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By Brasil 247 - The National Bank for Economic and Social Development (BNDES) and the Export-Import Bank of China (CEXIM) are joining forces to create an investment fund with a target value of up to $1 billion. The initiative, announced Thursday by Nelson Barbosa, BNDES's director of Planning and Institutional Relations, is part of a growing effort to deepen financial ties between Brazil and China. The news was first released by BNDES during the opening of the second International Seminar on Contemporary China Studies, held in partnership with the Latin American Faculty of Social Sciences (Flacso).

According to BNDES, the fund will be backed by an estimated $600 million from CEXIM and $400 million from the Brazilian development bank. Scheduled to become operational in 2026, the fund will provide financing through investment vehicles, debt securities and equity stakes in strategic projects across Brazil.

Barbosa highlighted the novelty of the arrangement, describing it as the first bilateral fund ever established between a Brazilian and a Chinese financial institution, with most operations to be carried out in Brazil's domestic currency.

"We signed a cooperation agreement to create a fund of up to $1 billion. This fund will be structured to finance capital market investments in Brazil. It would be a China-Brazil investment fund, with up to $1 billion in total, directed to projects here in Brazil," Barbosa said.

He also underscored the strategic importance of the partnership. "This new collaboration between the two institutions will strengthen the commercial and economic relationship between Brazil and China," Barbosa added.

The fund is expected to prioritize sectors considered critical for sustainable development, including ecological energy transition, green infrastructure, bioeconomy, agriculture, mining, digital economy and artificial intelligence.

Formalization and background

The process began on September 17, when BNDES and CEXIM signed a Memorandum of Understanding and a Declaration of Intent to cooperate.

CEXIM is dedicated to supporting China's foreign trade, overseas investment and international economic cooperation. The bank focuses on promoting sustainable economic growth, structural adjustments and China's internationalization strategy. 

(Reported by Brasil 247 on October 2, 2025)