Brazilian oil company Petrobras has signed a term sheet with China Exim Bank (Export-Import Bank of China) containing the main terms and conditions for a US$1 billion loan.

According to Petrobras, the final loan agreement is already being negotiated, anticipating the funding planned for 2017.

The agreement is related to supply contracts for equipment and goods that Petrobras has already signed with Chinese companies to meet the Company’s projects that are included in the 2015-19 Business and Management Plan, Petrobras said, adding that the transaction is part of Petrobras’ financial strategy to diversify its sources of funding