CEF aims to become biggest lender for oil, gas industry

Thursday, August 4, 2011

Federal bank Caixa Econômica Federal (CEF) is aiming to become the biggest lender to Brazil's oil and gas industry, local news agency Agência Estado reported.

CEF even wants to surpass national development bank BNDES as the sector's main financier at some point in the future, the agency quoted CEF executive Eugênia Regina de Melo as saying.

The bank is currently analyzing financing for 5bn reais (US$3.18bn) worth of oil and gas projects, and the first contract is slated to be signed in the next few weeks, she said.

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BNDES is also betting strongly on the sector's vast growth potential with a new credit line of 4bn reais for suppliers of oil and natural gas companies. The credit line will be in place until 2015.

CEF is Brazil's second largest public sector bank after federally controlled Banco do Brasil (BB).