalizes the important contribution of financing from JBIC for PETROBRAS projects in the areas of drilling, production and refining of natural gas.
Agreement for REVAP Modernization.
For the Project for Modernization of refinery Henrique Lage REVAP, establishing the terms and the conditions of the financing of up to US$ 900 million, involving construction of a Cracking Unit and another for Diesel hydro-treatment. The works will start in the third 2005 quarter, with start up of operations scheduled for the first 2008 quarter.
The parties signing this agreement were Japan Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance (NEXI), Sumitomo Mitsui Banking Corporation (SMBC), Mitsui Co & Ltd., Itochu Corporation and PETROBRAS.
The terms and conditions of the financing establish that the debt is to be paid within 15 years, with grace period of three years and a half. The US$ 900 million will arise from the following sources: JBIC (US$ 486 million); a pool of banks led by SMBC and with insurance from NEXI (US$ 324 million) and Mitsui and Itochu (US$ 90 million).