Mizuho 'to make $500m Petrobras loan'

Japan's Mizuho Bank will reportedly extend $500 million in loans to Petrobras for oilfield development projects as part of a visit from Prime Minister Shinzo Abe, a report this week said.

Abe and Brazilian counterpart Dilma Rousseff will sign an agreement on the loan this Friday, along with a co-operation deal for an offshore development, the Japan Times reported.

The state-led Brazilian player will put the money towards a Japanese-made floating production storage and offloading unit as well as an offshore vessel built by a local player with support from a Japanese company, the newspaper said.

Petrobras, estimated to be among the world's most debt-laden oil companies, has used a range of financing options to back an ambitious $220.6 billion spending plan.

The company's heavy borrowing levels are tied to both its full exploration and development plate as well as fuel subsidies that cut into its revenue generation.

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