Brazilian investment firm EB Capital Gestao de Recursos Ltda is in talks with investors from Saudi Arabia to launch a $600 million fund targeting the climate and energy sectors in the South American country.

The investment firm, which is backed by billionaire Marcelo Claure, is looking to launch the fund in Q3 2024, with 50% of the amount to be raised from Saudi Arabia, according to a Bloomberg report.

“This will be a fantastic opportunity for Saudi investors to approach the Brazilian market," Eduardo Melzer, founder and chief executive officer of EB Capital told Bloomberg.

The news comes in the wake of a series of agreements signed between Saudi and Brazil earlier this week to boost public and private sector investments. According to government data, total Brazilian-Saudi trade is currently around $7 billion and bilateral investment flows have been on the rise.

(Writing by Bindu Rai, editing by Seban Scaria)