China to announce billion-dollar financial investment in Brazilian port of Sao Luis: sources

China to announce billion-dollar financial investment in Brazilian port of Sao Luis: sources

BRASILIA (Reuters) – China will make a billion-dollar investment in the Brazilian port of Sao Luis by means of China Communications Building And Construction Business (601800 SS), two sources with direct understanding of the matter stated on Wednesday.

Speaking on condition of anonymity, the sources stated the statement will be made at the top of leaders of Brazil, Russia, India, China and South Africa, the so-called BRICS group of emerging nations, who are satisfying in the Brazilian capital for a two-day summit.

The offer will belong to the biggest foreign direct financial investment into Brazil this year, one of the sources said, without revealing any figures.

Economy Minister Paulo Guedes stated on Wednesday that Brazil is looking for closer integration with China, its biggest trading partner, including not just trade but also investments.

” We had a giant trade program, but not so much investment circulations. (Now) financial investment circulations are increasing too,” among the sources stated.

A third source stated the deal will be a “greenfield” operation, with the Chinese financial investment focused on expanding the port and operations. It will not involve the purchase of a regional business, but might include equity stakes changing hands, the source stated, also on condition of anonymity.

The foundation of the port of Sao Luis was laid in March in 2015. At the time, China’s state-run news company Xinhua reported that CCCC led the task with a 51%equity stake in the venture, together with Brazil’s WPR, construction group WTorre, and investment company Lyon Capital.

Found in the northern state of Maranhao, the port of Sao Luis serves the central, northern and northeastern areas of Brazil, and is linked by the Norte-Sul/Carajas train. According to one source, CCCC’s financial investment will include costs on the railway.

Reporting by Marcela Ayres; Additional reporting by Lisandra Paraguassu; Writing by Jamie McGeever; Modifying by Marguerita Choy

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