UPDATE 2-Brazil's Embraer and Vale sign China deals as Xi visits

Thu Jul 17, 2014 3:38pm EDT

(Adds Vale and Bank of China deal; detail on Embraer)

BRASILIA, July 17 (Reuters) - Brazilian aircraft maker Embraer agreed to sell up to 60 commercial passenger jets to China and mining company Vale received two new credit lines from Beijing, as the presidents of the two countries signed agreements to deepen commercial ties.

The Brazilian government announced the deals on Thursday after a meeting between presidents Xi Jinping and Dilma Rousseff in Brasilia, the capital. Leaders of major emerging countries have been in Brazil attending a summit of the so-called BRICS countries - Brazil, Russia, India, China and South Africa.

Under one accord, Embraer, the world's largest maker of regional jets, will sell 40 of its E-190 planes to China's Tianjin Airlines, half of which will be the re-engined model known as E-190 E2, set to enter service in 2018.

The Industrial and Commercial Bank of China Ltd will buy up to 20 aircraft, with 10 firm orders and an option to buy 10 more, following an agreement in 2012 to provide leasing for Embraer planes.

Meanwhile, China's Eximbank extended a $5 billion credit line to Vale to buy or lease ships and shipping equipment from Chinese companies. There was, however, no mention of a solution to an impasse over China's refusal to allow giant, bulk iron-ore carriers used by Vale to dock at Chinese ports.

Vale, which ships the vast majority of its production to China, said in a statement that it also received a $2.5 billion line of credit from the Bank of China to buy Chinese equipment and services.

The two trading partners also agreed to join forces to develop railway projects that will help Brazil better transport its commodities to China.

China's Construction Bank also formalized the acquisition of 72 percent of Brazilian mid-size lender Banco Industrial e Comercial SA or BicBanco, a deal worth 1.62 billion reais ($726 million) when announced in October. (Reporting by Alonso Soto; Writing by Brad Haynes and Stephen Eisenhammer; Editing by Jeffrey Benkoe, W Simon and Steve Orlofsky)