RIO DE JANEIRO, Brazil’s Development Bank (BNDES) and the Export-Import Bank of China (Cexim) have formalized an agreement to establish a landmark US$1 billion (RM4.21 billion) joint investment fund aimed at financing strategic sectors that support economic development and innovation.
The fund, set to begin operations in 2026, will target investments across energy transition, infrastructure, mining, agriculture, and artificial intelligence (AI), reflecting both nations’ shared priorities in advancing sustainable growth and technological competitiveness.
Chinese President Xi Jinping (left), with Brazilian President Luiz Inácio Lula da Silva (right).
Under the arrangement, BNDES will contribute US$400 million, while Cexim will provide US$600 million. Together, the two institutions will deploy capital through a combination of debt securities and equity investments in Brazil, with a focus on projects that can accelerate industrial modernization, boost productivity, and support the low-carbon transition.
BNDES and Cexim have already signed a commitment term and a declaration of intent to cooperate in structuring the fund. According to BNDES planning director Nelson Barbosa, the initiative represents the first bilateral investment fund jointly developed by a Brazilian and a Chinese financial institution, marking a significant milestone in the countries’ economic partnership. Notably, the fund will operate primarily in Brazilian reais, underlining its commitment to supporting domestic market financing while reducing reliance on external currency volatility.
Speaking at the signing ceremony in Rio de Janeiro, Barbosa emphasized the broader importance of the initiative. “This new partnership between the two institutions will strengthen the commercial and economic relationship between Brazil and China. It will also create new channels of financing for projects that are crucial to Brazil’s long-term development and competitiveness, while deepening integration between our two economies,” he said.
The announcement comes at a time when Brazil is actively seeking to diversify its sources of foreign investment and build stronger ties with strategic partners such as China, which remains its largest trading partner and a growing source of capital inflows. The collaboration also complements China’s broader engagement in Latin America, where it has steadily increased investments in energy, infrastructure, and technology projects over the past decade.
Analysts say the fund could serve as a template for future bilateral investment platforms, especially those seeking to balance traditional sectors like mining and agriculture with forward-looking industries such as renewable energy and AI. For Brazil, the initiative offers a powerful financing mechanism to accelerate industrial transformation, while for China, it opens an avenue to strengthen its economic footprint in one of Latin America’s largest markets.
The new fund is expected to announce its first wave of investments soon after its official launch in 2026, with further details on governance and project selection criteria to be revealed in the coming months.
