Brazilian energy giant Petrobras has signed two credit notes and a memorandum of understanding (MoU) with Banco do Brasil to support sustainability and energy transition projects. The agreements, valued at R$6.5 billion ($1.1 billion), aim to fund initiatives in biofuels, renewable energy, biodiversity preservation, and energy efficiency.
The two credit notes, maturing in 2032, are complemented by the renewal of a revolving credit facility worth R$2 billion ($350 million), originally set to expire in 2026, now extended to 2030. The agreement strengthens both companies’ long-term commitment to sustainability and the decarbonisation of Brazil’s energy sector.
Petrobras CEO Magda Chambriard emphasised the significance of the initiative, stating: “This reinforces our commitment to the energy transition and the preservation of biodiversity, contributing to the country’s development in a responsible manner and in line with global sustainability challenges.”
As part of the agreement, Petrobras and Banco do Brasil have pledged to apply the funding towards projects that align with global climate goals. These include investments in renewable energy, biofuels, and biodiversity protection. To ensure compliance, an external consultancy will conduct annual evaluations to assess whether these commitments are being met.
Banco do Brasil’s President, Tarciana Medeiros, highlighted the bank’s role in promoting sustainable finance. “We work not only in granting sustainable credit but also with consulting and intelligence transfer, allowing our clients to advance projects that benefit companies, people, and the environment,” she said.
She added that partnering with Petrobras is key to achieving long-term environmental and social goals. “It is crucial to have Petrobras as a relevant partner in this quest, combining pioneering and innovation with social, environmental and climate commitment, while continuing to contribute to national development.”
Banco do Brasil has already achieved net-zero status in its direct carbon emissions and is committed to reaching the same standard across its financed portfolio by 2050. The bank also plans to expand its role in Brazil’s carbon credit market, focusing on sustainable development within the country’s unique ecosystems.
Petrobras and Banco do Brasil also signed an MoU for technical cooperation in developing projects related to decarbonisation and biodiversity conservation. The agreement will facilitate collaboration on green finance, helping identify and assess new sustainability projects, financial structures, and funding mechanisms.
Fernando Melgarejo, Petrobras’ Financial and Investor Relations Director, underlined the strategic importance of these commitments. “The contracting of the credit line with sustainability commitments reinforces Petrobras’ commitment to socio-environmental responsibility, preparing the company for the future of the energy transition not only in our projects and operations, but also in our financial practices.”
The initiatives are aligned with the United Nations Sustainable Development Goals (SDGs) and Brazil’s broader international climate commitments. They also support Banco do Brasil’s 2030 Commitments for a More Sustainable World, which seek to expand green financing and climate-conscious investments.
In addition to its sustainability financing efforts, Petrobras has also finalised a long-term liquefied natural gas (LNG) sales and purchase agreement (SPA) with Centrica. Under the deal, Petrobras will purchase 0.8 million tonnes per annum (mtpa) of LNG for 15 years, starting in 2027.
