State-run China Development Bank confirmed on Monday it has granted a loan of US$1.5 billion to Brazil’s oil giant Petrobras, Chinese official news agency Xinhua reported.

It was part of a long-term financing agreement between Petrobras and the lender that was signed last month when Chinese Premier, Li Keqiang visited Brazil.

According to the terms of the deal, the Chinese lender is providing Petrobras a total of US$5 billion in loans, of which US$3.5 billion were disbursed in April.

Petrobras also signed two initial agreements last month under which the Industrial and Commercial Bank of China and the Export-Import Bank of China will provide additional loans of US$5 billion in total.

Since 2006 China Development Bank has promised loans of US$39.5 billion to 28 Brazilian projects and has granted US$23.7 billion so far, Xinhua reported.

The news agency also reported many big Chinese financial institutions have “achieved rapid development” in Brazil thanks to the expanding co-operation between the two countries. During Mr Li’s visit, the China Bank of Communications announced it would buy an 80 percent of stake in Brazilian bank BBM.

“This acquisition will bridge the economic and financial co-operation between Brazil and China, and boost bilateral investment and trade,” Xinhua quoted Niu Ximing, president of the bank, as saying.