Federative Republic of Brazil ／ Loan Insurance for ALBRAS – Alumínio Brasileiro S.A.

Nippon Export and Investment Insurance (NEXI, Chairman and CEO: Atsuo Kuroda) has decided to provide insurance for a loan made to ALBRAS – Alumínio Brasileiro S.A. (hereinafter “ALBRAS”), an aluminium producer in the Federative Republic of Brazil.

This loan is a co-financing arrangement between MUFG Bank, Ltd. (hereinafter “MUFG”) and the Japan Bank for International Cooperation (hereinafter “JBIC”). NEXI’s insurance will cover the loan facility provided by MUFG.

Prior to this financing, in March 2025, a Memorandum of Cooperation was announced in the presence of H.E. Mr. Luiz Inácio Lula da Silva, President of the Federative Republic of Brazil, and H.E. Mr. Shigeru Ishiba, the former Prime Minister of Japan¹. The memorandum was signed by ALBRAS, Nippon Amazon Aluminium Co., Ltd. (hereinafter “NAAC”), JBIC, MUFG, and NEXI, which outlined a framework for strengthening the supply chain in the low-carbon aluminium sector. This loan insurance is provided in accordance with the memorandum.

Since 1985, ALBRAS has been producing low-carbon aluminium with an annual production capacity of 450,000 tons in the state of Pará, Brazil, utilizing hydropower and other renewable energy sources.　NAAC, which holds a 49% equity stake in ALBRAS, facilitates the supply of a portion of ALBRAS’s output to Japan.

The loan proceeds will be used for capital investments aimed at maintaining ALBRAS’s production capacity. This financing plays a critical role in ensuring the stable and continuous supply of strategically important low-carbon aluminium to Japan. Furthermore, it is expected to contribute to the decarbonization efforts of Japanese companies that procure aluminium from ALBRAS.

NEXI, as a governmental financial institution of Japan, will continue to actively support efforts that contribute to securing a steady supply of resources and energy to Japan, and the efforts by Japanese companies to achieve carbon neutrality.

Reference

Insured	MUFG Bank, Ltd.
Tenor	10 years
Covered risks	Political risk: 100%, Credit risk: 97.5%

Contact:
Natural Resources Group
Loan Insurance Department
Tel: +81-(0)3-3512-7672

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¹ NEXI News Release, May 27, 2025.
https://www.nexi.go.jp/topics/newsrelease/202503250728.html