The board of Brazilian oilfield services company OSX Brasil S.A., part of Brazilian businessman Eike Batista's industrial empire, approved a financing deal with government-run bank Caixa Economica Federal, according to a regulatory filing made late Thursday, Dow Jones reports.
The company's board approved the 1.35 billion Brazilian reais ($659 million) loan to shipbuilding unit OSX Construcao Naval S/A during a meeting Wednesday, according to the filing.
OSX is positioning itself as a key player in the renaissance of Brazil's shipbuilding industry, one of a series of new shipyards under construction to meet demand for oil platforms and drilling rigs the government wants built in the country. Oil companies operating in Brazil are obligated to use a certain percentage of locally produced goods and services under strict local content rules.
The company has sought loans with local financial institutions, including the Brazilian National Development Bank, or BNDES, and Merchant Marine Fund, to finance construction of the shipyard and equity stakes in floating production platforms.
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