The Brazilian Development Bank BNDES granted a US$ 3.7 billion (8.8 billion reais) loan to Sete Brasil Participacoes SA. Besides the loan, BNDES’s investment branch, the BNDESPAR, will subscribe to 1.2 billion reais in convertible debentures from Sete. The oil-rig producer is, amongst others, held by Petroleo Brasileiro SA and Banco BTG Pactual SA.
To motivate the loan, BNDES cites its support for the Brazilian government's local content requirement policy. Said policy requires that 65 percent of inputs in the development of Brazilian oil fields are sourced domestically. Furthermore, BNDES seeks to support the establishment of a national champion in deepwater rig construction as well as the creation of "quality jobs" at Brazilian shipyards.
The beneficiary, Sete, was created to commission the construction of oil rigs for state-owned Petrobras. The company will only supply the rigs and commission the production to shipyards. The loan aims at backing the production of nine out of 29 offshore drilling rigs. 28 of them have been commissioned by Petrobras which wants to tap the Brazilian offshore pre-salt reserves, one of Brazil’s biggest oil discoveries. Five Brazilian shipyards are responsible for the construction of the oil-rigs: Jurong Aracruz, Estaleiro Atlântico Sul, BrasFels, Estaleiro Rio Grande and Estaleiro Enseada Paraguaçu.
In general, the Brazilian Development Bank provides credits with below-market interest rates to legal persons (private or public) with headquarters and administrations in Brazil. In the case of companies with headquarters abroad, majority shareholders (private or public) need to have residence in Brazil.