July 17, 2014 / 3:20 PM / 3 years ago

Brazil's Embraer signs deal to sell 60 E-190s to China

BRASILIA (Reuters) - Brazil's Embraer SA (EMBR3.SA) agreed to sell 60 E-190 commercial passenger jets to China as part of a raft of deals signed by the presidents of the two countries to deepen commercial ties, the Brazilian government said on Thursday.

Embraer will sell 40 planes to China's Tianjin Airlines [TJAIR.UL], half of which will be the re-engined model known as E-190 E2, entering service in 2018. The Industrial and Commercial Bank of China Ltd (601398.SS) will buy 20 aircraft, following an accord in 2012 to provide leasing for Embraer planes.

In agreements signed after a meeting on Thursday between presidents Xi Jinping and Dilma Rousseff, the two BRICS partners agreed to join forces in developing railways projects that will help Brazil get its export commodities to China.

China's Eximbank extended a $5 billion credit line to Vale (VALE5.SA) to buy or lease ships and shipping equipment from Chinese companies, but there was no mention of a solution to an impasse over China's refusal to allow giant, bulk iron ore carriers used by Vale SA (VALE5.SA) to dock at Chinese ports.

China's Construction Bank also formalized the acquisition of 72 percent of Brazilian mid-size lender Banco Industrial e Comercial SA or BicBanco, in a deal worth 1.62 billion reais ($726 million) when first announced in October.

Reporting by Alonso Soto; Writing by Brad Haynes; Editing by Jeffrey Benkoe and; W Simon

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