Brazil steelmaker Gerdau has welcomed the idea of a regional bank that could connect the BRIC (Brazil, Russia, India, China) nations, an executive told reporters recently.

According to Gerdau’s CEO, Jorge Gerdau Johanpeter, the proposed $100 billion bank would strengthen the four countries. Leaders of the four countries signed a deal Tuesday to develop the bank, which would be headquartered in Shanghai, China. Its first president would come from India.

Brazil already has strong ties with China, which is an importer of iron ore and finished steel from the Latin American country.