Loading grant details…
China Development Bank provides USD 12 million loan to XCMG Brazil
| Funder | China Development Bank (CDB) |
|---|---|
| Recipient Organization | XCMG Brasil Industria Ltda (XCMG Brazil) |
| Country | Brazil |
| Start Date | Jun 01, 2018 |
| End Date | Dec 05, 2026 |
| Duration | 3,109 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 60501 |
Grant Description
China Development Bank provides USD 12 million loan to XCMG Brazil In June 2018, China Development Bank (CDB) provided a USD 12 million loan to XCMG Brasil Industria Ltda., the Brazilian branch of the Chinese state-owned construction equipment company, Xuzhou Construction Machinery Group (XCMG). The loan's borrowing terms and purpose are unclear.
The Brazil Central Bank lists the loan registration (ID TA832666) as complete. Also in June 2018, CDB provided a separate USD 10 million loan to XCMG Brazil (see Record ID#60507).
On October 23, 2019, the Central Bank of Brazil officially authorized XCMG Group to establish XCMG Brazil Bank (XCMG Banco Brasil).
The purpose of this bank was to compete with BNDES in the financing and supplying of industrial and agricultural equipment.
They are the first financial institution with 100% foreign capital to obtain authorization from the Central Bank to operate in Brazil.
On July 1, 2020, XCMG Bank officially started operations and CDB's Chief Representative of the Rio office attended the ceremony. It is unclear whether the 2018 CDB loan was used as seed capital for establishing this bank.
XCMG Banco offers direct consumer credit, working capital and prepayment receivables, bank deposit certificates, foreign exchange, hedge operations, treasury and investment products, and credit lines for machinery and equipment financing. In November 2020, they closed their first loan agreement worth BRL 19 million with Zocar Rio Caminhões.
Staff Comments
No sources explicitly state that the purpose of this CDB loan was to serve as seed capital for XCMG Group to help open up their new financial arm, XCMG Banco. However, this may be reasonable to assume based on the timeline.
Sources & References
- BrazilCentralBank_September102018
- Enquanto o Brasil esvazia seu BNDES, a China cria um BNDES dela aqui no Brasil
- XCMG Bank conclui negociação de R$ 19 mi
- Banco internacional expande negócios em Minas
- 中国制造业第一家！徐工巴西银行开业 助力中巴经贸合作纵深发展 原文網址：https://kknews.cc/finance/e5vvqvy.html
- 高质量发展新篇章!徐工与国家开发银行签署合作协议 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
XCMG Brasil Industria Ltda (XCMG Brazil)
Interested in applying for this grant?
Complete our application form to express your interest and we'll guide you through the process.
Apply for This GrantQuick Summary
Related Grants
